Arlington, Va., Oct. 11, 2004 – The Electronic Industries Alliance (EIA) commended the U.S. Congress today for its passage of the Jumpstart Our Business Strength (JOBS) Act and its work to improve corporate competitiveness. EIA believes the legislation contains important provisions that will lead technology manufacturers to invest further in U.S. employees, capital equipment and research.

“The JOBS Act will help America maintain its leadership position among the innovation nations around the world by spurring U.S. investment through economic incentives,” EIA President Dave McCurdy said. “Countries worldwide are creating friendlier business climates by reducing tax rates, and this legislation is a step towards doing the same in the U.S.”

First and foremost, the bill will repeal the FSC-ETI benefit and provide a much-needed incentive for domestic manufacturers. Also among the provisions included in the bill is a one-year reduction in the corporate tax rate for foreign earnings brought back to the U.S. for reinvestment, a provision that could lead to an inflow of up to $425 billion and greatly benefit the U.S. economy. An extension of the foreign tax credit carryforward period from five years to 10 years will prevent double taxation on income taxed overseas and, along with several other international tax reform measures, allow U.S. companies to compete more effectively around the globe.

“We appreciate the efforts of House and Senate members from both sides of the aisle who worked hard to bring this legislation to the President’s desk,” McCurdy said. “We look forward to seeing President Bush sign this bill into law and help encourage more U.S. innovation.”

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About EIA: The Electronic Industries Alliance is the leading advocate for the U.S. high-tech industry in Washington, DC. Its 2,500 member companies provide products and services ranging from microscopic electronic components to state-of-the-art defense, space and industry high-tech systems, as well as the full range of telecommunications and consumer electronic products. EIA’s mission is to promote the market development and competitiveness of the U.S. high-tech industry through domestic and international policy efforts.