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Coalition of Small Business Innovators Launches
CSBI Encourages a Tax Code that Promotes Economic Growth and Creates Jobs
Washington, D.C. – 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.
Coalition member companies are also pioneers in the U.S. economy. R&D is the foundation of an innovative 21st century U.S. economy and is responsible for the creation of millions of competitive jobs across all 50 states.
CSBI believes that, through the tax code, Congress and the Administration should enact policies that foster greater private investment in small business innovation in order to maintain America’s global competitiveness, sustain and create American jobs, and incentivize investments in the United States to help combat increased foreign competition.
The Coalition supports 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 in America’s small businesses, many of which are pre-revenue. Comprehensive tax reform should go further than “broadening the base and lowering the rate.” Policymakers should specifically promote innovative pre-revenue research-intensive businesses through incentives which spur private investment, encouraging other companies, individuals, and funds to invest in small companies and support their research.
The Coalition of Small Business Innovators believes Congress can and should incentivize further development and improve America’s economic health by recognizing the importance of innovation and its potential to save lives, create new technologies, spur scientific advancement, and create vital jobs in small businesses. Federal tax policy that recognizes the special demands placed on highly innovative pre-revenue companies will speed the development of products to vastly improve the lives of Americans and people around the world.
Coalition members include:
Advanced Medical Technology Association (AdvaMed)
Algae Biomass Organization (ABO)
Association of Clinical Research Organizations (ACRO)
Biotechnology Industry Organization (BIO)
Center for Innovative Technology (CIT)
Commercial Spaceflight Federation (CSF)
Electricity Storage Association (ESA)
Fuel Cell & Hydrogen Energy Association (FCHEA)
Medical Device Manufacturers Association (MDMA)
NanoBusiness Commercialization Association (NanoBCA)
National Council for Advanced Manufacturing (NACFAM)
Neurotechnology Industry Organization (NIO)
Water Innovations Alliance (WIA)
More information about the coalition can be found at: www.smallbusinessinnovators.org