Senator Moran introduced a bipartisan Start Up Act a few days ago. This bill appears to be slightly different from what was introduced by Senator Kerry and Senator Lugar in 2010 which was reintroduced in 2011. The detailed summary of this latest bill can be found at this link.
A copy of the press release from Senator’s Moran’s website is copied below which includes a summary of the issues:
U.S. Senators Jerry Moran (R-Kan.) and Mark Warner (D-Va.) have authored bipartisan legislation aimed at jumpstarting the economy through the creation and growth of new businesses. The Startup Act outlines a five-prong approach to job creation based on the proven track record of entrepreneurs: 1) reducing regulatory burdens; 2) attracting business investment; 3) accelerating the commercialization of university research; 4) attracting and retaining entrepreneurial talent; and 5) encouraging pro-growth state and local policies.
According to analysis conducted by the Ewing Marion Kauffman Foundation, companies less than 5 years old accounted for nearly all net job creation in the United States between 1980 and 2005. In fact, new firms create on average approximately 3 million jobs each year. The principles included in the Startup Act are based on the extensive research and analysis conducted by the Kauffman Foundation, and many of the Startup Act’s provisions build on the recommendations of President Obama’s Council on Jobs and Competitiveness. Click here to read the full news release.
If enacted, the Startup Act would do the following:
- Require a cost-benefit analysis of proposed regulations with an economic impact of $100 million or more to determine the efficacy of the rule and its potential effects on the formation and growth of new businesses;
- Make permanent the capital gains tax exemption for investments held for five years in Qualified Small Businesses (QSB), giving investors an incentive to partner with entrepreneurs and helping provide financial stability for the first few years of a new business’ life;
- Provide a corporate tax credit of up to $5 million for QSBs in the first taxable year of profit, followed by a 50 percent corporate income tax exclusion in the two succeeding taxable years, to help startups finance growth;
- Open the door for reforms to the Sarbanes-Oxley Act of 2002;
- Use existing federal research and development funding to support innovative projects at American universities in order to accelerate and improve the commercialization of cutting-edge technologies developed through faculty research;
- Create a STEM Visa for up to 50,000 immigrants per year who graduate with a Masters of Ph.D. in science, technology, engineering or mathematics, giving them the opportunity to stay in the United States and put their skills to work;
- Create an Entrepreneur’s Visa for up to 75,000 immigrant entrepreneurs who register a business and employ at least two non-family member employees, and invest in their business within one year of obtaining the visa. Current H-1B Visa holders or those who have completed graduate level work in a STEM field would qualify; and
- Encourage successful pro-growth state and local policies by studying state laws that affect new business formation and economic growth.
Click here to read a section-by-section summary of the Startup Act.
Watson Immigration Law welcomes this new bill and hopes that some form of the Start Up Act is enacted as soon as possible in 2012.