TechNet Welcomes Introduction of Bipartisan 'Startup Act 2.0' Legislation

Bill is Aimed at Jumpstarting the Economy Through the Creation and Growth of New Businesses

WASHINGTON, May 31, 2012 /PRNewswire-USNewswire/ -- TechNet, the bipartisan policy and political network of technology CEOs that promotes the growth of the innovation economy, today hailed U.S. Senators Jerry Moran (R-Kan.), Mark Warner (D-Va.), Marco Rubio (R-Fla.) and Chris Coons (D-Del.), for their unveiling of bipartisan legislation, Startup Act 2.0, aimed at jumpstarting the economy through the creation and growth of new businesses.

The Startup 2.0 measure builds upon the original Startup Act introduced by Senators Moran and Warner in December. It has now been strengthened with additional proposals such as widely-supported provisions of S.1866, the AGREE Act, introduced by Senators Coons and Rubio in November.

"The Startup Act 2.0 helps create an environment in which entrepreneurs can pursue their ideas and succeed," said Rey Ramsey, President and CEO of TechNet. "This bipartisan effort recognizes that America's economic future depends on our nation's ability to continue driving innovation. The proposals included in this bill can help drive our economic recovery and solidify our global leadership for years to come."

Startup 2.0 creates new opportunities for U.S.-educated, entrepreneurial, highly-skilled immigrants to remain in the U.S. and contribute to the American economy.

The proposal also offers creative solutions to help startup companies better take advantage of existing tax credits intended to help them grow. For example, the bill permanently exempts capital gains taxes on the sale of startup stock help for more than five years, as a way to encourage investors to provide financial stability in the early years.

The Startup 2.0 Act also creates an R&D tax credit for young startups that are less than five years old and have less than $5 million in annual receipts. The credit can be used to offset employee taxes – freeing up the cash necessary for these young promising companies to expand and create more jobs.

About TechNet:
TechNet is the national, bipartisan network of CEOs that promotes the growth of technology industries and the economy by building long-term relationships between technology leaders and policymakers and by advocating a targeted policy agenda. TechNet's members represent more than one million employees in the fields of information technology, biotechnology, e-commerce and finance. TechNet has offices in Washington, D.C., Palo Alto, Sacramento, Seattle, Boston and Austin. Web address: www.technet.org. You can also follow us on Facebook and Twitter at @technetupdate.

SOURCE TechNet