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IPC – Association Connecting Electronics Industries today is applauding the U.S. Congress for enacting meaningful tax reform legislation, including making the research and development (R&D) tax credit permanent.
The Protecting Americans from Tax Hikes (PATH) Act would revive more than 50 temporary tax provisions that expired in 2014, including some important IPC priorities. For example, the R&D tax credit has been extended repeatedly – but only on a temporary basis – for more than 30 years. At the request of its members, IPC has long advocated for a permanent R&D tax credit through a variety of activities, including dozens of IPC member meetings with lawmakers in 2015 alone. IPC President and CEO Dr. John W. Mitchell sent a letter to all members of Congress on the morning of the vote, urging them to support the bill.
“Despite the U.S. economy’s overall recovery, the U.S. manufacturing sector is facing potentially strong headwinds,” Mitchell wrote. “Now, more than ever, U.S. manufacturers need the kind of long-term business incentives this bill provides. … By permanently extending the R&D tax credit, and expanding its utility to small enterprises, the PATH Act embraces the notion that U.S. companies that are encouraged to innovate will be more competitive in the global economy.”
In addition to the R&D tax credit, the bill also includes:
- Permanent enhanced expensing for smaller manufacturers, providing annual write-offs of up to $500,000 for investments in equipment and machinery; and
- A multi-year extension of bonus depreciation (50 percent first year expensing).
IPC member companies employ more than 800,000 workers across the United States in more than 2,200 manufacturing facilities.
IPC is a global industry association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 3,700 member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $2 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Washington, D.C.; Atlanta, Ga.; Stockholm, Sweden; Moscow, Russia; Bangalore and New Delhi, India; Bangkok, Thailand; and Qingdao, Shanghai, Shenzhen, Chengdu, Suzhou and Beijing, China.