Startup Act 20 Introduced in House
A few weeks ago, we told you about the Senate version of Startup Act 2.0—sponsored by a bipartisan group of four U.S. Senators. Not to be outdone, the House introduced identical legislation last week thanks to Congressman Michael Grimm (R-N.Y.) and Loretta Sanchez (D-Calif.) along with a group of cosponsors—Kevin Yoder (R-Kan.), Jared Polis (D-Colo.), Devin Nunes (R-Calif.), Russ Carnahan (D-Mo.) and Robert Dold (R-Ill.).
The legislation—H.R. 5893—calls for a couple of new visas to address highly-educated and highly-skilled immigrant entrepreneurs. The first being a new visa for up to 50,000 foreign students with an advanced degree from a US university in a STEM field. The other new visa targets up to 75,000 immigrant entrepreneurs who employ at least two full-time employees. Other provisions in the Act call for:
- A permanent 100 percent capital gains tax exemption for investments held for at least five years in “qualified small businesses”.
- A limited R&D tax credit for startups less than 5 years old with under $5 million in annual receipts.
- Existing federal funding for research and development to support innovative initiatives at American universities to accelerate and improve the commercialization of taxpayer-funded research.
- Federal agencies to consider the effect of new “major rules” on startups.
- The Department of Commerce to compile and publish information on new business starts within the US and a report that analyzes state laws that affect the formation and growth of startups.
Stay tuned for updates on the Startup Act 2.0 as supporters try to fast-track it through both the House and Senate ahead of the general election this fall.