Statement by Aerospace Industries Association President and CEO David F. Melcher on the House voting to extend the R&D Tax Credit permanently.
Arlington, Va. — AIA welcomes the House vote to permanently extend the research and development tax credit which lapsed at the end of 2014. It provides an important incentive during these times of fiscal austerity for thousands of companies to make long-term investments in innovation and is critical to creating economic growth. Particularly at a time when DOD is actively seeking new sources of innovation, it’s imperative that we do everything in our power to incentivize companies in every sector to invest in innovative ideas and solutions.
This credit supports companies that invest working capital in basic research and in applied research aimed at the creation or improvement of products. More than 70 percent of the credit is used to fund the salaries of R&D workers who hold the kinds of high-quality jobs that fuel our national economy, with the remainder applied to investment in new plant and equipment.
Currently, the U.S. significantly trails other leading countries in providing incentives for companies to conduct research and development. Making this critical tool for spurring investment and innovation permanent helps maintain the American edge in innovation and provides companies with the certainty they need for long range planning. The House is to be congratulated for voting to ensure American companies can rely on this credit going forward and we encourage the Senate to pass the bill as soon as possible.
WASHINGTON, D.C. (House Leadership PR) – House Majority Leader Kevin McCarthy (R-Calif.) and House Science, Space, and Technology Committee Chairman Lamar Smith (R-Texas) today praised Senate passage of a bicameral, bipartisan agreement on H.R. 2262, the U.S. Commercial Space Launch Competitiveness Act. The bill consolidates language from the House-passedSpurring Private Aerospace Competitiveness and Entrepreneurship Act of 2015 or SPACE Act with provisions from S.1297, the Senate’s commercial space legislation. It provides much-needed guidance and regulatory certainty for America’s private space industry partners. (more…)
Rep. Dana Rohrabacher (R-CA) and Rep. Lamar Smith (R-TX) have begun to quietly campaign to replace Rep. Ralph Hall as chairman of the House Committee on Science, Space and Technology next year, according to Stu Witt, General Manager and CEO of the Mojave Air and Space Port.
Witt and his staff hosted a visit by Smith last week to familiarize the Republican Congressman with commercial space activities being undertaken at the California spaceport. Rohrabacher will be visiting the desert facility next Wednesday, Witt added during a meeting of the East Kern Airport District board.
Witt said the visits are part of an effort by both Congressman to build up support for their bids to replace Hall, will step down after six years as head of the powerful committee. Under House rules imposed by the Republican leadership, chairmen are limited to three, two-year terms.
We now know what the House has in mind for NASA’s “reconfigured” commercial crew program. I’ll let Rep. Frank Wolf, chairman of the House’s Science subcommittee, explain in his own inimitable way:
Commercial Crew development is funded at $500 million, consistent with the current authorization and the report accompanying the House Budget Resolution. In light of limited budgets and the need to find the fastest, safest and most cost effective means of achieving a U.S. capability for access to the International Space Station, the bill directs NASA to winnow the commercial partners and advance the schedule for moving to traditional government procurement methods.
The U.S. Senate Appropriations Subcommittee on Commerce, Justice, Science, and related agencies (CJS) has finished marking up the FY 2013 budget. Looks like much of the same, with money ladled on massively expensive programs and a $305 million reduction in the President’s request for commercial crew: [Update: The House has weighed in with its own budget, which does the same thing in a more extreme fashion — see below]
The National Aeronautics and Space Administration (NASA) is funded at $19.4 billion, an increase of $1.6 billion over the fiscal year 2012 enacted level. The large increase results from a reorganization of operational weather satellite procurement from NOAA into NASA. Without the funds for weather satellite procurement, this level represents a $41.5 million cut from the fiscal year 2012 enacted level.
Funding for the development of the Orion Multipurpose Crew Vehicle is $1.2 billion, the same as fiscal year 2012. Heavy lift Space Launch System (SLS) development is funded at $1.5 billion, $21 million less than fiscal year 2012. The bill also provides $244 million for construction needed to build, test, and operate Orion and SLS. Commercial crew development is provided $525 million, an increase of $119 million above fiscal year 2012.