Congressman Kevin Yoder joined several colleagues to introduce the Startup Act 3.0 in the House of Representatives. The Startup Act 3.0 is a bill to create and keep jobs in America; increase America's access to talent in the fields of science, technology, engineering, and math (STEM) by reforming high-skilled visa policies; and create opportunities for startup businesses with tax incentives and access to resources for innovation. Other House Members originally cosponsoring the bill include Reps. Michael Grimm (R-NY), Loretta Sanchez (D-CA), Jared Polis (D-CO), Devin Nunez (R-CA), Gerald Connolly (D-VA), and Steve Chabot (R-OH).
"Small businesses are the engines that drive the American economy. Retaining the best and brightest American-educated entrepreneurs in the U.S. is vital to the prosperity and global competitiveness of our economy. I will continue my efforts in the 113th Congress to help these innovators and small business owners thrive, especially those in the science, technology, engineering, and math fields. I look forward to working on the Startup Act 3.0 with my colleagues on both sides of the aisle, and in both chambers," said Rep. Yoder. "Senator Jerry Moran, a leader in this area, introduced the Senate version, and I'm pleased to join him in introducing this bill in the House."
Research shows that startups create 3 million jobs per year, on average. In addition, over the past 30 years, companies less than five years old have created almost all the new net jobs in America.
Last Congress, Rep. Yoder was an original cosponsor of the Startup Act 2.0. Startup Act 3.0 builds upon those successes by using tax incentives to spur continued growth and innovation. In an important change from the previous bill, Startup 3.0 allows qualified companies to apply research and development tax credits to their payroll tax liability, up to $250,000. For small startups, it also makes permanent the 100 percent capital gains tax exemption on investments that are held for more than 5 years, in addition to the 28 percent exemption on qualified small business stock. These provisions will unlock over $7.5 billion in new investments which will result in more innovation and jobs. Finally, the bill helps cut red tape, by requiring a cost-benefit analysis of any significant rule being proposed by a federal or independent agency.
The bill has previously received industry support from Microsoft, Google, National Small Business Association (NSBA), CTIA, Consumer Electronics Association (CEA), Financial Services Forum, Computer and Communications Industry Association (CCIA), TechAmercia, Information Technology Industry (ITI), Compete America, Silicon Valley Leadership Group, and TechNet.
The Startup Act 3.0 was also introduced in the Senate on February 13, 2013 by Senators Jerry Moran (R-KS), Roy Blunt (R-MO), Mark Warner (D-VA), and Christopher Coons (D-DE).