Coalition of Small Business Innovators

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Reps. Meehan, Neal, Kelly, Kind, and Larson Introduce the PARTNER Act 

The Coalition of Small Business Innovators (CSBI) applauds Reps. Patrick Meehan (R-PA), Richard Neal (D-MA), Mike Kelly (R-PA), Ron Kind (D-WI), and John Larson (D-CT) for introducing H.R. 2179, the Partnerships to Advance Revolutionary Technology and Novel Entrepreneurial Research (PARTNER) Act. This bill would support early-stage research by incentivizing investment in R&D-focused small businesses.  

To read more, click here.

 

Sens. Carper and Toomey Introduce the COMPETE Act

The Coalition of Small Business Innovators (CSBI)  expresses strong support for the COMPETE Act, introduced by Senator Tom Carper (D-DE) and Senator Pat Toomey (R-PA), to incentivize investment in emerging, research-centric businesses and support the search for cutting-edge technologies that are key to our nation’s economic health and prosperity.

The COMPETE Act would encourage vital investments and support widespread job creation. CSBI believes this legislation is critical to the continued vitality of next generation innovators and is a much-needed step to ensure that America maintains its place as a global leader.

To read more, click here

 

Sens. Toomey, Menendez, Roberts, & Carper Introduce the Start-up Jobs and Innovation Act

The Coalition of Small Business Innovators (CSBI) expresses support for the Start-up Jobs and Innovation Act, which would incentivize investment in emerging, pre-revenue, research-centric businesses and support the search for cutting-edge technologies that help to fuel our nation’s economic health and prosperity.  CSBI thanks Senator Pat Toomey (R-PA) and Senator Robert Menendez (D-NJ) for introducing this vital piece of legislation, and Senators Pat Roberts (R-KS) and Tom Carper (D-DE) for cosponsoring the bill.

The Start-up Jobs and Innovation Act is critical to the continued vitality of next generation innovators and is a much-needed step to ensure that America maintains its place as a global leader and we urge other Members of Congress to lend their support to this important measure. 

To read more, click here.

 

Bipartisan bill would help biotechs fund research

In the last two years, we have seen a record number of biotechs go public, and their successful initial public offerings will provide the capital for their late-stage trials. But how did they get there? Venture capital. It has long been the lifeblood for early-stage biotechs, and 70 percent of last year's IPOs were issued by VC-backed companies. Companies like mine need years of private investment before going public is even an option.

We have seen funds raise less money, turn away from biotechnology, or close altogether. We run the risk of losing out on a generation of young companies that could be the next class of IPOs. Pennsylvania's strong life-science economy is poised to grow even larger, but only if our companies are able to get the funding they need to prosper.

The U.S. economy is bolstered by the high-quality jobs created by our industry, and supporting R&D is key to maintaining America's lead in the innovation-centric 21st-century economy. As an industry, we should be mindful of the importance of early-stage financing and the promise that early-stage research holds. By supporting the Start-up Jobs and Innovation Act, we can help Congress make the right decision for innovators, patients, and the country as a whole. Jeff Hatfield, Philadelphia Inquirer, June 9, 2014.

To read the full op-ed in the Philadelphia Inquirer, click here.

 

Legislation Aims to Foster Investment in Biotech

As a serial entrepreneur and a scientist, I have been immersed in the biotechnology industry for almost two decades, starting several companies from the ground up and leading key scientific research projects that have contributed to our biological understanding of the human genome.  In our industry, one quickly learns that while we discover unbelievably exciting and useful facts about human diseases, the pace of research and development for new medicines can move excruciatingly slowly, and the cost can be remarkably high.  

We believe that our therapies in development for life-threatening diseases in oncology, fibrosis, and metabolic diseases have the potential to change and save patient lives around the world.  However, obtaining critical capital to fuel such innovation can be challenging.

The Start-up Jobs and Innovation Act would benefit small R&D driven businesses like Regulus by allowing companies to focus their time on what’s really important – exploring the frontiers of science to develop new and powerful medicines.  I believe that industries like biotechnology are helping our economy and ensuring that our nation is competitive on the world stage.  Kleanthis Xanthopoulos, San Diego Business Journal, June 6, 2014.

To read the full op-ed in the San Diego Business Journal, please click here.

 

Viewpoint: Passage of Start-up Jobs and Innovation Act critical to Colorado economy

The recent recession has decimated financing for the start-up bioscience industry, with many companies and venture funds disappearing completely. Fortunately, there is newly proposed federal legislation that would help address these issues and strengthen high-tech, research-intensive industries across the country – including the bioscience industry right here in Colorado.

By encouraging investors to support early-stage R&D and dedicate themselves to long-term research projects, the Start-up Jobs and Innovation Act will allow growing companies to finance for the longer term and focus more of our attention on scientific advancement and innovative research.

The Start-up Jobs and Innovation Act will ensure that we continue to attract the highest caliber researchers and have the capital necessary to fund their groundbreaking research. I urge Colorado’s delegation in Congress to support this vital legislation. Tim Rodell, Denver Business Journal, April 20, 2014.

To read the full op-ed in the Denver Business Journal, click here

 

Viewpoint: Want more tech giants? Support R&D

Every great company began with a revolutionary idea and individuals dedicated to making the seemingly impossible a reality.

It's easy to see that Washington has a rich history of producing great, innovative companies — just look at Amazon, Boeing and Microsoft. These companies started out as small businesses and grew into the household names they are today.

Our state is home to many more innovative startups that are working their way toward becoming the next breakthrough company. Bradford Zakes, Puget Sound Business Journal, April 11, 2014.

To read the full op-ed on how the Start-up Jobs and Innovation Act will support R&D, please click here.

 

Guest opinion: Support Big Sky innovation with legislation

When LigoCyte Pharmaceuticals was founded in 1998, the team that built the company was certain that Bozeman, with the talent available through Montana State University, would be the best place to start the company. But who had ever heard of an early-stage biotech in Montana? 

If we want Montana’s R&D-based economy to continue to grow, we need our policy makers to continue to support laws that encourage the growth of early-stage innovators.

The Start-up Jobs and Innovation Act is designed to stimulate investment in growing innovators – and investment is vital to fund costly, long-term research.  Under the bill, companies will be able to partner with private investors on an R&D project, bringing in important capital for groundbreaking research ongoing at small companies in Montana and across the country.

To an outsider, Montana might seem like an unlikely place for innovative breakthroughs in new medicines and vaccines. But we have an opportunity to build on our progress and become an integral part of America’s 21st century economy. I am hopeful that our Montana congressional delegation will support the burgeoning researchers and job creators here at home by endorsing the Start-up Jobs and Innovation Act. Don Beeman, Billings Gazzette, March 7, 2014.

For the full op-ed in the Billings Gazzette, please click here

 

CompTIA, TECNA, and TechVoice Join CSBI

CSBI is pleased to welcome three high tech trade groups to the Coalition – the Computing Technology Industry Association (CompTIA), the Technology Councils of North America (TECNA), and TechVoice.

“CompTIA is thrilled to join the Coalition of Small Business Innovators and looks forward to working with our fellow CSBI members to spur investment in innovative small businesses,” said Todd Thibodeaux, President & CEO of CompTIA.

“Speaking on behalf of technology associations across the country, TECNA is fully supportive of the Coalition’s efforts to modernize the U.S. tax code in an effort to sustain and stimulate innovation in small business,” said Steven G. Zylstra, Chairman of TECNA and President & CEO of the Arizona Technology Council. 

For more info, click here.

 

Senator Pat Roberts Co-Sponsors the Start-up Jobs and Innovation Act

The Coalition of Small Business Innovators applauds Senator Pat Roberts (R-KS) for co-sponsoring the Start-up Jobs and Innovation Act.  Senator Roberts joins Senators Robert Menendez (D-NJ) and Pat Toomey (R-PA) as supporters of the legislation. 

“CSBI thanks Senator Roberts for taking this important step to support innovative pre-revenue companies,” said John Lewis, Vice President of Public Affairs at the Association of Clinical Research Organizations. “America’s economy depends on the success of job-creating small businesses, and the Start-up Jobs and Innovation Act will spur investment in growing research-centric companies.”

Read more here.

 

FORUM: Will Innovation Bridge the Partisan Divide over Comprehensive Tax Reform?

The Coalition of Small Business Innovators (CSBI) is hosting a media briefing to address the potential of comprehensive tax reform in 2014 based on recent legislative proposals and the need to simplify the tax code and eliminate specific deductions and credits while simultaneously encouraging and supporting small business innovation.

For more information on the event on Thursday, December 12th, please click here

 

Proposed tax changes could spark R&D investment

A new legislative proposal aims to modernize the U.S. tax code in order to stimulate investment in research and development for emerging companies.

The Startup Jobs and Innovation Act, introduced Nov. 6 by Sen. Robert Menendez, D-N.J., and Pat Toomey, R-Penn., would allow emerging companies to partner with investors through so-called research and development partnership structures. Cady McGovern, The Idaho Business Review, December 4, 2013.

For full text of this article in The Idaho Business Review , please click here

 

A critical need for innovation capital in NC

North Carolina – especially the Research Triangle Park – is a hotbed for next-generation technology development and is among the nation’s leaders in overall employment and job creation in several emerging technology sectors. Yet despite its education and technology strengths, our state continues to trail national leaders in innovation capital.

Earlier this month, legislation that could help improve access to innovation capital nationally was introduced in Congress by Sens. Robert Menendez and Pat Toomey. Titled the Start-up Jobs and Innovation Act, the legislation would restore and expand federal tax policy designed to support capital formation among small, innovation-based companies. Our state’s congressional delegation should lend its support to the bill, which would create jobs and support R&D here in North Carolina. Sam Taylor, The News & Observer, December 2, 2013.

For the full text of the op-ed by Sam Taylor, President of the N.C. Biosciences Organizations, please click here

 

Toomey bill will boost life sciences in Pa: As I See It

U.S. Sens. Pat Toomey, R-Pa., and Bob Menendez, D-N.J., recently announced that they are co-sponsoring legislation that would support innovative small businesses and create high-quality jobs here in Pennsylvania.

The proposed Start-up Jobs and Innovation Act will promote long-term investment in small businesses conducting innovative research, providing them the time they need to make scientific progress and develop the next generation of technologies to improve and save lives.

On behalf of Pennsylvania Bio and our 600 member organizations, I applaud and support this legislation and know it will make a big difference for growing companies in Pennsylvania. Christopher P. Molineaux, The Patriot-News, November 28, 2013.

For the full text of the op-ed by Christopher P. Molineaux, President of The Pennsylvania Biotechnology Association, please click here.

 

STARTUPS: Industry Touts Bill as Rx for Biopharma Jobs

The Biotechnology Industry Organization (BIO) and a startup CEO are among supporters of a U.S. Senate bill they predict will create thousands of new jobs.

The Startup Jobs and Innovation Act (S.1658), introduced November 6 and referred to the Senate Finance Committee, would allow small companies to join their investors in forming “R&D Partnership Structures” that offset investors’ taxable income with the startup’s losses and credits generated by R&D. Eligible are prerevenue startups with fewer than 250 employees, less than $150 million in gross assets, and a significant percentage of expenses in R&D. Alex Philippidis, Genetic Engineering and Biotechnology News, November 15, 2013.

For full text of this article in the Genetic Engineering and Biotechnology News, please click here.

 

Senate proposes tax changes to spark R&D investment

A new proposed piece of legislation aims to modernize the U.S. tax code in order to stimulate investment in research and development for emerging companies.

The Startup Jobs and Innovation Act, introduced Nov. 6 by Sen. Robert Menendez, D – N.J., and Pat Toomey, R – Penn., would allow emerging companies to partner with investors through so-called research and development partnership structures. Maria Clark, New Orleans City Business Journal, November 8, 2013.

For full text of this article in the New Orleans City Business Journal, please click here.

 

Sens. introduce bill to spur investment in small R&D companies

BIO has checked some key boxes - bipartisan sponsorship, support from a broad coalition - in its effort to get the Start-up Jobs and Innovation Act enacted, but the path forward is uphill. Getting anything through Congress is a daunting task, and it is going to get much harder next year as Washington goes into campaign mode.

The Start-up Jobs and Innovation Act would revive a discarded section of the tax code that allowed R&D limited partnerships in which investors could use a company's losses and tax credits to offset taxable income. Passive activity loss rules enacted in 1986 made it impossible for losses and credits to flow through to investors. Steve Usdin, BioCentury, November 6, 2013.

For full text of this article in BioCentury, please click here.

 

Menendez Introduces Bill To Help Small Business

U.S. Senators Robert Menendez and Pat Toomey today introduced the bipartisan Start Up Jobs and Innovation Act, which they say will help entrepreneurs to start and grow a small business.

According to the senators, the bill will:

·         Make it easier for businesses to expand by permanently allowing companies to deduct the first $500,000 in equipment purchases. Without this provision, businesses would only be allowed to deduct a small portion of their costs in the first year, with the remaining amount deducted over a period of many years making it more expensive and difficult for a company to grow.

·         Permanently cut taxes for people who make long-term investments in American small businesses. This will let U.S. small businesses attract the investment they need to create jobs and compete in today’s global economy.

·         Remove a tax barrier that makes it harder to create a business by doubling the amount of start-up costs entrepreneurs can deduct in the first year. Currently, companies can only deduct the first $5,000 in start-up costs, and amounts above that have to be deducted over the course of 15 years.

·         Allow high-tech small businesses the ability to use the same tax provisions large firms have available for innovation. Under the bill, investors in research-intensive small companies would be able to deduct losses and receive credits — which are currently available to the business but don’t actually benefit them.

·         Ease tax compliance for small businesses by allowing more companies to use the simpler “cash accounting” method. This will make it easier for small companies to pay their taxes, giving them more time to focus on creating jobs and growing their business. 

NJToday, November 6, 2013.

Read more here.

 

Start-up Jobs and Innovation Act could advance energy industry

A recently introduced bill in the U.S. Senate could ultimately provide a financial windfall to startup companies in the medical device industry if it ever becomes law.

The Start-up Jobs and Innovation Act, introduced by Sen. Robert Menendez (D-N.J.) and Sen. Pat Toomey (R-Penn.), modifies the tax code to allow innovative startups to partner with investors through “R&D Partnership Structures.” This would provide a break for all in the life sciences industry, but particularly for those who make medical devices and are negatively impacted by the medical device excise tax, which inhibits growth and innovation.  Paul Fleming Jr., The Eliassen Group, November 12, 2013.

For full text of this blog post by the Eliassen Group, please click here.

 

MicroNews Update

Robert Menendez, Democratic Senator from New Jersey, and Pat Toomey, Republican Senator from Pennsylvania, introduced a new Senate bill, the Start-up, Jobs, and Innovation Act. The bill aims to stimulate innovation and generate investment in groundbreaking research and development for startups and growing businesses through reforms to the existing tax code. The Electricity Storage Association supports the bill along with several other technology groups that have aligned to form the Coalition of Small Business Innovators. Reid Smith, Energy Efficiency Markets, November 11, 2013.

Read more here.

 

Invest in innovators

New Jersey is home to more scientists and engineers per square mile than anywhere in the world, with more than 2,500 businesses working in innovative industries. But most of New Jersey’s research companies didn’t start out as large firms with hundreds of employees. The majority of R&D-intensive companies start out as an idea, a lab, and a handful of dedicated researchers looking to develop a new technology or health care breakthrough. They undergo years of trial and error in the lab — all while trying to raise patient capital from an increasingly impatient investor community. It can cost more than $1 billion to develop a single breakthrough technology. Debbie Hart,The New Jersey Star-Ledger, November 13, 2013.

For full text of this Letter to the Editor by Debbie Hart, president and CEO of BioNJ, please click here.

 

Private investments kickstart innovation

Investing in R&D is key to America’s economic future as well as America’s ability to forge solutions to our nation’s most pressing needs.  Both our large and small businesses are leading the world in innovative research, and it is vital that Congress keeps the U.S. on the cutting edge of scientific research and discovery.  Supporting small business innovators is critical to this effort.

The Start-up Jobs and Innovation Act, introduced by Sens. Robert Menendez (D-N.J.) and Pat Toomey (R-Pa.), will do just that by reforming the rules governing how private investors can partner with small, research-intensive companies.  Jim Greenwood, The Hill, November 6, 2013.

For the full text of the op-ed by Jim Greenwood, president and CEO of BIO, please click here.

 

Senators Propose Bill to Provide Tax Breaks to Small Business Startups

Senators Robert Menendez, D-N.J. and Pat Toomey, R-Pa., have introduced bipartisan legislation to help entrepreneurs start and grow a small business and comply with complex tax rules.

The Start Up Jobs and Innovation Act aims to make it easier for businesses to expand by permanently allowing companies to deduct the first $500,000 in equipment purchases.  Without this provision, businesses would only be allowed to deduct a small portion of their costs in the first year, with the remaining amount deducted over a period of many years making it more expensive and difficult for a company to grow.  Michael Cohn, Accounting Today, November 7, 2013.

For full text of the article in Accounting Today, please click here.

 

Lawmakers Pen JOBS Act Sequel with Tax Reform Plot

What could be the first chapter in a sequel to the Jumpstart Our Business Startups (JOBS) Act was unveiled Wednesday with the hope that it soon will become a congressional best-seller that will stimulate investment in groundbreaking R&D.

While the JOBS Act plotline focused on SEC reforms that would make it easier for emerging-growth companies to raise much-needed capital, the bipartisan Start-up Jobs and Innovation Act looks to tax reforms to open revenue streams for R&D at start-ups and growing companies. Mari Serebov, BioWorld, November 6, 2013.


For full text of the article in BioWorld, please click here

 

Sens. introduce bill to spur investment in small R&D companies

Sens. Robert Menendez (D-N.J.) and Pat Toomey (R-Pa.) introduced in the U.S. Senate a bill that would make changes to current tax code that are aimed at boosting investment in loss-making R&D companies that lack near-term revenue. The Start-up Jobs and Innovation Act would allow investors in small businesses to use the company's losses and tax credits to offset the investors' taxable income. The bill also would make permanent the capital gains tax exclusion for the sale of shares of qualified small businesses and increase the size of qualified companies to include those with up to $150 million in assets, up from $50 million. Additionally, the bill would ease accounting methods for pre-profit, small R&D companies. BioCentury, November 6, 2013.

Read more here.

 

Startup Jobs and Innovation Act could mean big break for life sciences industry.

Could a new bill in the U.S. Senate jumpstart healthcare startups? Sen. Robert Menendez (D-N.J.) and Sen. Pat Toomey (R-Penn.) introduced the Startup Jobs and Innovation Act today. If turned into law, the legislation would modify the tax code to allow innovative startups to partner with investors through “R&D Partnership Structures.” This could mean a break for the expensive life sciences industry, especially the medical device industry, which has said the negative impact of the medical device excise tax inhibits growth and innovation within small businesses the most. Lindsey Alexander, MedCity News, November 6, 2013.

For full text of the article in MedCity News, please click here.

 

BayBIO Applauds Introduction of Start-up, Jobs and Innovation Act

BayBio supports new legislation introduced by Senators Robert Menendez (D-NJ) and Pat Toomey (R-PA) that is  designed to increase capital formation for R&D-focused companies in the early stages of development.

The Start-up Jobs and Innovation Act would encourage the private sector to invest in breakthrough research being conducted at young life science companies and other innovative small businesses across the Bay Area. Located in the birthplace of biotechnology, BayBio supports legislation that increases capital and resources needed to sustain critical innovation in the industry.

Read more here

 

BioNJ Applauds Start-up Jobs and Innovation Act to Advance New Jersey Innovative Industries

BioNJ, New Jersey’s trade organization focused on the growth and prosperity of the state’s more than 350 biotechnology companies, applauds Senator Robert Menendez (D-NJ) for introducing the Start-up Jobs and Innovation Act along with Senator Pat Toomey (R-PA). This important bill will create high-quality jobs in New Jersey by stimulating investment in groundbreaking R&D at start-up and growing companies.

BioNJ has joined with the Coalition of Small Business Innovators (CSBI) to support this bill because small business innovation, as supported by the Start-up Jobs and Innovation Act, is fundamental to the long-term growth of the New Jersey economy.

Read more here.

 

BIO Applauds Senators Menendez and Toomey for Introducing the Start-up Jobs and Innovation Act

Washington, D.C. (November 6, 2013) – Today, the Biotechnology Industry Organization (BIO) applauds Senators Robert Menendez (D-NJ) and Pat Toomey (R-PA) for introducing the Start-up Jobs and Innovation Act.  This bill is designed to spur capital formation for R&D-focused companies in the early stages of development.

It can take over a decade and cost more than $1 billion to bring a single groundbreaking biotechnology treatment from laboratory bench to hospital bedside, and virtually the entire process is funded by private investment.  The Start-up Jobs and Innovation Act would encourage the private sector to invest in breakthrough research being conducted at young biotechs and other innovative small businesses across the country.

Read more here.

 

New Bipartisan Legislation Introduced in Senate Would Support Energy Storage Entrepreneurs

Senators Robert Menendez (D-NJ) and Pat Toomey (R-PA) introduced the Start-up, Jobs, and Innovation Act today. The bill aims to stimulate innovation and generate investment in groundbreaking research and development at start-ups and growing businesses, including pre-revenue energy storage companies, through reforms to the existing tax code. The Electricity Storage Association (ESA) joins several other technology groups that have aligned to form the Coalition of Small Business Innovators (CSBI), in support of this bill. 

Read more here

 

MDMA Applauds Introduction of the “Start Up Jobs and Innovation Act”

Washington, DC – The Medical Device Manufacturers Association (MDMA) today applauded Senators Pat Toomey (PA) and Robert Menendez (NJ) for their introduction of the "Start Up Jobs and Innovation Act.”

The Act promotes sustained, private investment in small, highly-innovative companies focusing on the development of new technologies. It is aimed at helping American small business innovators gain access to private investment to incentivize breakthrough research and stimulate investment in groundbreaking research and development.

Read more here

 

Senators Menendez and Toomey Announce Start-up Jobs and Innovation Act to Advance U.S. Innovative Small Businesses

Legislation would Boost Investment in the U.S. and Create Jobs

Washington, D.C. (November 6, 2013) – Today, Senators Robert Menendez (D-NJ) and Pat Toomey (R-PA) introduced the Start-up Jobs and Innovation Act,which would modernize the U.S. tax code to stimulate investment in groundbreaking R&D at start-ups and growing companies.  Small business innovation is fundamental to the long-term growth of the U.S. economy. This legislation is supported by the Coalition of Small Business Innovators (CSBI), a group of 18 organizations representing highly innovative small businesses.

“The Coalition of Small Business Innovators applauds the legislation introduced today by Senators Menendez and Toomey,” said Katherine Hamilton, Policy Director at the Electricity Storage Association. “The Start-up Jobs and Innovation Actwill promote long-term investment in innovative industries, providing the time needed to develop the next generation of technologies and breakthroughs, while creating high-quality American jobs and ensuring America remains competitive on a global scale.”

Read more here.

 

Tax Proposals to Promote Increased Investment In Research-Intensive Small Businesses

The possibility of enacting comprehensive reform of the Internal Revenue Code (Code) is a topic that has garnered much attention recently—there have been proposals for corporate tax reform, discussion drafts of various alternatives for changing international, passthrough and other tax rules, and much commentary by tax professionals, academics and others. James Combs, BNA Insights, September 27, 2013.

Read more here.

 

Jeffrey Hatfield, President & CEO of Vitae Pharmaceuticals, appeared on BioCentury This Week. BioCentury TV, September 15, 2013.

Click here to view the show.

 

E&Y Study: 3 Tax Tweaks that Could Spur Job Growth

A new report from Ernst & Young illustrates the economic impact of three tax proposals intended to help small businesses spur innovative research and development.

The report indicates that the three tax revisions, if enacted together, could drive up research and development investments by more than $20 billion and create an estimated 623,000 new jobs at new and small firms. Jeff Hatfield, BIOtechNOW, September 13, 2013

Read more here.

 

Research!America Joins Coalition of Small Business Innovators 

Research!America announced today it has joined the Coalition of Small Business Innovators (CSBI).  CSBI is a national, non-partisan coalition of organizations dedicated to stimulating sustained, private investment in small, highly innovative companies focusing on the development of new technologies.

Research!America is the nation's largest nonprofit public education and advocacy alliance working to make research to improve health a higher national priority.

“Research!America is a particularly influential voice in efforts to promote medical innovation. Our missions are well-aligned, and we are truly pleased they have joined our effort,” said Coalition spokesperson Sarah Elliott.

“Our principles of advocating for strong policies that support furthering medical, health and scientific research are in line with CSBI’s goals, and we are excited to join the effort,” said, Mary Woolley, CEO of Research!America. “For research intensive companies to develop cutting-edge products, the tax code needs to be adjusted to better incentivize private investment.  The tax reforms proposed by the Coalition make sense for business and job creation, for patients, and for our nation’s global competitiveness.”

Read more here.

 

Letters to the Editor: Bench to Bedside: How Tax Reform Can Spur Lifesaving R&D, Jeffrey Hatfield, Vitae Pharmaceuticals. Tax Notes, August 12, 2013.

 

Small Business Tax Reforms Would Grow R&D Investment, Group Says. Elizabeth Orr, FDANews, August 5, 2013.

 

Ernst & Young Study: Tax Proposals Would Increase Investment by $20.6 Billion – Create 623,000 Jobs

Washington, D.C. (July 30, 2013) – The Coalition of Small Business Innovators (CSBI) released a study today showing that the three proposals supported by the group would increase total investment in small businesses by $20.6 billion and result in an estimated 623,000 jobs.

“Small businesses are a leading force for innovation in America and innovation is key for our economic health and prosperity. Small businesses face significant hurdles to raise the early stage capital required to fund this critical innovation,” said Jeff Hatfield, President and CEO of Vitae Pharmaceuticals. “Under the current tax code, some potentially life-changing seed and start-up technologies are never realized because private capital is not adequately rewarded or incented. We can encourage innovation, build our economy and create jobs by enacting these changes to the tax code.”

Read more here.

 

3 Tax Proposals for Entrepreneurs to Watch

According to The Washington Post, an economic analysis report by Ernst & Young identified three tax revision proposals already being considered by Congress that, while not currently attached to any legislation, could have a significant impact on small businesses and start-ups. 

One proposal would extend and expand a capital gains exclusion for the sale of qualified small business stock. Currently, a House bill seeks to make this a permanent tax break, increasing the size limit to $150 million in assets for eligible companies, which would provide investors with more companies to invest in. The analysis estimates that the adjustments will produce more than 350,000 new jobs. 

A second proposal would modify the type of losses that investors can subtract from their taxable annual income. The Post points out that the Senate Financial Committee, chaired by Baucus, has floated the idea of carrying forward "any losses from investments in research-intensive small businesses and use them to offset gains for tax purposes in the future." Not only will this decrease costs for investors and make raising capital easier, but it would lead to an additional $10.3 billion in investments each year, insists Ernst & Young report. 

The third proposal would enable an acquiring company or a new owner to use net losses for a small, pre-profit company to offset their taxable revenue. Researchers predict that this proposal would increase investments by $5.5 billion per year and create about 85,000 jobs, reports The Post.  Jana Kasperkevic, Inc.

For the full text of the article in Inc., please click here.

 

Could these three tax tweaks help new and small businesses create a half million jobs?

A few small tweaks to the tax code would encourage more investments in research-intensive start-ups and small businesses, helping those firms survive to profitability and create hundreds of thousands of jobs, according to a new report.

Congress is currently considering three tax revisions that, if enacted together, could drive up research and development investments by more than $20 billion and create an estimated 623,000 new jobs at new and small firms, according to a new economic analysis report by Ernst & Young... JD Harrison, The Washington Post, July 30, 2013.

For the full text of the article in The Washington Post, please click here

 

Tweak the Tax Code and Do Wonders for Bio Innovation. Peter Winter, BioWorld.

 

ANALYSIS: Tax reforms would boost R&D by $20bn, add 600k+ jobs

A new analysis from Ernst & Young has provided American biotechs and other small research-intensive businesses the evidence they need to back up their pleas to Congress to change certain tax rules for "pre-revenue" innovators, with the report showing adoption of three proposals could increase total investment in those companies by $20.6bn and result in the creation of about 623,000 new jobs.

The analysis, which was prepared for the Coalition of Small Business Innovators (CSBI), whose membership includes the Biotechnology Industry Organization, the Advanced Medical Technology Association and the Association of Clinical Research Organizations, takes aim at three sections of the US tax code – 469, 382 and 1202 (scripintelligence.com, 27 May 2013).

Tax reform targeting pre-revenue research companies "would greatly improve the state of innovation in America," Mr. Hatfield said. "It would allow research companies a much greater ability to attract and compete for investment dollars, critical capital, which can keep the most important discoveries rapidly moving forward to deliver more cures in the future. It would tangibly enhance the ability for those companies to advance, accelerate and expand their efforts on new breakthroughs." Donna Young, Scrip Intelligence, July 31, 2013.

For the full text of the article in Scrip Intelligence, please click here.

 

Small R&D businesses seek seat on tax reform train

The Coalition of Small Business Innovators on Tuesday proposed three sets of tax code changes that, according to a report by Ernst & Young, could boost investment in R&D-intensive, pre-profit companies like biotechs by about $20 billion annually. The proposals were released as President Obama announced his intention to negotiate a tax reform deal with congressional Republicans. Obama's proposal would reduce taxes on some business and increase spending on infrastructure. The possibility that Congress might pass tax reform legislation has stimulated massive lobbying by a wide range of interest groups seeking specific tax code changes. The coalition's three proposals would likely be passed as part of a larger bill reforming the U.S. tax code and not as standalone bills. 

The coalition's proposals are aimed at spurring investment in R&D companies that have yet to turn a profit and do not benefit from R&D tax incentives or breaks. One of the proposals would allow investors in R&D companies that meet certain size and asset requirements to carry forward the company's losses and tax credits to offset gains on the investor's taxable income. A second proposal seeks to relax limitations on applying losses to offset taxable revenue for new investors or an acquiring company, even if the investment or acquisition represents an ownership change. Currently, there are limits on the losses that can be carried forward if there is an ownership change. A third proposal would extend the exclusion on capital gains taxes to the sale of stock for qualified companies with $150 million in assets, up from $50 million currently, and extend the exclusion to companies organized as pass-through entities. BioCentury, July 30, 2013.

 

OUT TODAY: The Coalition of Small Business Innovators will release a study today at 11 a.m. outlining the economic benefits from expanding R&D tax deductions. Morning Tax chatted with Jim Greenwood, the CEO of Biotechnology Industry Organization, who said the coalition is working to craft legislation to help research-intensive companies that operate without product revenue but that still face tax liabilities. "Tax incentives for research and investment incentives are key to supporting their R&D. These pre-tax innovators are helping to lead the search for scientific breakthroughs and revolutionary technologies, and tax reform must encourage their growth," Greenwood said. Many R&D supporters argue that solely lowering tax rates is not enough for research companies and "Congress should bear in mind the needs of these pre-revenue innovators, which depend almost entirely on external capital to fund their lengthy and expensive development programs," during tax reform. Lauren French, Politico Morning Tax, July 30, 2013.

 

Innovation-focused tax reform for U.S. global competitiveness

All across the country, small businesses are working hard developing technologies to solve the greatest challenges facing our society. Their innovation efforts are fundamental to our nation’s economic health and prosperity. Small businesses are facing significant hurdles to raise the kind of early-stage capital required to fund innovation. Innovative research and development (R&D) projects are inherently handicapped by substantial start-up costs and a lengthy experimentation period. For small businesses working to sustain the R&D needed to make key breakthroughs, the ability to secure capital is the only way to keep progress moving.

The United States, like all great nations, has always relied on innovators to develop medicines, advance technologies, and bolster our economy. However, the United States currently ranks 5th in the Global Innovation Index.

American companies are increasingly contending with foreign competitors whose governments recognize the pivotal role that policy can play in cultivating innovative businesses.  As a result, foreign companies continue to grow their market share in fields like medicine, energy, and tech manufacturing. Innovation-based growth in the U.S. is continually falling further behind countries that exercise smarter long-term thinking. Geoff Davis, The Hill, July 16, 2013.

For the full text of the of the op-ed by Former Rep. Geoff Davis, please click here.

 

US Capitol Capsule: Coalition seeks tax reforms to spark innovation investment

The US tax code should recognize innovation as a "crucial part of the 21st century American economy," said the Biotechnology Industry Organization (BIO), one of the 15 organizations that make up the Coalition of Small Business Innovators (CSBI), which also includes the Neurotechnology Industry Organization, the Advanced Medical Technology Association and the National Council for Advanced Manufacturing, among others.

The coalition wants Congress to relax the so-called passive activity loss (PAL) rules in Section 469 of the Internal Revenue Code specifically for small research-intensive companies, which CSBI said would help stimulate private capital for research conducted by those firms.

Alan Eisenberg, executive vice president of emerging companies and business development at BIO, noted that, during the early 1980s, biotechs like Genzyme, Genentech and Amgen used the R&D limited partnership structure, in which individual investors would finance R&D projects and then use the operating losses and tax credits generated during the research process, which gave investors a tax incentive to support biotech research… Donna Young, Scrip Intelligence, May 27, 2013

For the full text of the article in Scrip Intelligence, please click here

 

Industry Advocates Ally to Lobby for Tax Reforms

New group draws together BIO, AdvaMed, and others seeking tax code changes.

The Biotechnology Industry Organization and 14 groups representing research-intensive industries have formed a new association to fight for tax reforms favorable to their investors.

The new Washington D.C.-based Coalition of Small Business Innovators ties together advocates for medical device makers, cutting-edge battery developers, and even commercial space flight pioneers. Together, they say they’re seeking to stimulate “sustained, private investment in small, highly innovative companies focused on the development of new technologies.” The Burrill Report, May 24, 2013.

 

Coalition of Small Business Innovators Launches

CSBI Encourages a Tax Code that Promotes Economic Growth and Creates Jobs

Washington, D.C. (May 21, 2013) – The Coalition of Small Business Innovators (CSBI) launches today with 15 organizations representing highly innovative pre-revenue small businesses, which employ millions of Americans in a broad array of U.S. industries.  The focus of the Coalition is to attract and sustain private investment in order to advance research, development, and manufacturing.

The Coalition’s legislative objectives are to modernize the current U.S. tax code to recognize and promote small business advancement as fundamental to the long-term growth of the U.S. economy. The Coalition’s objectives are:

·         Stimulating private capital for research by relaxing the passive activity loss rules in Section 469 for small research-intensive companies;

·         Removing financing restrictions in Section 382 to allow small research-intensive companies to retain their net operating losses generated by R&D expenditures; and

·         Improving capital gains treatment for small companies by changing the gross assets test in order for these companies to qualify for Section 1202.

“Innovation helps maintain America’s global competitiveness, sustains and creates American jobs, and encourages investments in the United States,” said Stephen J. Ubl, president and CEO of the Advanced Medical Technology Association (AdvaMed), a Coalition member.  “Pre-revenue small businesses are a leading force for innovation in America – and innovation is key for our economic health and prosperity.  The corporate tax system should be reformed to promote innovation through R&D and advanced manufacturing incentives.”

“Small business innovators are working every day to develop next generation technologies to solve the greatest challenges facing our society – whether it’s finding a cure for Alzheimer’s disease, developing new life-saving medical devices, or creating renewable energy and water technologies,” said Zack Lynch, Executive Director and Founder of the Neurotechnology Industry Organization.

Read more here.

 

ACRO Joins Coalition of Small Business Innovators

CSBI Encourages a Tax Code that Promotes Economic Growth and Creates Jobs

Washington, DC (May 21, 2013) – The Association of Clinical Research Organizations announced today it has joined the Coalition of Small Business Innovators (CSBI). CSBI is a national, non-partisan coalition of organizations dedicated to stimulating sustained, private investment in small, highly innovative companies focusing on the development of new technologies.

“Clinical research organizations essentially constitute the infrastructure for the development of new medical therapies and technologies for many start-up biopharmaceutical and device companies,” said John Lewis, Vice President of Public Affairs at ACRO. “Too often, our members see the development of promising new therapies delayed or abandoned because of a lack of funding. We support the Coalition’s objective to attract additional capital to research-intensive companies. These changes, along with needed revisions to the R&D tax credit, will ensure a vibrant biomedical research industry in the United States.”

Read more here.

 

SMALL BUSINESS COALITION LAUNCHES: The Coalition of Small Business Innovators is launching today, to push small-business advancement, spur changes to the tax code and support early-stage research. VennSquared is managing the coalition and running the message and media, and Venn Strategies' Stephanie Silverman is handling grasstops. Coalition members include: Algae Biomass Organization, Biotechnology Industry Organization, Advanced Medical Technology Association, and TechAmerica. Politico Influence, May 21, 2013.

 

BIO Joins Coalition of Small Business Innovators

CSBI Encourages a Tax Code that Promotes Economic Growth and Creates Jobs

Washington, DC (May 21, 2013) – The Biotechnology Industry Organization (BIO) announced today it has joined the Coalition of Small Business Innovators (CSBI).  CSBI is a national, non-partisan coalition of organizations dedicated to stimulating sustained, private investment in small, highly innovative companies focused on the development of new technologies.

BIO represents over 1,100 biotech innovators in all 50 states.  Nationwide, these biotech firms employ 1.61 million Americans and support an additional 3.4 million jobs, according to Battelle.  Emerging biotech companies face a decade-long, billion-dollar R&D timeline, virtually all of which must be funded by private investors.  These companies often have no product revenue to fund their search for breakthrough therapies, so the tax code is of vital importance in order to spur investment in lifesaving R&D.  In addition to lowering the corporate tax rate and the enactment of a competitive territorial tax system, Congress should take steps, through tax reform, to incentivize investment in innovative small companies like emerging biotechs and support the development of next generation technologies. 

Read more here.

 

CONNECT joins Coalition of Small Business Innovators

Although Congress is immediately focused on issues surrounding federal spending and the budget, sequester impacts, gun control, and immigration reform, beneath the headlines, House and Senate members and their staffs are systematically working to develop comprehensive tax reform packages that they hope will see action later in the year. With much of the focus on big ticket items like the corporate tax rate, the federal R&D credit, and closing tax loopholes, a coalition concerned with pro-innovation tax reform issues has sprung up to ensure that Congress and the Administration don’t lose sight of this critical sector of the economy.

Since the coalition’s pro-innovation tax reform goals are in sync with CONNECT’s recently released “Innovation Agenda for the 113th Congress,” CONNECT stepped up to join the new Coalition of Small Business Innovators (CSBI). The Coalition is formed to support “a U.S. tax code that recognizes innovation as a crucial part of the 21st century American economy. By itself, a lower corporate tax rate will not support growth and innovation in America’s small businesses, many of which are pre-revenue. Policymakers should specifically promote innovative research-intensive businesses through incentives for other companies, individuals, and funds to invest in small companies and support their research.”

Read more here.