WASHINGTON, DC – The National Venture Capital Association (NVCA) issued the following statement today after House Republicans unveiled their draft tax reform legislation.
“We view tax reform as a unique opportunity to encourage new company formation by modernizing the tax code to better reflect the realities of the entrepreneurial business model,” said Bobby Franklin, President and CEO of NVCA. “We are pleased the House Ways and Means Committee heard our message and is preserving several issues important to the entrepreneurial ecosystem, including Qualified Small Business Stock Rules and the R&D credit payroll offset. We are also pleased to see the inclusion of an NVCA-backed proposal to allow startup employees to defer taxes on their exercised stock options without a liquid market to sell them. As the process unfolds, we look forward to engaging with lawmakers on other ways tax reform can encourage new company formation, as well as reinforce for them the importance of long-term patient investment when considering changes to the taxation of carried interest capital gains.”