WASHINGTON D.C. - The New Democrat Coalition pledged support to four legislative proposals this week: permanent extension of the Research and Development tax credit, relaxing export controls on encryption technology, extending the Ed-Flex program, and reforming bankruptcy laws.

The NDC, a 61-Member group of centrist, pro-growth Democrats, is the largest Members’ organization within the Congressional Democrats.

Permanent extension of the R&D tax credit is a top priority for the NDC. “New Democrats are committed to ensuring that our tax code encourages effective investments in innovative research and technology,” said NDC Co-Chair Cal Dooley (California). “Permanent extension of the R&D tax credit is an important step in that direction.”

New Democrats are uniting behind bipartisan legislation introduced by Representatives Bob Matsui (D-California) and Nancy Johnson (R-Connecticut) that will be introduced today. The legislation would permanently extend the credit and increase the incremental credit rates.

According to NDC Members, making the R&D tax credit permanent would greatly increase the tax credit’s impact. “The R&D tax credit is a proven and effective incentive to help stimulate economic growth through research and development of new technologies,” Representative Debbie Stabenow (Michigan) stated. “Permanently extending this tax credit will ensure that American businesses will remain competitive in the global economy. It is critical that Democrats and Republicans work together to pass this legislation.”

The New Democrat Coalition also supports the Security and Freedom through Encryption Act, introduced by Representatives Zoe Lofgren (D-California) and Bob Goodlatte (R-Virginia), to relax export controls on encryption.

The legislation would affirm the right of Americans to use and sell all levels of encryption technology. It also relaxes export controls on computer products with encryption so that American firms can compete against foreign companies.

“Our self-imposed restriction on encryption exports is disadvantaging U.S. software companies and threatening our competitiveness in this emerging new technology,” said Representative Adam Smith (Washington). “If our export ban actually kept the technology away from criminals, that would make sense. But that’s not the case — the encryption technology is still available to whoever wants it, but U.S. firms can’t sell it. Companies like Microsoft and Web TV are the worldwide leaders in information technology, but they are losing customers because our government isn’t letting them sell high-level encryption software.”

Expanding Ed-Flex is also a top NDC priority. Ed-Flex, currently a pilot program operating in 12 states, allows states to waive certain statutory and regulatory requirements. All 50 governors support the Roemer-Castle legislation, which would expand Ed-Flex to every state.

Roemer said he is optimistic about passage of Ed-Flex early this year. “Ed-Flex enjoys strong bi-partisan support, and I think it has a good chance of becoming law. It’s a great opportunity for Democrats and Republicans to work together to improve public schools.”

The New Democrat Coalition also threw support behind legislation sponsored by Representatives George Gekas (R-Pennsylvania), Rick Boucher (D-Virginia), Bill McCollum (R-Florida), and Jim Moran (D-Virginia) to reform bankruptcy laws. The bill would require debtors who have the ability to pay a portion of their debts to do so.

“Our bankruptcy reform legislation strikes a fair balance between giving consumers the chance to make a truly fresh start, and assuring that the process isn’t abused or exploited,” NDC Co-Chair Jim Moran said. “It makes personal responsibility a cornerstone of personal bankruptcy laws.”