New Push For Support of the Startup Innovation Credit Act of 2013

Written by admin   // July 30, 2013   // 0 Comments

S.193 gives small startup companies a tax credit against payroll tax

by C. Daniel Baker, Black Enterprise

A new push to muster information technology (IT) industry support for the Startup Innovation Credit Act of 2013 was launched today by TechVoice, the partnership of CompTIA, the global non-profit association for the IT industry, the Technology Councils of North America (TECNA) and participating regional technology associations.

CompTIA ChannelCon 2013, the premier education and partnering event for the IT channel, served as the venue for the kickoff of the effort to press Congress to pass the Startup Innovation Credit Act of 2013 (S.193).

The Startup Innovation Credit Act of 2013 will provide support for innovative startup companies to invest in R&D. It allows an R&D tax credit against payroll tax liability, as opposed to income tax liability.

“This bipartisan legislation would give a huge boost to the innovative startup companies that fuel our nation’s economy and create new high-paying jobs,” said Todd Thibodeaux, president and chief executive officer, CompTIA. “Hundreds of these companies are here with us in Orlando this week for ChannelCon. We’re encouraged by their strong support and commitment to seeing that this important legislation becomes law.”

“Most startups don’t generate income tax liability in the early years, so they can’t take advantage of the tax credits given for R&D,” Thibodeaux explained. “This means that most startups don’t receive any current economic benefit from the existing R&D tax credit.”

“S.193 fixes that by giving small startup companies a tax credit against payroll tax, allowing startups to keep more cash on hand,” he continued. “The longer a startup can keep cash, the longer they can live and grow while their new innovations get ready for market.”

All this week, ChannelCon attendees will be encouraged to add their support for the bill by visiting TechVoice’s new Support the Startup Innovation Credit Act of 2013 website to promote passage of the legislation. They’re also encouraged to send letters of support to Senators and members of Congress and to spread the word about the legislation with colleagues and partners.

In addition to CompTIA and TECNA, more than a dozen other organizations have pledged their support for S.193.


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