Washington, DC – Government Electronics & Information Technology Association (GEIA) President Dan Heinemeier joined several Members of Congress, other industry association leaders and the Research & Development (R&D) Credit Coalition on Capitol Hill today to show support for an immediate strengthening and extension of the R&D tax credit. This tax incentive, available to companies for R&D conducted within the U.S., is set to expire on Dec. 31. Heinemeier was joined at todays event by Vice Admiral (Ret.) Mike Bowman, Executive Vice President of Washington Operations for member company DRS Technologies, which develops defense technology and uses the R&D credit to increase its innovative capacity. “GEIA recognizes the magnitude of this tax credit, which provides incentive for private investment in high-risk innovation,” said Heinemeier. “And on behalf of our more than 120 member companies, we urge Congress to take action and send a strengthened, multi-year extension of the credit to President Bush before the end of the year.”

Among the Congressional Members joining Heinemeier, Bowman and others across the business community today was a key legislative advocate of an enhanced R&D credit, Senator Orrin Hatch (R-UT). Bills introduced this year by Senator Hatch, Senator Max Baucus (D-MT) and Representatives Sander Levin (D-MI) and Dave Camp (R-MI) would increase the value of the alternative simplified credit (ASC) and extend the traditional credit. Legislation passed by the House in November would provide a straight extension of the current credit for one year, and Heinemeier urged the Senate to provide a multi-year extension that would strengthen the credit.

“The technology companies that GEIA represents work on the cutting edge of innovation to provide advanced technologies used by the U.S. government in its military and civilian work,” said Heinemeier. “Extension of the R&D tax credit in a way that provides a benefit at commensurate rates for all companies is right in line with key GEIA principles.”

“Allowing this credit to expire would be a severe blow at a time when other countries offer a robust incentive to bring R&D activities oversea,” Heinemeier continued. Bowman added, “And in the case of a company like DRS, which does business almost entirely with the U.S. government, its not a matter of where we will do new R&D work – its whether we will do the work.” Bowman, who displayed DRS technology used by the U.S. military, also noted that the credit supports the creation of high-wage jobs in the federally focused IT, defense, and electronics industries. “A lapse in credit coverage will hinder our short- and long-term strategic planning, which has repercussions for the Defense Department and our other federal customers.”