"The American dream and entrepreneurship is truly based on innovative business practices," Hull said. "This extension keeps that dream alive."
The Research and Experimentation Tax Credit, now extended through the end of 2007, rewards companies for investing in innovation and improvements but is not limited to companies that solely provide product development. Since the credit's initial passage in 1986, it has been reinstated 19 times.
"Ironically, it's never been a matter of gaining support on either side of the political spectrum," Hull said, "but rather the majority accepting the form in which it was presented."
The credit has saved taxpayers an estimated $16.3 billion.
One of the credit's major "sticking points" has been alleviated with the creation of a new Alternative Simplified Credit option for companies in 2007. While this option simplifies the process of researching several years for information that may or may not exist, it does not waive the need for a stringent qualification process.
