AIA Calls on Conference Committee to Address R&D Tax Change, Semiconductor Chip Shortage
May 11, 2022
Arlington, Va. (May 11, 2022) – Today, the Aerospace Industries Association (AIA) President and CEO Eric Fanning released the following statement ahead of the first conference committee meeting on the Bipartisan Innovation and Competition Legislation:
“The conference committee meets at a time when America’s competitive edge is the most essential it has ever been, but the headwinds against us are also the strongest. AIA is thankful for the Members of Congress leading this effort to enable critical investments in research and development (R&D), the domestic manufacturing base, and America’s workforce. We urge the conferees to work to find common ground, come to a swift agreement, and take every opportunity to support our national security and ensure America remains competitive.
“To help strengthen domestic manufacturing and workforce, this conference is an opportunity to leverage private investments with public investments by reversing course on a major tax law that disincentivizes critical American R&D. Today, 71 percent of U.S. R&D spending originates in the private sector and nearly 70 percent of that is spending is used for salary and wages. Meanwhile, the Chinese government is doubling down on incentives for innovation. In 2020, China set a record high of R&D spending totaling $378 billion. This surge in spending and tax law change has huge implications for the future of our workforce, economy, national defense, and global leadership.
“The conference committee also must address the global semiconductor chip shortage, which affects many industries and our national security. Strategic investments in our domestic semiconductor manufacturing base will support American jobs and strengthen our global leadership in chip technology for years to come.”