Monday, April 26, 2004
The U.S. semiconductor industry is again calling for permanent extension of the federal R&D tax credit, this time playing the outsourcing card as a way to convince lawmakers that changes are needed.
The current R&D tax credit expires at the end of June.
"With foreign countries aggressively seeking to attract semiconductor design centers and R&D activities to locate abroad, action to make the United States R&D tax credit permanent is urgently needed," George Scalise, president of the Semiconductor Industry Association (SIA), said Wednesday (April 21) in a statement.
SIA estimates that U.S. chip makers spent about $14 billion, or 17 percent of sales, on R&D in 2003. "R&D jobs are among the highest-paying in the microchip industry, thus making such activities a prime target for countries seeking to outsource American jobs," Scalise added.
Always a tough sell in Congress, the issue could be even tougher this year as the federal budget deficit soars. Previous moves to extend the tax credit have fallen short, including proposals to extend the tax break for five years. The political compromise has frequently been yearly extensions.
By: DocMemory
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