I have successfully advocated for extension of the Research and Experimentation Tax Credit during my time in the Senate, and its continued extension is needed to spur the next generation of American innovation and help protect Virginia jobs. This tax credit is important for our Virginia businesses, particularly those engaged in information technology, telecommunications, manufacturing, computer software, aerospace, and energy. 

The lapse of this tax credit could cost the American economy tens of millions of dollars per day, as companies delay or cancel R&D related activities.  Failure to renew the tax credit would allow our foreign competitors to attract researchers and facilities at the expense of U.S. research.  As a result we could see more Americans lose their jobs.

Virginia is home to more than 200 private sector R&D companies and more than 30 federal R&D facilities. These institutions traditionally provide stable, high-paying jobs that have strengthened not only Virginia’s business sector, but also our families and communities. In fact, many partner with universities such as Virginia Tech to provide future opportunities for our students. The Commonwealth of Virginia is among the top states ranked by number of firms engaged in R&D activity.  Virginia’s industrial R&D activity totals over two billion dollars per year. 

 

I am working with my colleagues from both sides of the aisle to renew the R&D Tax Credit and to keep our R&D sector competitive.