The National Venture Capital Association (NVCA), a trade group representing startups and venture capital, voiced a similar position in a letter it wrote, calling for a research and development tax credit.

“A typical startup will still be quite early in the process of development when the size/age limits eliminate their ability to benefit from the R&D credit,” the group wrote.

“This creates a strange dichotomy where startup companies cannot access the benefits of the R&D credit when they need it the most,” the NVCA’s letter continued. “We believe that these improvements to the R&D credit will provide a fair and material benefit for American startups and will be a strong step forward in shoring up our leadership in entrepreneurship.”

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