Plastics Industry Lauds House for R+D Tax Credit Permanent Extension
9 May, 2014
The Plastics Industry Trade Association supports the U.S. House of Representative’s decision to permanently extend the research and development (R&D) tax credit. In a 274 to 131 bipartisan vote, the House today passed H.R. 4438, the “American Research and Competitiveness Act of 2014,” cosponsored by Rep. Kevin Brady (R-Texas) and Rep. John Larson (D-Conn.). The tax credit expired Dec. 31, 2013.
SPI is encouraged that a bipartisan majority in the House supports a tax policy that helps the plastics manufacturing industry compete in a global economy. The tax credit is largely a jobs credit—70 percent of credit dollars are used to pay the salaries of highly skilled R&D workers in the U.S.,” said SPI President and CEO William R. Carteaux. “A robust and permanent research and development tax credit is critical to the plastics manufacturing industry’s competitiveness, innovation and job creation.”
U.S. Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, said the Joint Committee on Taxation estimates that a permanent R&D credit could potentially translate to a 10 percent increase in research and development among American companies. A permanent tax credit would provide businesses with the certainty necessary to hire additional staff, increase salaries and invest in innovation, Camp’s office said in a statement.
SPI urges the Senate to act quickly to extend the R&D tax credit and for President Obama to sign the measure giving plastics industry manufacturers immediate certainty in making R&D decisions.
Founded in 1937, SPI: The Plastics Industry Trade Association promotes growth in the $373 billion U.S. plastics industry. Representing nearly 900 thousand American workers in the third largest U.S. manufacturing industry, SPI delivers legislative and regulatory advocacy, market research, industry promotion and the fostering of business relationships and zero waste strategies. SPI also owns and produces the international NPE trade show. All profits from NPE are reinvested into SPI’s industry services. Find SPI online at www.plasticsindustry.org and www.inthehopper.org.
"From resin suppliers and equipment makers to processors and brand owners, SPI is proud to represent all facets of the U.S. plastics industry," said William R. Carteaux, president and CEO, SPI. Our most recent economic reports show that the plastics industry as a whole is resilient, and has come through the recession significantly better than other U.S. manufacturing sectors."