R&D and Jobs Bill

As expected, the Senate Finance Committee's draft jobs bill released Thursday includes language that would provide a one-year extension of the research and development tax credit, retroactive to Dec. 31, 2009, when it expired.

The measure also would provide an extension of satellite television licensing provisions that expire on Feb. 28. Senate Finance Chairman Max Baucus, D-Mont., and Finance ranking member Charles Grassley, R-Iowa, said in a joint statement that "action on the expired provisions is long overdue. Timely action on incentives for economic activity and job creation also is needed." The R&D tax credit and other business tax breaks expired at the end of 2009 when the Senate failed to take up legislation extending those provisions, which the House passed. The issue is a key priority for technology and other companies that do research in the United States. Tech groups have been urging lawmakers to make the R&D credit permanent and update it to keep pace with research incentives offered by other countries.