NMITSA Supports the Permanent Extension of the R&D Tax Credit
The New Mexico Information Technology & Software Association (NMITSA), the largest technology organization in New Mexico representing over 10,000 information technology employees across New Mexico, supports making permanent the “Research and Experimentation Tax Credit,” also known as the R&D Tax Credit.
While critical to the competitiveness of the United States, R&D is the principal economic activity of technology industries in New Mexico, therefore changes in this policy impact the state’ economy profoundly.
The temporary extension of the R&D credit creates uncertainty in the business planning process; making it permanent provides incentive for companies to structure additional R&D activities without trepidation of unknown tax risk.
The competitive basis of the United States is at stake. Technologically competitive nations across the globe are learning to compete on the basis of reducing R&D costs. Skilled workforces and the provision of infrastructure are attractive incentives; the United States must aggressively defend its R&D base by leveling the playing field.
NMITSA supports the permanent extension of the R&D Tax Credit to help the technology sector in the United States keep increasing its research and development investments in the long-term without fear that the credit suddenly may disappear.
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The New Mexico Information Technology and Software Association (NMITSA) is a statewide information technology and software industry advocacy organization that provides focused, value-added services and initiatives to both industry and associate members. While programming is targeted to commercial enterprises that operate in the software, computer hardware, internet-related and telecommunications sectors, New Mexico’s entire business community stands to significantly benefit from NMITSA’s organizational
