Arlington, Va. - The Electronic Industries Alliance (EIA) and the Telecommunications Industry Association (TIA) expressed disappointment this morning over the fact that Congress was unable to agree on legislation to seamlessly extend and enhance the research and development (R&D) tax credit before leaving for the August recess. The credit, used by thousands of companies in high-growth sectors of the U.S. economy, expired at the end of 2005.

"We want to thank the many members of Congress, on both sides of the aisle, who have been strong champions of this critical research and development tax incentive," said EIA President & CEO Dave McCurdy and TIA President Matt Flanigan. "We know that the votes taken over the past week in the House and Senate did not reflect a lack of support for the credit, but it is nonetheless extremely disappointing to see another Congressional deadline pass without a bill sent to the President.

"By the beginning of September, when Congress returns, companies will have languished for more than eight months in an uncertain situation as they try to plan for future research projects and investment. This is not the way to foster innovation in this country. This is not the way to create high-skilled, high-paid jobs in this country. This is not the way to foster a competitive business landscape in this country.

"We hope that Congress will find a way to enhance and seamlessly extend the credit for as long as possible as soon as they return in September. We look forward to working in any way we can with the Members who have supported this provision for so long."

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