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 email@example.com.
- CompTIA now offers its research without charge
- 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
Read more about Government/Industries in Computerworld's Government/Industries Topic Center.
- Manufacturing Outlook: Improving time to market, operational effectiveness and innovation in a highly competitive environment An enterprise project portfolio management solution can help manufacturers position themselves in the new competitive landscape.
- Time-to-Market: The Need for Speed in the Automotive Industry Bringing new vehicles to market quickly has never been more challenging. To bring new models to market on-time and on budget, automakers need...
- Patient Portals: A Platform for Connecting Communities of Care Connecting patient health data across the care continuum is essential to achieve improved care, increased access to personal health records and lowered costs.
- 3 Ways Clinicians Can Leverage a Patient Portal to Craft a Healthcare Community With a bevy of vendors offering patient portal solutions, it can be challenging for a hospital to know where to start. Fortunately, YourCareCommunity...
- Live Webcast Best Practices: How to Improve Business Continuity with Virtualization VMware solutions include a range of business continuity capabilities to help ensure availability for applications across your virtualized environment. Learn More>>
- Live Webcast
Transforming Finance, Procurement and Supply Chain Effectiveness with Cross-Functional Analytics
Date: May 6th, 2014
Time: 1 PM EDT
Attend this Webcast to find out how Oracle's packaged analytic applications enable line-of-business managers to examine all...
- Live Webcast LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users?
- 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.
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources... All Government/Industries White Papers | Webcasts