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HP Welcomes Additional R&D Tax Credit Bill
Statement by Dan Kostenbauder, vice president, transaction taxes, HP
PALO ALTO, Calif., April 28, 2008
"HP welcomes the introduction of Senator Susan Collins' bill to extend and strengthen the research and development (R&D) tax credit. Extending and strengthening the R&D tax credit will allow companies to better plan how they invest in research and development in the United States and make the U.S. market for R&D spending stronger in the face of increased global competition.
"Investing in R&D in the United States with today's credit is like trying to pole vault with a pogo stick. The R&D tax credit offered by the United States, which expired on December 31, 2007, lags behind the more substantial credits offered by other countries. As a result, R&D spending by U.S. majority-owned companies in other countries jumped 49 percent between 1998 and 2003, while R&D spending in the United States rose just 23 percent.
"Senator Collins' bill will help lay the foundation for an innovation economy by encouraging American companies to invest in new technologies. By fostering innovation, we can drive economic growth and job creation for the long term. Bringing new, innovative products to market is the key for American companies to remain competitive in the global marketplace.
"HP urges Congress to provide a meaningful tax credit for companies that are committed to long-term technology innovation in the United States. This requires modernizing the R&D tax credit, restoring its effectiveness and making it permanent so there is a more predictable incentive for companies to commit R&D investments in the United States."
About HP
HP focuses on simplifying technology experiences for all of its customers - from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world's largest IT companies, with revenue totaling $107.7 billion for the four fiscal quarters ended Jan. 31, 2008. More information about HP (NYSE: HPQ) is available at http://www.hp.com.
© 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.
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