The following statement can be attributed to Chris Mohr, President, the Software & Information Industry Association (SIIA).
As Congress negotiates the FY2025 budget resolution, we urge members to focus on the importance of smart tax policy in ensuring the success of the U.S. tech sector. No country matches the United States when it comes to private sector R&D and in order to maintain this dominance, SIIA and its members believe strongly that tax credits for R&D expenses and incentives for developing infrastructure, like data centers, are essential to drive AI innovation. We also support making permanent the foreign-derived intangible income (FDII) deduction. The FDII deduction has helped to reshore critical IP to the United States and we worry that allowing the FDII to lapse will undermine our innovation economy.
We also urge the Administration to take steps to stem the proliferation of discriminatory tax treatment in foreign nations. Digital services taxes (DSTs), now in eight countries, whether by design or not, have a disproportionate impact on U.S. tech companies and hurt downstream consumers in America and around the world. These DSTs are not based in sound tax principles and penalize companies based on their success rather than income derived in foreign jurisdictions.
