Rep. Honda Introduces Legislative Package to Help Small in Week One of 114th Congeress

Press Release

Washington, DC -- Hitting the ground running, Congressman Mike Honda (D-Silicon Valley) today introduced four bills that are designed to help start-up and small businesses as they work to further expand Silicon Valley's innovation economy.

"Today I'm introducing legislation that will provide tax incentives for companies that are creating the most interesting and innovative businesses in the world," Congressman Honda said. "Companies on the brink of breakthroughs that will help millions, need assistance to stay in business until they can begin turning a profit on their innovations."

These bills are part of Congressman Honda's kick off of his 114th legislative agenda. Each of the first six weeks, he will be introducing legislation that address a key area of the modern progressive agenda. After this week's bills on manufacturing and technology, he will introduce bills on Gun Violence, Human Trafficking, STEM Education, Advanced Technology, and the Environment and Energy Infrastructure.

On Friday, the Congressman introduced:

The Next Generation American Manufacturing Act -- This bill will provide tax credits for the most innovative and disruptive technologies, along with a 25% tax credit for companies building their first manufacturing facilities in the United States.

The Incentivize Growth Now In Tomorrow's Entrepreneurs (IGNITE) Act -- This bill will allow entrepreneurs to save up to $10,000 a year in after-tax income in a Small Business Savings Account to be used to establish a small business. This will mean fewer loans and credit card debt that can hamper the success of a new enterprise.

The Support Our Startups Act -- This bill will expand a popular tax deduction for small business startup expenses. Current law allows entrepreneurs starting a small business to claim a $5,000 income tax deduction when total startup business costs do not exceed $50,000. The Support Our Startups Act will double the tax deduction to $10,000, and raise the cap on total startup expenses to $60,000.

The Creating Jobs from Innovative Small Business Act -- This bill will help small, research-intensive companies invest in their ideas and reach the next step of their business development. It will encourage small business investment by establishing a temporary 20 percent tax credit for investments in research-intensive small businesses.

In the coming weeks he will also be co-introducing The Innovators Job Creation Act with Reps. Mike Kelly (R-PA) and Ron Kind (D-WI). This bill will allow small and mid-sized businesses to take full advantage of the R&D tax credit. It is estimated that only 5% of small businesses and start-ups can use this credit to develop the businesses that are at the heart of the innovation economy. This will help startups stay viable, and encourage them to invest in R&D, which in turn boosts innovation and job growth.

"These five bills will help the small and start-up businesses create jobs," Congressman Honda said. "These jobs will help us address the income inequality that is hurting our overall economy and not allowing everyone to fully enjoy the benefits of our recovery."

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