I heartily agree with Javier Huertas' opinion that too many companies are not taking full advantage of the federal R&D tax credit [“Making use of R&D tax credit,” Perspective, March 15, Page 6].
As part of the R&D Credit Coalition, the Society of the Plastics Industry Inc., the plastics industry trade association, has been a leading advocate for permanent extension and enhancement of the credit, which expired on Dec. 31. To that end, SPI encouraged its members to contact their elected officials and urge their support for H.R. 422 and S. 1203. Until a permanent extension has been passed, SPI also works to obtain a temporary extension of the R&D tax credit through 2010. The House passed this temporary extension in early December (H.R. 4213) and the Senate passed it March 10.
Innovation has always been the prime characteristic of our industry and is even more critical today in order to rejuvenate a maturing industry. Without the R&D tax credit, innovation is impeded as companies are wary of taking on the burden of research costs. High costs are already driving R&D investments overseas — without this tax credit, the situation becomes even more acute. The R&D credit is one of the best ways to stimulate future economic growth.
We urge all plastics companies to do the analysis necessary on the front-end to determine if they qualify for this beneficial tax credit. (We also encourage companies to stay tuned for details on SPI's Webinar on the R&D Tax Credit coming this fall.) .
Society of the Plastics Industry Inc.