Watervliet, NY –U.S. Senator Kirsten Gillibrand today announced a new proposal to spur innovation and job creation in the Capital Region. At the Watervliet Arsenal Business & Technology Partnership, Senator Gillibrand detailed a new proposal to expand, simplify, and make permanent the Research and Development Tax Credit. With leading research institutions, cutting edge businesses, and highly-skilled entrepreneurs, New York is poised to lead America’s high tech economy. More than 2,000 New York companies could take advantage of the R&D credit. Making it permanent could increase private investment in R&D by more than $7.5 billion across the country.
“My number one focus is on creating good-paying, family-supporting jobs,” Senator Gillibrand said. “By supporting research and development, we can help our businesses become more competitive and create the high tech jobs of tomorrow. Our state is already home to the universities, businesses, laboratories, researchers and the bright minds we need for long-term economic strength. This proposal would leverage more private investment in our high-tech sector, creating good paying jobs right here in the Capital Region.”
“Expanding and making permanent the research and development tax credit will help spur innovation and create jobs,” said Congressman Paul Tonko. “It’s a common sense approach that will help thousands of businesses move forward with cutting edge projects and keep them competitive in this global economy. I commend Senator Gillibrand for her leadership on this legislation and I will work with my colleagues in the House to make this issue a priority.”
“The economic transformation we’re witnessing at the Watervliet Arsenal is evidence that these investments in high tech R & D pay off and Senator Gillibrand’s leadership to ensure that they are extended is proof of her commitment to revitalize Upstate New York’s economy,” said Majority Leader Ron Canisteri. “Extension of the R & D tax credits will enable us to build upon the state’s investments and will undoubtedly lead to job creation right here in the Capital Region.”
Albany County Executive Mike Breslin said, “Senator Gillibrand has been a champion for economic development throughout the State and her efforts will help to keep the innovation economy in the Capital Region vibrant. The expansion and permanent extension of the federal Research and Development Tax Credit will give businesses added impetus to make investments and create and retain high tech jobs.”
“In today’s competitive global economy, it is critical for US companies to commit to longer term research and development in high technology markets,” said Alan Fuierer, Chief Technology Officer, Chief Operating Officer and Co-Founder of Solid Sealing Technology. “A permanent R&D tax credit will help companies expand their technology base and provide the means to pursue leading edge applications.”
Expanding the R&D Tax Credit would create more than 162,000 jobs nationwide, according to the Information Technology and Innovation Foundation. More than four-fifths of the cost of the credit is spent directly on wages for researchers.
Senator Gillibrand’s proposal would not only create R&D-based jobs, it would encourage companies to plan for the future, investing in new ways to streamline their processes and upgrade their products.
Senator Gillibrand’s proposal would:
- Expand the current credit by changing the formula to provide greater incentive for companies to increase investment
- Simplify the current credit, which is highly complicated and confusing.
- Make the new credit permanent, which would provide private companies with the confidence they need to make significant future investments in R&D.
The R&D Tax Credit has been extended 14 times by Congress, but has never been made permanent, making it difficult for companies to make plans based on the support and investment from the program. Additionally, the current process for claiming the credit is very complicated. The proposal pushed by Senator Gillibrand would make the credit permanent to maximize its benefits for domestic economic growth, and simplify the formula for claiming the credit to make it accessible to more companies, matching 20 percent of a company’s increased research expenditures.
Thirty years ago, the U.S. was the global leader in providing tax incentives for private investment in R&D, but now the U.S. ranks 17th in the world among developed countries. Senator Gillibrand’s proposal would expand America’s effort to leverage R&D investment to support long-term economic growth.
Before the economic recession, R&D investment was already on the rise in New York. From 2003 to 2007, New York’s research and development sector grew by 16 percent, creating a 28 percent increase in investment to a total of $10.9 billion in 2007, according to the National Science Foundation.