Semiconductor Industry Hails Passage of Permanent R&D Credit
Friday, Dec 18, 2015, 3:10pm
by Semiconductor Industry Association
WASHINGTON—Dec. 18, 2015—The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today hailed final passage of legislation to permanently extend the R&D tax credit. A permanent credit will offer U.S. semiconductor companies certainty that the U.S. will continue to offer an incentive for domestic research, allowing them to plan investments for years to come.
“A permanent R&D credit is a huge win for the semiconductor industry,” said John Neuffer, President and CEO of the Semiconductor Industry Association. “No industry invests a higher percentage of revenue in research than the U.S. semiconductor industry. Sustained, long-term research and innovation have been the foundations of the U.S. semiconductor industry’s leadership in the world marketplace for semiconductors. By making the credit permanent, this legislation will enhance the ability of the U.S. semiconductor industry to innovate and continue to improve our daily lives.”
In 2014, the U.S. semiconductor industry invested about one-fifth of its revenue into research and development. SIA also supports the extension of bonus depreciation and the so-called “CFC look-through” rule. The semiconductor industry directly employs nearly 250,000 people in high-skilled, high-wage jobs across America, and a large number of these jobs are in the areas of research and innovation. Since over 70 percent of credit dollars are used to pay the salaries of high skilled R&D workers in the U.S., this legislation will help support research jobs at U.S. semiconductor companies.
“Making the R&D credit permanent is a key step to improve America’s ability to innovate and maintain technological leadership,” Neuffer said. “We look forward to working with Congress to enact comprehensive tax reform that will strengthen research incentives, lower the corporate rate, and move toward a territorial international system that does not discourage U.S. companies from investing overseas income in the U.S.”
The Semiconductor Industry Association (SIA) is the voice of the U.S. semiconductor industry, one of America’s top export industries and a key driver of America’s economic strength, national security, and global competitiveness. Semiconductors – microchips that control all modern electronics – enable the systems and products we use to work, communicate, travel, entertain, harness energy, treat illness, and make new scientific discoveries. The semiconductor industry directly employs nearly a quarter of a million people in the U.S. In 2014, U.S. semiconductor company sales totaled $173 billion, and semiconductors make the global trillion dollar electronics industry possible. SIA seeks to strengthen U.S. leadership of semiconductor manufacturing, design, and research by working with Congress, the Administration and other key industry stakeholders to encourage policies and regulations that fuel innovation, propel business and drive international competition.