(Washington, D.C.) – In a boon for Washington’s workers and economy, the United States Senate today passed tax legislation that includes Senator Patty Murray’s provision extending the Research and Development tax credit through the end of 2005. Originally included earlier this year in the Senate's FSC-ETI bill, the Murray-Hatch Amendment extends the R&D tax credit until December 2005 and broadens the credit to make more employers eligible. With the FSC-ETI bill currently stalled, Senator Murray worked to include her R&D credit in the final version of a families and children tax package that passed the Senate by a vote of 92-3 this evening.
“Providing targeted tax relief cannot wait. That's why I will continue to push for sound and fair tax policy that benefits those who need it most in this delicate economic climate. We can put people back to work, and my tax credit is a great start,” Murray said. “This measure gives both small and large companies a real incentive to invest in jobs and workers here in the U.S. It’s going to help our technology sector, our manufacturing sector, and our workers. Recently we’ve seen American jobs being shipped overseas – the Research and Development tax credit will help keep those jobs here at home.”
When she originally offered her R&D tax credit amendment with Senator Orrin Hatch (R-Utah) in March, Murray spoke on the Senate floor about how the tax credit will encourage companies to invest in Washington state
The $146 billion package passed by the Senate today also includes other important tax provisions to benefit working families, including extensions of the child tax credit, marriage penalty relief, and the 10-percent income tax bracket. In addition, it provides assistance to military families in combat zones by increasing the child credit for military families.
“We have soldiers in combat right now half way around the world risking their lives while their families remain here at home, many of whom are struggling to make ends meet,” Murray said. “Providing these heroes with a bit of extra assistance is the least we can do in the difficult times."
When Murray first passed the R&D extension, business and technology leaders applauded the vote and its impact on Washington state.
“The amendment passed by the Senate today will have benefits all across the country but nowhere more than Washington state. Senator Murray deserves credit for her leadership in making sure that U.S. companies and Washington companies in particular can continue the research that creates jobs and innovative products for our economy,” said Rick White, CEO of TechNet, a group of more than 150 chief executive officers and senior partners of companies in the fields of information technology, biotechnology, venture capital, investment banking and law.
“We commend the Senate for voting in favor of an amendment to the JOBs Act that will extend R&D tax credit for eighteen months. This amendment, if enacted by Congress, will provide a critical, effective and proven incentive for companies to increase their investment in U.S.-based research and development which is critically important to the Washington State economy. We appreciate Senator Murray’s leadership on the issue and are hopeful that Congress will timely pass the JOBs Act,” said Jack Krumholtz, Microsoft’s Managing Director, Federal Government Affairs.