Senators introduce Startup Act 3.0
U.S. Sens. Jerry Moran, R-KS, and Mark Warner, D-VA, along with Chris Coons, D-DE, and Roy Blunt, R-MO, introduced Startup Act 3.0--the updated version of their bipartisan jobs and high-skilled immigration plan to jumpstart the economy through the creation and growth of new businesses.
Startup Act 3.0 creates both Entrepreneur and STEM Visas for highly educated and entrepreneurial immigrants to stay in the United States where their talent and new ideas can fuel economic growth and create American jobs. The legislation also modifies the tax code to encourage investment in new businesses, accelerates the commercialization of university research that can lead to new ventures, and seeks to improve the regulatory process.
"America has long been seen as the land of opportunity for innovators and entrepreneurs. We must do everything possible to make certain that remains true," Moran said. "At a time when our economy needs jobs first and foremost, America's archaic government policies have us falling behind. We are losing talent and jobs by the day to countries like Canada, Chile, and the United Kingdom that are aggressively courting the world's best and brightest. We must pass Startup Act 3.0, or we risk losing the next generation of great entrepreneurs and the jobs they create to countries that have taken action to attract and better support these innovators."
"With a renewed focus on comprehensive immigration reform, it is imperative that we take common-sense steps to help the U.S. compete and win the global competition for talented innovators and entrepreneurs," Warner said. "Our bipartisan legislation provides greater support for high-wage, high-skill jobs. We also propose reasonable steps to reform our tax and regulatory policies to help promote investment and job creation, and Startup Act 3.0 also looks to accelerate the transfer of university R&D into the marketplace."
"While our economic recovery is ongoing, we have a chance to look toward the future and build the kind of innovation-based economy that will help our kids and grandkids compete and succeed for generations to come," Coons said. "Startup Act 3.0 will help us get there by bringing ideas and discoveries from the laboratory to the marketplace, helping startups access the R&D Tax Credit which supports growth and job creation, and ensuring that when a foreign-born, American-educated graduate student in science, technology, engineering or math has a great idea to start a business, they do it here in the United States instead of going home to compete with us. Thanks to Sens. Moran, Warner and Blunt for their hard work and leadership on this legislation."
"Now more than ever, we simply cannot afford to lose American entrepreneurs as a result of anti-competitive domestic policies. I'm committed to fighting to remove barriers for job creators so they can grow and hire here in the U.S.," Blunt said. "Countries like Great Britain and Canada are already promoting their low-tax, business friendly regulatory environments in hopes of attracting U.S.-based companies to relocate. This common-sense legislation will help us keep more American innovators here at home."
Research shows that for close to three decades, companies less than five years old have created almost all net new jobs in America--averaging about three million jobs each year.
Additionally, immigrants to the United States have a long history of creating businesses in America. Of the current Fortune 500 companies--including Apple, Google and eBay--more than 40 percent were founded by a first- or second-generation American. These American companies employ more than 10 million people. Both American and foreign-born entrepreneurs are needed to jumpstart the economy through the creation and growth of new businesses.
Many of the principles included in Startup Act 3.0 are based on the research and analysis by the Ewing Marion Kauffman Foundation, and have been endorsed by President Obama's Council on Jobs and Competitiveness.
The provisions in Startup Act 3.0 have been endorsed by CEA, TechAmerica, Financial Services Forum, the National Small Business Association, Google, CONNECT, CTIA, Engine Advocacy, Computer and Communications Industry Association, the Greater Kansas City Chamber of Commerce, the Austin Chamber of Commerce, Angel Capital Association, ITI, Northern Virginia Technology Council, Perceptive Software, Shenandoah Valley Technology Council, Silicon Valley Leadership Group, Tampa Bay Technology Forum, TechNet, Virginia Chamber of Commerce and Wichita Chamber of Commerce.
Startup Act 3.0 includes the following provisions:
--Creates an Entrepreneur's Visa for legal immigrants, so they can remain in the United States, launch businesses and create jobs;
--Creates a new STEM visa so U.S.-educated foreign students, who graduate with a master's or Ph.D. in science, technology, engineering or mathematics, can receive a green card and stay in this country where their talent and ideas can fuel growth and create American jobs;
--Eliminates the per-country caps for employment-based immigrant visas--which hinder U.S. employers from recruiting the top-tier talent they need to grow;
--Makes permanent the exemption of capital gains taxes on the sale of startup stock held for at least five years--so investors can provide financial stability at a critical juncture of firm growth;
--Creates a limited research and development tax credit for young startups less than five years old and with less than $5 million in annual receipts. This R&D credit is designed to allow startups to offset employee taxes--freeing up resources to help these young companies expand and create jobs;
--Uses existing federal R&D funding to support university initiatives designed to bring cutting-edge research to the marketplace more quickly where it can propel economic growth;
--Requires all government agencies to conduct a cost-benefit analysis of all proposed "significant rules" with an economic impact of $100 million or more. This new requirement will help determine the efficacy of regulations and their potential impact on the formation and growth of new businesses; and
--Directs the U.S. Department of Commerce to assess state and local policies that aid in the development of new businesses. Through the publication of reports on new business formation and the entrepreneurial environment, lawmakers will be better equipped to encourage entrepreneurship with the most successful policies.