credit for qualified research expenses and generally increase the associated credit to 20 percent of those expenses that exceed 50 percent of the average qualified research expenses for the three preceding taxable years. It also makes permanent a tax credit for basic research and energy research and changes the base period for the basic research credit from a fixed period to a three-year rolling average. The staff of the Joint Committee on Taxation (JCT) estimates that enacting H.R. 4438 would reduce revenues, thus increasing federal deficits, by about $156 billion over the 2014-2024 period. The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending and revenues. Enacting H.R. 4438 would result in revenue losses in each year beginning in 2014. The JCT has determined that the bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. Procedural history The American Research and Competitiveness Act of 2014 was introduced into the United States House of Representatives on April 9, 2014 by Rep. Kevin Brady (R, TX-8). The bill was referred to the United States House Committee on Ways and Means. The bill was reported (amended) on May 2, 2014 alongside House Report 113-431. On May 6, 2014, the Obama Administration released a statement that "if the President were presented with H.R. 4438, his senior advisors would recommend that he veto the bill." Debate and discussion President Obama's office released a statement that said that the Administration "supports enhancing, simplifying, and making permanent the Research and Experimentation Credit... and offsetting the cost by closing tax loopholes," but that it "strongly opposes House passage of H.R. 4438, which would permanently extend and expand the R&D credit without offsetting the cost, adding to long-run deficits." The National Taxpayers Union (NTU) "urged" Representatives to vote in favor of the bill because it "would simplify and make permanent the 20 percent tax credit for research and development expenses." The NTU argued that making this tax credit permanent was "an important step toward creating a healthier business climate, providing broad-based relief, and promoting economic growth." The NTU also argued that it was important for the credit to become permanent because major research and development investments often take multiple years to do and it can be difficult to plan them when a tax credit is only going to last for one or two years. Americans for Tax