Here we go again! The on-again, off-again R&D tax credit is once again being debated in Congress. The House of Representatives passed a bill in May with a 274-145 vote permanently extending the credit. While the bill hasn't yet been addressed in the Senate, the U.S. Senate Finance Committee passed bipartisan legislation on July 21 by a vote of 23-3 to extend the credit as well as provide startup companies and small businesses greater access to it. Congress has been extending the R&D tax credit "on a stop-and-go basis for almost 35 years," commented an article in The Hill. That is one of the primary problems with this program.
Paul Ryan (R-Wis.), a big supporter of the R&D tax credit, is quoted as saying in The Hill: "This is something we think ought to be a permanent feature of our tax code." And there are a lot of others who agree with that line of thinking.