American Research and Competitiveness Act, H.R. 4438 (R&D Permanency)

By at 7 May, 2014, 9:17 am

UPDATE:  H.R. 4438 passsed the U.S. House on May 9, 2014 by a vote of 274-131.

Dear Member of the U.S. House of Representatives:

The Small Business & Entrepreneurship Council (SBE Council) and its 100,000 entrepreneur and small business members strongly support “The American Research and Competitiveness Act of 2014,” H.R. 4438.  Strengthening and making permanent the research and development (R&D) tax credit will especially benefit small to mid-size firms, and in turn boost the economy and our nation’s innovative capacity.

Our temporary, year-to-year tax policies are not effective for small businesses.  Moreover, the economic outlook remains uncertain for entrepreneurs, thus planning for investments is riskier and made more difficult. Tax incentives that expire every year or two only add to a business owner’s hesitancy about capital expenditures and investments.

Making permanent tax incentives that encourage investment – particularly on R&D – would align with how entrepreneurs plan, and how they can capture expenses to take advantage of the credit.  H.R. 4438 will allow small firms to more confidently plan for expenditures on hiring and investment, which specifically relate to R&D. This will make them more competitive, while encouraging hiring and spending that enable innovation and economic growth.

SBE Council strongly encourages you to vote for H.R. 4438.  Thank you, in advance, for your support of America’s small businesses and entrepreneurs. 


Karen Kerrigan, President & CEO 

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