IPC Government Relations Committee Urges Industry to Pursue R&D Tax Credit for Lead Free Implementat
The Government Relations Committee of IPC — AssociationConnectingElectronics Industries® today released a whitepaper, “TheResearch and Development Tax Credit or How your companycould belosing hundreds of thousands of dollars (by not takingadvantage ofthe R&D Tax Credit provisions).” The paper explainshowexpenses associated with the conversion to RoHS andlead-freeassembly might qualify under the Federal Government’sResearch andExperimentation Tax Credit, as it is formally called,to reduce acompany’s tax obligations. According to Fern Abrams, IPC director of governmentrelationsand environmental policy, the purpose of the white paperistwo-fold. “First, the Committee wanted to ensure that companiesinour industry understood how they could be saving thousands, ifnothundreds of thousands of dollars, by taking some time todocumentexpenditures they’ve made in innovation andimprovements. R&D is not limited to classiclaboratory-type research as manybelieve, but includes processimprovements such as those theindustry has undertaken to complywith lead free regulations.”Examples of qualified researchexpenditures that are oftenoverlooked include wages paid to lineemployees involved inresearch activities, such as the evaluation oflead-free solders orsurface finishes; and costs in qualityassurance, engineering,product design and in-house softwaredevelopment.
A second impetus for the distribution of the white paper istoask the industry to help urge Congress to extend the taxcredit,which expired on December 31, 2007. “IPC members canbenefitsignificantly, and gain a reprieve from their continuedinvestmentsin lead free conversion, if Congress would instill apermanent taxcredit that companies could then plan for and relyupon,” addsAbrams. “However, achieving an extension from Congressin anelection year will require a concerted effort by allpartiesinvolved.”
Posted by IPC