FROM THE OFFICE OF PUBLIC AFFAIRS

The tax legislation that President Clinton signed into law today, the Tax Relief Extension Act of 1999, is a significant step forward for the American economy and for American families. A highlight of this legislation is the longest extension of the R&E credit in many years. This five-year extension will, for the first time in this decade, enable businesses to plan securely, on a long-term basis, their research and experimentation priorities. Our economy has enjoyed substantial increases in productivity growth in recent years and much of the reason why is that technology in turn derives from research and experimentation.

The legislation also protects middle-income taxpayers from having their personal tax credits, such as the HOPE scholarship credit, limited by the alternative minimum tax.

Other important provisions, extended through to the end of 2001, include specific tax measures designed to:

• improve school facilities in under-served communities;
  
• encourage employers to pay for workers continuing education;
  
• help disadvantaged workers and those on welfare to find jobs;
  
• provide economic relief and opportunity in Puerto Rico;
  
• encourage businesses in certain areas to cleanup brownfields;
  
• aid first-time homebuyers in the District of Columbia; and,
  
• stimulate low and no emission production of power through wind and biomass energy.

This legislation is a good example of what can be accomplished when we work together. It does what we need to do to maintain the benefits in our tax system and does so in a way that is fiscally responsible.