Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
House GOP passes permanent R&D tax cut
Author: Scarinci Hollenbeck, LLC
Date: May 27, 2014
Key Contacts
Back
Despite fierce opposition, House Republicans brought 62 Democrats over to their side to pass a bill that would make permanent R&D tax cut, according to MSNBC. The legislation passed in a 274-131 vote on the morning of May 9, amid significant lobbying and a threat from the White House to veto the bill.
The bill has been called a policy ‘no brainer’ because both sides agree on the need for a permanent incentive for American companies to conduct R&D, the news source explained. Republicans and Democrats disagree on how the cut should be implemented, and this disagreement has put both sides in an interesting position.
Democrats argue that the Republicans, who have spent a lot of time in recent years campaigning against any spending that isn’t paid for by a reduction somewhere else, do not have the same reservations when it comes to corporate tax breaks.
“Both parties, as the Chairman has indicated, have repeatedly supported temporary extensions, but neither have had the audacity to come to this floor and say ‘we’re going to borrow enough to make it permanent, without closing a single loophole,'” Rep. Lloyd Doggett said on the House floor. “This bill represents only the first of many installments of hundreds of billions of dollars that the Republicans plan to finance with more debt, borrowing from the Chinese, or whoever will lend it to us.”
The research credit was enacted first in 1981, according to Bloomberg. During that time, it has existed in a perpetual state of lapse and renewal, as have a number of other tax breaks. Many lawmakers on both sides of the aisle argue that the uncertainty created by this cycle has prevented companies from relying on it, damaging its effectiveness.d
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
House GOP passes permanent R&D tax cut
Author: Scarinci Hollenbeck, LLC
Despite fierce opposition, House Republicans brought 62 Democrats over to their side to pass a bill that would make permanent R&D tax cut, according to MSNBC. The legislation passed in a 274-131 vote on the morning of May 9, amid significant lobbying and a threat from the White House to veto the bill.
The bill has been called a policy ‘no brainer’ because both sides agree on the need for a permanent incentive for American companies to conduct R&D, the news source explained. Republicans and Democrats disagree on how the cut should be implemented, and this disagreement has put both sides in an interesting position.
Democrats argue that the Republicans, who have spent a lot of time in recent years campaigning against any spending that isn’t paid for by a reduction somewhere else, do not have the same reservations when it comes to corporate tax breaks.
“Both parties, as the Chairman has indicated, have repeatedly supported temporary extensions, but neither have had the audacity to come to this floor and say ‘we’re going to borrow enough to make it permanent, without closing a single loophole,'” Rep. Lloyd Doggett said on the House floor. “This bill represents only the first of many installments of hundreds of billions of dollars that the Republicans plan to finance with more debt, borrowing from the Chinese, or whoever will lend it to us.”
The research credit was enacted first in 1981, according to Bloomberg. During that time, it has existed in a perpetual state of lapse and renewal, as have a number of other tax breaks. Many lawmakers on both sides of the aisle argue that the uncertainty created by this cycle has prevented companies from relying on it, damaging its effectiveness.d