Arlington, Va. - Today, both the Electronic Industries Alliance (EIA) and the Telecommunications Industry Association (TIA) released the following statement after reports indicated that Congressional conferees planned to eliminate the extension of the R&D tax credit from the pending pension reform conference report:

"This critical tax credit expired seven months ago, and in order to continue accelerating innovation in this country, Congress needs to seamlessly extend it as quickly as possible.

"Other countries have been investing heavily in research and development, and the failure to extend this important provision would be devastating to American companies' ability to compete in today's global economy. This tax credit makes it possible to expand innovation in a more cost-effective way, allowing American companies to invest in future technologies.

"A gap in the credit means real money for real companies that have been operating in a highly uncertain environment this year. It is in the interest of the U.S. high-tech industry and the economy that Congress seamlessly extend and strengthen the R&D tax credit before the August recess."

Contact Name: Larry Farnsworth
Contact Email: lfarnsworth@eia.org