FOR IMMEDIATE RELEASE

November 8, 2007

House Passes Key R&D Tax Credit

One-Year Extension a Step in the Right Direction for U.S. Competitiveness

Arlington, Va. - Telecommunications Industry Association (TIA) President Grant Seiffert applauded the U.S. House of Representatives for passing a one-year extension of the existing research and development (R&D) tax credit at a cost savings to companies of approximately $9 billion. The R&D tax credit extension was passed as part of H.R. 3996, The Temporary Tax Relief Act of 2007, which passed today by a vote of 216-193. While TIA has long advocated for a reformed and permanent R&D credit, the association is pleased that the House has acted to extend the current law, and we again urge Congress to make this issue a priority in the coming year. In the short term, passage of this extension allows companies to make decisions for next year's R&D work with the benefit of knowing that the incentive is in place.

"R&D is the cornerstone of U.S. competitiveness in our sector," Seiffert said. "The U.S. high tech industry is employing more people than it has since 2002, thanks in large part to R&D for future technologies and communications services. Research is the backbone of the communications industry, a building block for the development of advanced communications products and services." Seiffert elaborated, "This extension must be just a stopgap measure. Next year, Congress needs to look towards making this credit permanent -- the development of leading-edge communications applications is complex, requiring time, money and long-term vision; this is why a permanent credit is so critical. U.S. industry must be confident in the existence of a permanent R&D credit as it plans for significant investments."

TIA urges the Senate to extend the tax credit before the end of this session and encourages Congress to make the review of the R&D credit a priority next year, with the goal of creating a permanent credit at a 20 percent rate.

For more information about TIA's R&D advocacy efforts, please contact Ian Martinez at 703.907.7723 or imartinez@tiaonline.org.

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About TIA
For almost three decades, TIA has leveraged its global resources to create the best possible business environment within which our 500+ members can research, develop, manufacture, market and sell their products and services worldwide. The association accomplishes this through its expertise in standards, advocacy, business development, market intelligence, environmental compliance and information security. TIA is committed to expanding market opportunities while protecting and enhancing the reputation of the global communications industry with all its stakeholders. For more information, go to www.tiaonline.org.