Advocacy

CSBI supports a U.S. tax code that recognizes innovation as a crucial part of the 21st century American economy. Targeted reforms to the passive activity loss rules under Section 469, treatment of net operating losses under Section 382, and small business capital gains tax rates under Section 1202 will spur capital formation for small R&D-intensive businesses and support vital pre-revenue innovation. Click here to read the Coalition’s legislative proposals.

Reps. Patrick Meehan (R-PA), Richard Neal (D-MA), Mike Kelly (R-PA), Ron Kind (D-WI), and John Larson (D-CT) have introduced H.R. 2297, the Partnerships to Advance Revolutionary Technology and Novel Entrepreneurial Research (PARTNER) Act, which would support early-stage research by incentivizing investment in R&D-focused small businesses. Please click on the links below for more information on the bill.

In this letter, the Coalition commends Senators Menendez and Toomey for introducing the Start-up Jobs and Innovation Act, which will ensure young, emerging, research-centric businesses are able to raise enough capital to unlock the cutting-edge technologies key to the nation’s economic health and prosperity. To read the Coalition’s letter, click here.

A study, conducted by Ernst & Young, analyzes the economic impact of three legislative proposals designed to help small R&D-intensive start-up companies and other small businesses better utilize existing tax provisions, and incentivize investment in small business innovation.

If enacted together, the three proposals would increase total investment by $20.6 billion and result in an estimated 623,000 jobs when indirect and induced economic effects are included. Click here to view the full study.

Senate Finance Committee Chairman Max Baucus and Ranking Member Orrin Hatch have asked the Senate to submit tax provisions that should be included in a reformed, “clean slate” tax code. Their goal is to lower the corporate tax rate by eliminating certain tax expenditures. CSBI submitted this letter stressing the importance of supporting pre-revenue innovation and advocating for targeted reforms to Section 469 PAL rules, Section 382 NOL restrictions, and Section 1202 capital gains rates. To read the Coalition’s letter, please click here.

On May 15, the Select Revenue Measures Subcommittee of the House Ways & Means Committee held a hearing on the small business tax reform discussion draft released by Chairman Camp. The Coalition submitted written testimony for this hearing highlighting its legislative priorities and urging Congress to support investment in emerging innovators. To read the Coalition’s testimony, please click here.

The staff of the Senate Finance Committee issued this report compiling tax reform options presented to the Committee. The Coalition’s R&D Partnership Structures proposal is cited on page 7 in item 6a. A version of the Coalition’s Section 1202 proposal is included on page 7 in item 5b. Click here to access the Finance Committee report.