Peters Breaks with Party to Support Domestic Innovation, Technology and Manufacturing

WASHINGTON, DC – Today, in a bipartisan and independent vote, U.S. Representative Gary Peters supported the American Research and Competitiveness Act, a measure designed to simplify and strengthen the U.S. research and development (R&D) tax credit. The bill passed the House of Representatives by a vote of 274 to 131. In his statement, Peters urged for more bipartisan action to encourage economic growth here at home through smart and effective policies like R & D tax credits:

“Michigan has a long and powerful history of technology and innovation, but without the right policies to support research and development, we could lose these jobs to foreign competitors. Our engineers, innovators and manufacturers deserve a modernized R & D tax system so they can invest right here at home to create good paying, middle class jobs,” Peters said. “Supporting this measure is common sense and moves our country and Michigan’s economy in the right direction. We need to continue to find bipartisan ways to create certainty in our economy for the American companies that are creating jobs in the U.S., jobs for middle class folks in Michigan.”

The American Research and Competiveness Act creates certainty for companies that perform research and development in the Unites States by increasing the “alternative simplified credit” from 14% to 20% and making it permanent. The credit would apply equally to all companies that perform R&D in the United States and gives them the confidence and certainty to make long-term research and development investments. Increasing the alternative simplified credit rate to 20% would allow companies to increase their current R&D spending, attract new R&D spending and create jobs here in the United States.

Peters is an outspoken champion for domestic manufacturing and job creation in Michigan. He is co-chair of the Congressional Caucus on Innovation and Entrepreneurship and has helped create two successful small business programs, the State Small Business Credit Initiative (SSBCI) and the Small Business Lending Fund (SBLF), which have been credited with helping to leverage millions in private investment, spurring small business growth and creating thousands of jobs in Michigan. Most recently, he has been leading efforts to stop an unfair innovation tax on Michigan entrepreneurs, gathering support to petition the Office of Management and Budget to exempt the U.S. Patent Office from sequester cuts.

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