SAN JOSE, Calif. The Semiconductor Industry Association (SIA) on Wednesday (Sept. 29) praised the U.S. House and Senate for passage of legislation extending the research and development tax credit.
In June, the SIA here called for the U.S. government to extend the tax credit for research and development, claiming that its lapse would weaken the U.S. economy and national security by increasing the cost of technology R&D.
The R&D tax credit has been extended for short periods of time, creating a high degree of uncertainty in the planning process.
"The R&D tax credit has played a vital role in keeping U.S.-based semiconductor manufacturers in the forefront of this very competitive industry," said SIA President George Scalise, in a statement.
"U.S. semiconductor manufacturers invested approximately $14 billion 17 cents out of every sales dollar in R&D in 2003," he said. "The tax credit has been a very important incentive for chipmakers and other technology industries to make a sustained commitment to R&D regardless of economic conditions. In the semiconductor industry, leadership in technology is vital, and a sustained commitment to R&D is the only way to maintain leadership. We are very grateful to the House and Senate for taking this important action."