BANNOCKBURN, IL – IPC and Information Technology Industry Council (ITI) are applauding the US Congress for enacting meaningful tax reform legislation, including making the research and development tax credit permanent.

The Protecting Americans from Tax Hikes (Path) Act would revive more than 50 temporary tax provisions that expired in 2014.

IPC President and CEO Dr. John W. Mitchell sent a letter to all members of Congress on the morning of the vote, urging them to support the bill for a permanent R&D tax credit.

“Despite the U.S. economy’s overall recovery, the US manufacturing sector is facing potentially strong headwinds,” Mitchell wrote. “Now, more than ever, US manufacturers need the kind of long-term business incentives this bill provides. By permanently extending the R&D tax credit, and expanding its utility to small enterprises, the Path Act embraces the notion that US companies that are encouraged to innovate will be more competitive in the global economy.”

Similarly, in a letter to senators, ITI emphasized how a permanent R&D credit would give businesses the certainty and incentive needed to innovate, while extension of the CFC Look-Through would allow US companies to remain competitive in the global marketplace.

In addition to the R&D tax credit, the bill also includes permanent enhanced expensing for smaller manufacturers, providing annual writeoffs of up to $500,000 for investments in equipment and machinery, and a multiyear extension of bonus depreciation (50% first year expensing).