SEMI Urges Swift Extension of R&D Tax Credit
R&D Tax Credit Could Lapse
WASHINGTON, D.C. – Wednesday, December 5, 2007 – Today, SEMI joined hundreds of other affected US companies and industry groups to strongly urge Congress to extend the R&D tax credit immediately. Congress may postpone until next year a tax extenders package that is expected to include an R&D tax credit extension of either one or two years. The current credit expires on December 31, 2007 and a delay would cause a lapse.
The semiconductor equipment and materials industry is highly dependent on R&D, and SEMI represents nearly 800 member companies in the US that provide thousands of high-wage paying jobs for Americans. These companies face some of the highest R&D costs due to the fast-paced and complex challenges of microelectronics. On average, they spend between 10 and 15 percent of their revenues on R&D for advanced semiconductor manufacturing processes and technology. Some industry segments, like lithography, incur even greater costs.
“We urge the Congress to extend the R&D tax credit without delay,” stated SEMI North America President, Victoria Hadfield. “We are pleased that Congress has made innovation a priority this year. The R&D tax credit is a key piece of the innovation agenda and it will lapse at the end of the year without an immediate extension. Now is the time to act.”
“The R&D tax credit is a vital incentive for companies to conduct their R&D in the United States.” Hadfield continued, “The United States was the first nation to establish a credit for R&D, but we now trail more than a dozen other countries that have established R&D tax credits with greater benefits to companies. SEMI supports a permanent credit so that high-tech companies can effectively plan for long term R&D.”
SEMI is the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries. SEMI member companies are the engine of the future, enabling smarter, faster and more economical products that improve our lives. Since 1970, SEMI has been committed to helping members grow more profitably, create new markets and meet common industry challenges. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C. For more information, visit www.semi.org.