|
Senate Finance
Committee Approves Wonderling Legislation
to Expand Research and Development
HARRISBURG -- Legislation
introduced by Sen. Rob Wonderling to expand the state’s research and development
tax credit program was unanimously approved by the Senate Finance Committee
today.
“This bill
will encourage businesses to invest in the development of new goods and services
and help to create and retain high-quality jobs for hard-working
Pennsylvanians,” Wonderling said. “Lowering the cost of research and
development expenses will provide a great incentive for businesses to invest
more of its capital in new products and technologies.”
Wonderling said Senate Bill 670
would increase the current cap on research and development tax credits from $30
million to $120 million a year and change the sunset date from December 31, 2006
to 2008. The amount of tax credits set aside for small companies-those with
assets valued under $5 million-would also be increased from $6 million to $40
million.
“The current level of research
and development tax credits is insufficient to support employers that are making
significant investments in innovations to compete in the global economy,”
Wonderling said. “The program should be expanded to help more companies remain
successful and grow in Pennsylvania, especially the high-tech and bio-tech
industries that are emerging in our state.”
The R&D tax credit may be claimed against the
Corporate Net Income tax, the Capital Stock and Franchise Tax or the Personal
Income Tax. The bill also would maintain the existing statute that allows
taxpayers to carry over and apply any unused tax credit for up to fifteen years.
# # #
|
