New Tax Bills Will Increase Investment in COVID-19 Solutions and Improve American Competitiveness

WASHINGTON, DC – The National Venture Capital Association (NVCA), TechNet, and the Center for American Entrepreneurship (CAE) are pleased to see the introduction of several tax policy measures designed to increase investment in solutions to the public health crisis caused by COVID-19 and to support the long-term health of the startup ecosystem. NVCA, TechNet, and CAE strongly support new policies that can effectively impact the unique business model of patient long-term investment into research and growth activities commonly found in the American startup ecosystem. Specifically, the American Innovation Act will improve our long-term competitiveness by making capital-intensive investment relatively more attractive. Other bills build on the success of the research and development tax credit to provide liquidity and encourage investment in startups focused on solutions to the COVID-19 pandemic.

“We are pleased to see policymakers design policies that fit the unique business model of high-growth startups,” said Bobby Franklin, President & CEO of NVCA, and Linda Moore, President and CEO of TechNet. “Whether we are talking about fighting the COVID-19 pandemic, making the U.S. more competitive on the global stage, or building the country for a better tomorrow, improving the tax treatment of investment in research and growth will pay enormous dividends for our economy and help create jobs. We thank Representatives Brady, Buchanan, Kelly, and Nunes for their leadership and look forward to continuing to work with policymakers on solutions that can provide support and liquidity to the next generation of American companies during this crisis, as well as policies that will help build a better economy for our nation’s future.”

“Certain aspects of the U.S. tax code penalize new businesses with early-stage losses, discourage investors from backing new ventures, and impede the growth of promising young companies,” said John Dearie, President of the Center for American Entrepreneurship. “Each of the bills introduced today by Representatives Kevin Brady (R-TX), Devin Nunes (R-CA), Vern Buchanan (R-FL), and Mike Kelly (R-PA) are an important step toward more equitable tax treatment of American startups, and together amount to major progress toward a more innovative and stronger U.S. economy. CAE thanks the Congressmen for their leadership, which will significantly enhance the post-COVID-19 economic recovery.”

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About National Venture Capital Association

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 www.nvca.org.

About TechNet

TechNet is the national, bipartisan network of technology CEOs and senior executives that promotes the growth of the innovation economy by advocating a targeted policy agenda at the federal and 50-state level. TechNet’s diverse membership includes dynamic American businesses ranging from startups to the most iconic companies on the planet and represents over three million employees and countless customers in the fields of information technology, e-commerce, the sharing and gig economies, advanced energy, cybersecurity, venture capital, and finance. TechNet has offices in Albany, Austin, Boston, Chicago, Olympia, Sacramento, San Francisco, Silicon Valley, Tallahassee, and Washington, D.C.

About Center for American Entrepreneurship

The Center for American Entrepreneurship (CAE) is a nonpartisan research, policy, and advocacy organization whose mission is to engage and educate policymakers in Washington, and at state and local levels across the nation, regarding the critical importance of entrepreneurs and startups to innovation, economic growth, and job creation – and to pursue a comprehensive policy agenda intended to significantly enhance policy circumstances for new business formation, survival, and growth.