WASHINGTON, DC – The National Venture Capital Association (NVCA) issued the following statement today after the Senate passed H.R. 1, the Tax Cuts and Jobs Act.
“We have always viewed tax reform as an important opportunity to realign the tax code to better support entrepreneurship and spur new company formation. While we would have preferred to see a section in tax reform dedicated to supporting entrepreneurship, it does preserve several provisions that are critical to the startup ecosystem,” said Bobby Franklin, President and CEO of NVCA. “We are thankful the Finance Committee removed language that would have disrupted the equity-based compensation system that is so critical to recruiting and retaining a talented startup workforce as well as taking the additional step of including new language that provides a deferral to emerging growth company employees that are forced to pay taxes on their stock options before the gains are realized. We are also pleased senators heard our message on the importance of supporting patient, long-term investment into entrepreneurial activity.”