The Electronic Industries Alliance (EIA) today embraced several innovation provisions included in a new fiscal year (FY) 2008 budget plan offered by top Democrats in the U.S. House of Representatives and urged lawmakers to fully fund the proposals through the appropriations process this year.

The budget resolution, expected to come before the full House for a vote this week, calls for significant investments in key areas of federal scientific research, education and space programs. Specifically the bill:

• Boosts the General Science, Space, and Technology budget (Function 250) – which includes research programs at the National Science Foundation, the National Aeronautics and Space Administration and the Department of Energy's science office – by $2 billion to $27.6 billion;
• Augments funding for additional Department of Energy research (Function 270) by $300 million over the president's request, at $3.2 billion; and
• Funds the Education, Training, and Employment budget (Function 500) at $92.5 billion, a level $7.9 billion higher than the president's request.

"Time and again, leaders from every sector of our industry have highlighted the need to step up federal investments in research and technology. Now, it looks like we're making real progress toward that goal," said Charlie Robinson, EIA's interim president and CEO. "These funds will help generate new ideas and develop more innovators here in the U.S. to bring those ideas to the marketplace. American workers and companies can't help but be more competitive as a result."

"House leaders see the value in these programs even in a year of extraordinary budget pressures," Robinson added. "We hope the House approves this funding this week and we urge congressional leaders to see these priorities through to the end of the appropriations process."

The House bill also includes a policy statement supporting extension of the research and development (R&D) tax credit, which is a key tax provision for many in the high-tech community. EIA supports a strong, permanent R&D credit of commensurate rate for all companies; a 20% simplified credit; and an extension of the traditional credit.

The budget legislation contains another statement, backed by EIA, reaffirming Congress' commitment to American innovation, education and economic growth.

EIA has long argued in favor of increased basic research and science, technology, engineering and math (STEM) education funding, two critical parts of the Alliance's competitiveness agenda outlined in the 2004 policy playbook, The Technology Industry at an Innovation Crossroads.

Earlier this year, Congress enacted smaller increases to these programs as it finished work on the FY 2007 budget. That action came soon after a Jan. 18 letter to House Speaker Nancy Pelosi, D-Calif., sent by EIA and other trade associations and corporations calling for the funding.