Rep. John Garamendi, D-Walnut Grove, is a co-author of the Innovative Technologies Investment Incentive Act, which was reintroduced last week in Congress. The bill is designed to create jobs, accelerate economic growth and make targeted investments that keep America on the cutting edge of innovation, he said.
“High-tech businesses are the shining stars of our economy,” Garamendi said. “Northern California’s technology clusters, including the city of Davis, have seen these businesses’ remarkable ability to generate economic growth and jobs.
“However, there is a ‘valley of death,’ a slew of barriers that prevent an idea from becoming a profitable product, and foremost among these is stable financing,” he continued. “The Innovative Technologies Investment Incentive Act helps small businesses overcome these challenges and turbocharge America’s job creation machine.”
Added Rep. Chris Van Hollen, D-Md., “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,” Van Hollen continued.
Joining Garamendi and Van Hollen in introducing the legislation are Reps. Betty McCollum, D-Minn.; Jared Polis, D-Colo.; Dutch Ruppersberger, D-Md.; and Allyson Schwartz, D-Pa.
Colorado’s growing clean energy industry is an essential part of our economy and incentivizing investment is a great way to spur further innovation and job creation,” Polis said. “I am proud to work with my colleagues to replicate this successful program so that innovative companies across the country can benefit from the same incentives that have proven effective in Maryland.”
Added Ruppersberger, “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. It’s exactly the type of common-sense jobs bill that lawmakers should be focused on right now.”
The Innovative Technologies Investment Incentive Act will:
* Accelerate innovation by providing a 25 percent tax credit for qualified equity investments in eligible high technology and biotechnology small business concerns;
* 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 grant awards;
* Control costs by establishing a per-company cap for the innovative technology investment credit at half the value of the receiving company’s SBIR award and an initial program cap of $500 million; and
* Reward long-term investment by requiring a holding period of at least three years for qualified investments.