08/20/2026
Back in February 2008, former Michigan Governor John Engler, then heading into his role atop the National Association of Manufacturers, made the case in The Ripon Forum for why America can't afford to play games with the R&D tax credit:
Last spring U.S. Representatives Sandy Levin (D-MI) and Dave Camp (R-MI) introduced legislation to further strengthen the credit, and make the R&D tax credit permanent. In 2007, there were a record-breaking number of original cosponsors on the bill, all of whom are members of the House tax-writing committee in Congress, reinforcing the broad bipartisan support for innovation in Congress. Given that support and the R&D tax credit’s proven effectiveness, how is it that Congress allows it to expire – now for the unlucky 13th time? It’s not as if the legislators do not hear from their business constituents and trade associations, including the Information Technology Association of America, the Business Software Alliance and, of course, the National Association of Manufacturers.
Unfortunately, the research and development tax credit is so popular, so effective, that it has become a favored bit of legislative sweetener. It gets added to this measure or that, often in the waning days of a Congressional session, to attract a few more votes. When the credit lapses, the business community hears assurances like, “We’ll get it done…eventually. Don’t worry.”
But manufacturers and businesses in the United States do worry. They worry when they open the paper to a full-page advertisement meant to lure companies abroad; when they start to plan a product’s development, not knowing whether a credit will be in place; when they learn of a foreign competitor’s breakthrough and great new product, developed through government-encouraged R&D.
In today’s global economy, competition is a given and complacency the enemy. The time has come to recognize the R&D tax credit as a critical element of American competitiveness, one that should be a permanent feature of the U.S. tax code. It’s the smart thing to do.
READ MORE: https://riponsociety.org/article/incentive-and-inventive/