ELK RIVER/MINNEAPOLIS— Yesterday, Congressman Tom Emmer (MN-06) met with two Minnesota-based companies that would benefit from a strengthened tax credit for their investments in research and development. Last month, the House of Representatives passed the Tax Relief for American Families and Workers Act, which will restore manufacturers’ and Minnesota businesses’ ability to deduct research and development costs from their taxes in the year they are incurred.

Emmer said, “Every dollar spent on research and development costs for Minnesota businesses is an investment in our state’s future. The next big idea will probably come from Main Street; we must incentivize up-and-coming businesses to grow here at home. We were grateful to spend time hearing from the business owners and employees that would be supported by a strong R&D tax credit.”

Emmer started the day with a visit to the Elk River-based Sportech, whose 350 employees design, develop and manufacture accessories for sport vehicles like snowmobiles. He also visited the 100% employee-owned Resonant Cavity in Minneapolis, which develops software that can provide studio-quality audio processing on a smartphone or tablet.

“Restoring the ability of companies to expense payroll for engineers and software developers will support high-paying jobs, economic growth, and the continued success of the American tech sector,” said Patrick Flanagan, CEO of Resonant Cavity. “Without it, small American tech firms will struggle to compete against foreign rivals and against larger, better-capitalized incumbents. Whip Emmer’s backing of the bipartisan Tax Relief bill demonstrates a commitment to see small tech businesses in Minnesota thrive and grow."

Jim Glomstad, President of Sportech said, “We would like to express our sincere appreciation to Congressman Emmer for taking time to visit Sportech and engaging with our leaders on topics impacting MN businesses. We look forward to his continued support of Sportech, the manufacturing industry and MN employers.”

You can read more about Minnesota small businesses’ support for the R&D tax credit here.

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