Thursday, October 2, 2008

U.S. Bailout Bill Extends R&D Credits

The financial bailout bill passed by the U.S. Congress and signed by President Bush last week (H.R. 1424 - Emergency Economic Stabilization Act of 2008) includes retroactive extension of a two-year extension of the R&D Credit through the end of 2009. The package included an increase in the Alternative Simplified Credit from 12% to 14% beginning in 2009.

The Telecommunications Industry Association (TIA) hailed the inclusion of this provision, which had been sought by many companies in the information and communications technology (ICT) industry.

"We will continue to work next year toward a permanent R&D Credit," said TIA Vice President for Government Affairs Danielle Coffey, "but TIA is pleased that the Congress has acted to reinstate the credit for the entirety of 2008 and through 2009 with an expanded Alternative Simplified Credit limit."