HOUSTON, June 13, 2017 /PRNewswire/ — alliantgroup would like to applaud U.S. Senators Chris Coons (D-DE) and Pat Roberts (R-KS) for the introduction of the Invent and Manufacture in America Act. If signed into law, this bipartisan tax bill would provide a tax cut for companies that conduct research and development in the U.S. and also domestically manufacture products resulting from this R&D.
“Research and development in new technologies and new products is an important source of economic growth,” said Senator Roberts in a statement released by the office of Senator Coons. “The new technologies, products and lower prices generated by investments in R&D create new jobs, raise wages and create new demand for goods and services. Our legislation would increase cash flow for small businesses and start-ups involved in R&D intensive activities by reducing past, current and future tax liabilities leading to permanent tax savings.”
Scientific and technological innovation accounts for nearly 50 percent of economic growth in the United States. However, investment in R&D has remained stagnant for more than a decade in the U.S., increasing at a pace of only 1.6 percent annually since 2000.
Further complicating the country’s growth potential is the continued offshoring of manufacturing operations, which has separated manufacturing processes from the facilities where R&D efforts are conducted. According to numbers released by Senator Coons’ office, companies are twice as productive in their R&D efforts when operations are co-located with a manufacturing facility. Yet the same release shows that American companies continue to outsource their manufacturing operations, with the U.S. losing over 5 million manufacturing jobs and more than 70,000 manufacturing plants having closed or moved offshore since 2000.
To combat these trends, the Invent and Manufacture in America Act would enhance the value of the Research and Development (R&D) Tax Credit by up to 25 percent for companies that perform the majority of their manufacturing operations in the U.S. The enhancement is graduated so that the credit increases as the percentage of a company’s domestic manufacturing operations increases.
“To remain the world’s leading economy in the 21st century, we must continue to expand investments in research and development, which is the lifeblood of economic growth,” said Senator Coons in a written statement. “But it’s not simply enough to invent products in the United States. Those products should also be manufactured here. A strong, growing manufacturing sector will create jobs and drive more foreign direct investment and reshoring to the United States. That’s why I’m proud to partner with Senator Roberts to introduce bipartisan legislation that will help companies invent and make their products in America.”
“This is, without a doubt, a major step in the right direction for our nation’s anti-outsourcing movement,” said Dhaval Jadav, alliantgroup CEO. “I applaud the bipartisan efforts of Senators Coons and Roberts, who have both been longtime champions of the R&D Tax Credit and strong advocates for American businesses.”
alliantgroup is a premier specialty tax services consultancy that assists U.S. businesses and their CPA firms in identifying and properly claiming all available federal and state tax incentives. Our government has legislated these incentive programs to help businesses grow and successfully compete both in the U.S. and abroad. Headquartered in Houston, and with offices in New York, Boston, Chicago, Orange County, Sacramento, Orlando, Indianapolis and Washington D.C., alliantgroup has helped businesses from across the nation claim over $5 billion in tax incentives. For more information on our services, please follow alliantgroup on Facebook and Twitter.