(Washington D.C.)- U.S. Reps. Sander Levin (D-MI) and Dave Camp (R-MI) today introduced the Investment in America Act of 2007, bi-partisan legislation to strengthen and make permanent the Research and Development Tax Credit.  Levin and Camp are both senior members of the House Ways and Means Committee.  Twenty-eight of their colleagues on the Committee joined them in introducing the legislation.

In the near term, a strengthened and permanent R&D tax credit provides a direct incentive for companies to create high paying jobs in engineering, research and technology, and in the long term, it fosters the innovative products and services that represent high paying jobs of tomorrow. 

 "To shape the path of globalization, we must provide an incentive for our businesses to make the investment in innovation that is key to U.S. prosperity and competitiveness. This bill creates a strong incentive for all companies to maintain and grow their R&D investments in the United States." said Levin. "For many large companies, the question is often not whether to invest in R&D, but where to invest.  For the smaller firms whose innovative ideas and products have the potential to give rise to entirely new industries, the R&D credit helps them afford to make these investments in the first place."

"Renewing, improving and making permanent the R&D credit is a critical component of our ability to compete in the global economy," said Camp.  "This incentive keeps jobs in the U.S. and keeps our manufacturers and small businesses on the cutting edge of technology.  Michigan is one of the largest users of this credit, and our economy and our workers need this shot in the arm."

Advancements made by US companies in diverse fields ranging from medical devices to software do not happen overnight. They involve years, sometimes decades, of expensive, labor-intensive research. For American businesses, the lack of a strong and certain R&D credit increases financial risks and could lead some to forgo additional research.  Some US firms may decide instead to conduct future research projects offshore - in countries with strong and stable incentives for research.

The Levin-Camp Investment in America Act addresses this challenge by strengthening and extending the R&D Tax Credit, thereby increasing the incentive for firms to invest in US-based R&D. The bill will provide all of the more than 10,000 companies who use the R&D Credit with the same strong incentive for investment by increasing the rate of the Alternative Simplified Credit to the same 20 percent rate that is currently available under the traditional credit.  Just as importantly, the legislation will make the credit permanent. Just last year the credit was allowed to expire for nearly 12 months before being retroactively extended. 

The Ways and Means Committee Members that joined Levin and Camp in introducing the Invest in America Act are: Reps. McDermott, Herger, Lewis (GA), Ramstad, Neal, Johnson, Pomeroy, English, Tubbs Jones, Weller, Larson, Hulshof, Emanuel, Lewis (KY), Blumenauer , Brady, Kind, Reynolds, Pascrell, Cantor, Berkley, Nunes, Crowley, Tiberi, Van Hollen, Porter, Schwartz, Davis. 

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