Washington, D.C.– Congressman Erik Paulsen (MN-03) joined a group of bipartisan colleagues to pass the American Research and Competitiveness Act by a vote of 274-145. Paulsen voted in favor of the bill, H.R. 880, that strengthens, modernizes, and permanently extends the Research and Development (R&D) tax credit. Since 1981, the R&D tax credit has been extended on a short-time basis 16 different times – often retroactively. The Joint Committee on Taxation estimates that American companies would increase research and development by 10 percent if the credit is permanently extended.

“Washington is putting American businesses in a bind by not giving them the certainty in the tax code they need to invest and grow,” said Paulsen. “In fact, the U.S. is the only country in the world that allows important parts of our tax code to expire on a regular basis. Making the R&D tax credit permanent encourages businesses to expand their investments, increase innovation, and create jobs.”

Paulsen spoke on the House floor in favor of the legislation and pointed out that R&D is the life-blood for over 400 medical device companies located in Minnesota. Most of these businesses offer well-paying, high-tech jobs. According to the National Association of Manufacturers, 70% of credit dollars are used to pay salaries of R&D workers. Video of Paulsen speaking is available here.

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, serves on the House Ways and Means Committee, the bicameral Joint Economic Committee, and is co-chair of the Congressional Medical Technology Caucus.

For more information on Congressman Paulsen’s work in Congress visit paulsen.house.gov. 

###