Startup Act 2.0 includes the following provisions:
- Creates a new STEM visa so that U.S.-educated foreign students, who graduate with a master’s or Ph.D. in science, technology, engineering or mathematics, can receive a green card and stay in this country where their talent and ideas can fuel growth and create American jobs. It also creates an Entrepreneur’s Visa for legal immigrants so they can remain in the United States, launch businesses, create jobs and eliminate the per-country caps for employment-based immigrant visas, which hinders U.S. employers from recruiting the top-tier talent they need to grow.
- Makes permanent the exemption of capital gains taxes on the sale of startup stock held for at least five years, so investors can provide financial stability at a critical juncture of firm growth. It also would create a targeted research and development tax credit for young startups less than five years old and with less than $5 million in annual receipts. This R&D credit is designed to allow startups to offset employee taxes, freeing up resources to help these young companies expand and create jobs.
- Uses existing federal R&D funding to better support university initiatives designed to bring cutting-edge R&D to the marketplace more quickly, where it can propel economic growth.
- Requires government agencies to conduct a cost-benefit analysis of proposed “major rules” with an economic impact of $100 million or more. This new requirement will help determine the potential impact of proposed regulations on the formation and growth of new businesses.
- And Startup Act 2.0 directs the U.S. Department of Commerce to assess state and local policies that aid in the development of new businesses. Through the publication of reports highlighting these “best practices” from across the country, policymakers will be better equipped to encourage entrepreneurship by adopting the most effective and successful policies.
Startup Act 2.0 has been endorsed by TechAmerica, Financial Services Forum, National Small Business Association, CONNECT, CEA and the Computer and Communications Industry Association.