Building Careers and Shaping Public Policy

23 March 2004

The Honorable Ted Stevens
United States Senate
Washington, DC 20510

Dear Senator Stevens:

I am writing on behalf of the Institute of Electrical and Electronics Engineers-United States of America (IEEE-USA) to urge your support for legislation to permanently extend the Research and Development (R&D) tax credit. The R&D tax credit directly supports economic prosperity and high standards of living for American workers through the fundamental link between basic research, innovation and increasing the number of high-paying jobs.

This tax credit provides companies a critical, effective and proven incentive to maintain and increase their investment in U.S.-based research and development. Several bills or amendments have been introduced in both the House and the Senate and by members of both sides of the aisle that would accomplish this important task (H.R.428, H.R.463, and S.644 among others). The broad bipartisan support for this legislation was demonstrated in Senate Amendment 2651 to the Jumpstart Our Business Strength (JOBS) Act (S.1637) to extend and modify the tax credit, which passed by voice vote on March 4, 2004.

IEEEE-USA sincerely appreciates the efforts of the Senate to ensure the continuity of the R&D tax credit; however, we feel that all of the compelling arguments that are made for extending the credit also apply for making it permanent. The tax credit, which is due to expire on June 30, 2004, was first enacted in 1981 and has been extended ten times. Continued growth of our economy is inextricably tied to the ability of companies to make a sustained commitment to long-term research, which can only be accomplished in an environment to be provided by a permanent extension of the tax credit. Please support legislation to make the R&D tax credit permanent.

IEEE-USA is an organizational unit of The Institute of Electrical and Electronics Engineers, Inc., created in 1973 to advance the public good, while promoting the careers and public-policy interests of the more than 225,000 electrical, electronics, computer and software engineers who are U.S. members of the IEEE. The IEEE is the world's largest technical professional society.

Thank you for your attention. If you have any further questions, please contact Bill Williams at 202-785-0017 ext. 8331.

Sincerely,

John W. Steadman , Ph.D., P.E.

The same text was sent individually by fax to Members of the Senate and House Leadership, Senate Committee on Finance, House Ways and Means Committee.