AdvaMed Calls for Permanent Extension of R&D Tax Credit

AdvaMed called on Congress to make permanent the R&D tax credit that was first ratified in 1981 and to provide parity in the formulation used in determining the percentage of credit that companies receive.  

The tax credit, which is set to expire at the end of December, provides assistance to companies engaged in R&D activities.

“Extension of the R&D tax credit has unfortunately turned into a biennial event for the Congress, weakening its intent by interrupting ongoing research and creating a sense of uncertainty, particularly for small and emerging growth companies,” Stephen Ubl, president and CEO of AdvaMed, said. 

Ubl also highlighted the importance of making the R&D tax credit equitable for all companies. The current tax credit involves three formulations whereby some companies receive a higher tax credit and others received much less. 

“An evenly applied 20 percent rate will encourage more companies to locate their R&D operations in the U.S.,” Ubl said.