Building Careers and Shaping Public Policy

25 May 2005

The Honorable Charles E. Grassley
Chair, Senate Finance Committee135 Hart Building
United States Senate
Washington, DC 20510

Dear Chairman Grassley:

I am writing on behalf of the Institute of Electrical and Electronics Engineers-United States of America (IEEE-USA) to urge you to permanently extend the Research and Development (R&D) tax credit. We are encouraged that President's Budget Request for fiscal year 2006 includes a permanent extension of the tax credit, and endorse the President's supporting rationale that "R&D is critically important for keeping our nation economically competitive. It will help solve the challenges we face in health, defense, energy, and the environment."

The current R&D tax credit is scheduled to expire on December 31, 2005 and has been extended eleven times since first enacted in 1981. The uncertainty created by these short-term extensions inhibits companies from investing in critical long-term, high-risk research projects of the type which have historically shown tremendous payoffs in economic growth, productivity gains and jobs. The tax credit is an essential incentive for companies to help mitigate the risk of investing in research that may not be realized in profitable products for many years to come, but will ultimately make America more competitive in the emerging global market.

Several bills or amendments have been introduced in both the House and the Senate that would accomplish this important task (e.g., H.R.1736 and S.627). The broad bipartisan support for the R&D Tax Credit was demonstrated in the last Congress with 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. We urge Congress to select an appropriate legislative vehicle and act now to make the tax credit permanent.

Thank you for your attention. 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. If we can be of any assistance, please contact Bill Williams at 202-785-0017.

Sincerely,

Gerard A. Alphonse
President, IEEE-USA

(Sample – Similar letters sent to members of the
Senate Finance and House Ways & Means Committees)