The big startup boom across the United States has run parallel to the Obama administration. When many startups think about politics, politicians and getting support for startups they often think back to Startup America and other initiatives under the Obama administration. But there are lot’s of Republicans in congress who realize that startups and new business is vital to the US economy.
That’s why this week Senator Pat Toomey (R-Pennsylvania) introduced the Startup Jobs and Innovation Act meant to help spur startup growth.
According to the Pittsburgh Times this bill will:
- Permanently renews “Sec. 179 small business expensing” – making it easier for a business or farm to expand by allowing companies to deduct the first $500,000 in equipment purchases in the year the purchase is made.
- Doubles the amount of startup costs entrepreneurs can deduct in the first year. Currently, companies can only deduct the first $5,000 in startup costs, and amounts above that have to be deducted over the course of 15 years.
- Simplifies the tax code and provides much needed certainty for smaller businesses that cannot afford to hire an army of expensive tax attorneys to comply with the federal government’s convoluted tax regulations.
Back in January Senator Jerry Moran (R-Kansas) introduced the Startup Act that will help ease immigration where a startup founder from another country is concerned. This bill will also “provide a permanent full tax exclusion on gain from the sale or exchange of qualified small business stock held for more than five years, (2) repeal the minimum tax preference and the 28% capital gains rate on such stock, and (3) provide a limited tax credit for certain startup small businesses.”
Finally the Startup Act bill will call for more reporting so that nationwide we can track the success of startups or businesses under one year old.