U.S. House representatives have reintroduced the Innovative Technologies Investment Incentive Act (H.R. 1415), a bill that would “amend the Internal Revenue Code of 1986 to allow a credit for equity investments in high technology and biotechnology small business concerns developing innovative technologies that stimulate private sector job growth.”
Bill sponsor Rep. C.A. Dutch Ruppersberger (D-Md.) said that the proposed legislation “will create jobs, accelerate economic growth, and make targeted investments that keep America on the cutting edge of innovation.”
“In Maryland, the growing life sciences sector—which includes many small biotechnology firms—has generated one third of all job gains over the past decade and this bill will enable them to expand and hire even more,” noted Ruppersberger. “It’s exactly the type of common sense jobs bill that lawmakers should be focused on right now.”
Rep. Chris Van Hollen (D-Md.) said of the proposal, “As our economy continues to recover, the Innovative Technologies Investment Incentive Act will provide an important boost to America’s most innovative small companies at a time when that boost is needed most. Putting Americans back to work is our number one priority. This pro-growth initiative—modeled after the highly successful Maryland Biotechnology Investment Incentive Tax Credit and similar legislation in other states—will leverage private capital to create good-paying jobs, reward innovation, and lay the foundation for our future prosperity.”
Introduced on April 9, 2013, bill would (i) “accelerate innovation by providing a 25 percent tax credit for qualified equity investments in eligible high technology and biotechnology small business concerns”; (ii) “invest in quality by directing credit-qualified investments only to those small businesses that have met the federal government’s rigorous requirements for receiving Small Business Innovation Research (SBIR) grant awards”; (iii) “control costs by establishing a per company cap for the Innovative Technology Investment Credit at one half the value of the receiving company’s SBIR award and an initial program cap of $500 million”; and (iv) “reward long term investments by requiring a holding period of at least three years for qualified investments.” See Reps. C.A. Dutch Ruppersberger and Chris Van Hollen News Releases, April 9, 2013.