President Barack Obama has called on Congress to approve a permanent research and development tax credit for US companies as part of a multibillion dollar package intended to jump start the US economy.

President Obama, in a speech in Cleveland in September asked Congress to make permanent an R&D tax credit that has lapsed 13 times since 1981. The President would pay for the proposal by closing what he called some “tax loopholes” in other areas.

A recent study conducted by member firm Mazars evaluated the cost of global R&D initiatives after tax and other cost incentives in 20 countries. Of the 20 countries examined, 8 with attractive R&D tax regimes were analysed in depth to ascertain the most effective tax rate for companies making R&D investment. The US had an effective tax rate of 32%, making it the least competitive of these 8 countries.

Ireland is among the world's most competitive locations for research and development investment, according to the Mazars study and ranked second among the 8 countries analysed in depth.

Full details of President Obama's speech are available at http://www.whitehouse.gov/the-press-office/2010/09/08/remarks-president-economy-parma-ohio