Arizona Technology Council Champions Research and Development Income Tax Credit;
DATELINE: PHOENIX
In a move that underscores its unrelenting support of Research and Development(R&D) income tax credits, theArizona Technology Councilannounced that it is championing the passage of Arizona State Senate BillSB1434and Arizona House of Representatives BillHB2653today. The matching legislation is designed to stimulate innovation and foster global competitiveness in Arizona based firms.
"Make no mistake, Arizona must compete with the rest of the world," said Steven Zylstra, president and CEO of the Arizona Technology Council. "Arizona policy makers made several important decisions in recent years to help foster an innovative environment. They now have the opportunity to support a policy that will strongly encourage the very activity at the center of innovation-research and development."
Subject to legislative approval, the bills seek to intensify Arizona's focus on R&D by providing a modest increase in the current tax credit for qualified research and development done in Arizona of two percent a year phased-in over a two-year period. In addition, the legislation eliminates the competitive disadvantage Arizona currently has with California's R&D tax credit.
The positive effects of state R&D tax credits are numerous. In a report titled "Beggar Thy Neighbor? The In-State, Out-of-State, and Aggregate Effects of R&D Tax Credits," the Federal Reserve Bank of San Francisco found that state R&D tax credits stimulate a relocation of R&D from states with less generous credits to states with more generous ones. In addition to encouraging business owners, entrepreneurs and investors to take risks in Arizona, R&D tax credits encourages further investment in private sector R&D as well as public-private collaboration with Arizona's research universities.
"The economic impact of R&D spending by businesses delivers substantial impact far beyond any potential lost state revenue," saidDr. Michael Berens, chairman, Arizona Technology Council and director, Cancer and Cell Biology Division, TGen-Translational Genomics Research Institute. "It is imperative that Arizona encourages business growth at every level-small companies just getting started to multi-national corporations already investing hundreds of millions of R&D dollars in Arizona."
About the Arizona Technology Council
Since its inception in 2002, the Arizona Technology Council has stood as the largest association of technology companies in Arizona, whose shared vision is for the state to be recognized as a top-tier center for technology-based businesses. The Council works tocarry out this visionby driving partnerships, policies and programs that advance the business climate for Arizona's technology community. By representing, supporting and advocating for member companies through initiatives, advocacy, networking and effective communications, the Arizona Technology Council has had tremendous success in moving Arizona towards becoming a top-tier technology state. The Arizona Technology Council represents 35,000-plus employees at more than 450 of the leading technology companies across Arizona. Represented industries include advanced manufacturing, aerospace, biotechnology, e-learning, environmental technology, software, Internet applications, semiconductors and telecommunications. To become a member or to learn more about the Arizona Technology Council, please visithttp://www.aztechcouncil.org
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