HOUSTON, Sept. 21, 2011 /PRNewswire/ -- Chairman of the Senate Finance Committee Max Baucus (D-MT) and Finance Committee Ranking Member Orrin Hatch (R-UT) have proposed a new bill to strengthen the research and development (R&D) tax credit and make it permanent. If enacted, the Greater Research Opportunities With Tax Help (GROWTH) Act would fortify the R&D credit by eliminating the credit's reliance on extemporaneous information. Instead, the credit calculation would be modeled on the current version of the alternative simplified credit and the credit rate would increase from 14% to 20%. In addition, the GROWTH Act would finally make the R&D credit permanent, meaning that companies would be able to count on the credit in planning their long term research projects.
Top executives at alliantgroup, a premier provider of specialty tax services including the R&D credit, had this to say about the proposed legislation:
"The GROWTH Act introduced by Chairman Baucus and Ranking Member Hatch is certainly good news indeed for innovative companies in this country. Having the R&D credit expanded and made more robust for business is certainly a good step in the right direction for job growth today and for tomorrow." - Former Congressman Jim Ramstad, alliantgroup Senior Advisor.
"Simplifying and making the credit permanent will benefit employers and the IRS alike. Avoiding on-again, off-again changes to the tax code is always a good thing and helps businesses plan for the future." - Former IRS Commissioner Mark W. Everson, alliantgroup Vice Chairman.
"Today is a triumph for small and medium businesses engaged in cutting edge technology. Along with the proposed 20% expansion, it was especially heartening to hear Senator Baucus' commitment to work with Senator Grassley on changes that will strengthen this legislation further for small and medium business. These inexpensive changes, such as allowing the credit to be taken on amended returns and to count against the Alternative Minimum Tax (AMT) will translate into big benefits for business." - Former Senior Counsel to the Senate Finance Committee Dean Zerbe, alliantgroup National Managing Director.
"alliantgroup was pleased to welcome Chairman Baucus to our Houston headquarters last spring and showcase the importance of the R&D credit for jobs and the economy. We are very encouraged that Chairman Baucus listened closely to our comments as demonstrated by the legislation put forth today. This new legislation is certainly well received by the business owners and partner CPAs alliantgroup serves and will allow businesses to increase hiring during this tough economy." – Dhaval Jadav, alliantgroup CEO.