Congress extends R&D, wind tax credits in 'fiscal cliff' deal
But tech industry insiders note that deal doesn't make R&D tax credit permanent, long a tech desire
Computerworld - The so-called "fiscal cliff" deal in Congress includes an extension of the R&D tax credit, but, once again, sidestepped any move to make it permanent.
This lack of permanency has kept the research and development tax credit in a constant state of flux, though Congress has consistently extended it since 1981.
The latest tax credit expired on Dec. 31, 2011. But Congress this week made it retroactive for 2012 and extended it for 2013.
"The fact that the R&D credit was a cornerstone of the fiscal cliff package bodes well for the industry," said Kevin Richards, senior vice president of federal government affairs at TechAmerica, an industry group. "But we're going to continue to underscore the need for permanency because we think there is a direct correlation between U.S. competitiveness and job creation."
TechAmerica says extending the wind energy tax credit is also important to the technology industry.
Google, for instance, has announced plans to buy wind power to help supply a data center it runs in Oklahoma.
The wind power tax credit had expired and the alternative energy industry was pessimistic about its prospects.
The action taken by Congress extends the tax credit for all wind projects that start construction in 2013. The American Wind Energy Association said the credit will save up to 37,000 jobs.
About 75,000 are currently employed in the industry.
In other actions important to tech, as well as other industries, was an extension of 50% bonus depreciation for capital expenditures through 2013.
"How the extension of the bonus depreciation will influence capital spending in the coming year is anyone's guess," said John Longwell, vice president of research at Computer Economics.
He said capital spending "mostly depends on whether the economy continues to improve or falls back into recession."
Patrick Thibodeau covers SaaS and enterprise applications, outsourcing, government IT policies, data centers and IT workforce issues for Computerworld. Follow Patrick on Twitter at @DCgov, or subscribe to Patrick's RSS feed . His e-mail address is firstname.lastname@example.org.
- Microsoft's new CEO and his first-100-days plan
- Personal history may thrust new Microsoft CEO into visa debate
- As Dell cuts, Apple adds jobs in Austin
- Dell cuts 'small percentage' of workforce
- Lenovo's Motorola, IBM server buys will likely get strict U.S. security review
- Welcome to the era of radical innovation
- China passes Japan to become world's 2nd largest IT market
- BlackBerry sale might not include smartphones
- Tech hiring accounts for 10% of U.S. employment gains
- Gartner offers more data on PC decline and tablet surge
Read more about Government/Industries in Computerworld's Government/Industries Topic Center.
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- The value of smarter oil and gas fields With global energy requirements continuing to rise, the exploration, development and production of new oil and gas resources are shifting to increasingly challenging...
Changing the Way Government Works: Four Technology Trends that Drive Down Costs and Increase Productivity
This paper discusses four technology-based approaches to improving processes and increasing
productivity while driving down department and agency costs.
- Accelerating Speed to Market in the Highly Competitive Automotive Industry This White Paper discusses how an Enterprise Project Portfolio Management solution optimizes project analysis, management, reporting and risk mitigation processes to accelerate new...
- Hedge Your Bets This report explains how visibility and increased governance is key to reducing risk.
- Make or Break: New Auto Products Must Go To Market On Time This Webcast quantifies the value of time to market for the auto industry and highlights how Primavera Enterprise Portfolio Management can help organizations.
- Webinar: Building a Big Data solution that's production-ready Big data solutions are no longer just a nice-to-have. All Government/Industries White Papers | Webcasts