WASHINGTON, DC – A coalition of advocates for the startup ecosystem today expressed their strong support for the IGNITE American Innovation Act, introduced by Reps. Dean Phillips (D-MN) and Jackie Walorski (R-IN). The coalition organizations include: The National Venture Capital Association, Biotechnology Innovation Organization, TechNet, AdvaMed, Center for American Entrepreneurship, Medical Device Manufacturers Association, Angel Capital Association, and Technology Councils of North America.
“On behalf of startups, their 2.27 million workers, and investors, we are thrilled to endorse the IGNITE American Innovation Act, the most significant pro-startup proposal under consideration during economic recovery package negotiations,” said the coalition of startup advocates. “This bill will create jobs and sustain critical economic activity immediately, activity that will pay long-term dividends to American workers and the U.S. economy through greater innovation and market competition, and the creation of more cutting-edge U.S. companies. We commend the strong leadership of Reps. Phillips and Walorski during this crisis and look forward to working to include the IGNITE American Innovation Act in an upcoming economic recovery package.”
The legislation will provide immediate liquidity to startups by allowing them to monetize certain tax assets. Specifically, the bill will allow companies with less than 1,500 employees to monetize up to $25 million in net operating loss (NOL) carryforwards and R&D credits, and provide a bonus for tax assets generated by research and production of technologies intended to prevent, diagnose, and treat COVID-19.
Read the full letter here.
The National Venture Capital Association (NVCA) empowers the next generation of American companies that will fuel the economy of tomorrow. As the voice of the US venture capital and startup community, NVCA advocates for public policy that supports the American entrepreneurial ecosystem. Serving the venture community as the preeminent trade association, NVCA arms the venture community for success, serving as the leading resource for venture capital data, practical education, peer-led initiatives, and networking. For more information about NVCA, please visit nvca.org.