FOR IMMEDIATE RELEASE
December 05, 2007
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AdvaMed Calls for Permanent Extension of
R&D Tax Credit and Uniformity in Implementation
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WASHINGTON, D.C.– AdvaMed joined a coalition of innovators and developers today to call on Congress to make permanent the research and development (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 2007, provides much-needed assistance to companies engaged in R&D activities, which have increased 20 percent cumulatively each year since 1990.
“Extension of the R&D tax credit has unfortunately turned into a biennial event for the Congress, weakening its intent by interrupting on-going research and creating a sense of uncertainty, particularly for small and emerging growth companies,” said Stephen J. Ubl, president and CEO of AdvaMed. “Small businesses are often the engines that drive innovation, and the R&D tax credit should be permanent so companies can have the full benefit of the credit for long-term planning and research projects.”
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.
“All companies engaged in research and development in the U.S. should be eligible for a strong R&D tax credit at the equal rate of 20 percent,” Ubl said. “An evenly applied 20 percent rate will encourage more companies to locate their R&D operations in the U.S. and help to attract the most qualified workers from around the world.”
# # #AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. Our members produce nearly 90 percent of the health care technology purchased annually in the United States and more than 50 percent purchased annually around the world. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit
www.advamed.org.