US MP Jackie Walorski (R-IN) introduced bipartisan law on May 28 that would grant startups upfront reimbursement of certain net operating losses and research expenditures made under previous Congressional legislation during the ongoing COVID period. 19 pandemic.
“I am grateful to be able to work across the aisle to empower small and medium-sized businesses and drive innovations when we need them more than ever,” said Rep. Walorski.
The IGNITE American Innovation Act, HR 3623, the Rep. Walorski along with the US Rep. Dean Phillips (D-MN) and US Representative John Curtis (R-UT) would enable small and medium-sized businesses left out of the CARES Act to gain access to quick and efficient capital to support the country’s economic recovery to speed up, according to a legislative summary by the office of Rep. Walorski.
“High-tech innovators like medical device manufacturers in northern Indiana will be critical to rebuilding our economy after the COVID-19 pandemic,” said Rep. Walorski. “Providing tax breaks to innovative startups is a sensible way to ensure that they can continue to develop life-saving technologies, discover treatments and cures, and create good jobs.”
When HR 3623 goes into effect, it would allow growth companies to monetize up to $ 25 million in accumulated net operating losses and R&D credits; and doubled the value of R&D credits generated by researching products to prevent, diagnose, or treat COVID-19 and future pandemic threats, according to the bill’s summary.
HR 3623 has received support from the Medical Device Manufacturers Association, TechNet, the National Venture Capital Association, the Center for American Entrepreneurship, the Technology Councils of North America, the Biotechnology Innovation Organization, and the Advanced Medical Technology Association.