05/23/2012: STARTUP Act, S.3217, Introduced in the Senate on 05/22/2012 by Five (5) Senators (Bi-Partisan)
U.S. Senator Jerry Moran (R-Kan.), cosponsored by four other Senators, Mark Warner (D-Va.), along with Marco Rubio (R-Fla.) and Chris Coons (D-Del.), and Sen. Blunt, introduced yesterday Startup Act 2.0 – bipartisan legislation that picks up where the JOBS Act left off by doing more to jumpstart the economy through the creation and growth of new businesses. Startup Act 2.0 builds upon the original Startup Act, introduced by Sens. Moran and Warner in December 2011, and the AGREE Act, introduced by Sens. Coons and Rubio in November 2011.
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;
Creates an Entrepreneur’s Visa for legal immigrants, so they can remain in the United States, launch businesses and create jobs;
Eliminates the per-country caps for employment-based immigrant visas – which hinder 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;
Creates 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 support university initiatives designed to bring cutting-edge research to the marketplace more quickly where it can propel economic growth;
Requires all government agencies to conduct a cost-benefit analysis of all proposed “major rules” with an economic impact of $100 million or more. This new requirement will help determine the efficacy of regulations and their potential impact on the formation and growth of new businesses; and
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 on new business formation and the entrepreneurial environment, lawmakers will be better equipped to encourage entrepreneurship with the most successful policies.
Please note that this bill includes elimination of per country limit for employment-based immigrant visas, which is currently stuck in the Senate in the form of H.R. 3012. Please also note that one of the co-sponsors is Senator Marco Rubio who is expected to introduce a watered-down DREAM bill in the Senate soon. The immigrant community was curious whether Senator Rubio will tie two bills (STARTUP bill and DREAM bill) together to make both bills successfully pass the Congress, but report indicates that Senator Rubio wants to see each of these two bills go on its separate and own path and separate merit. Hmm..... Interesting. Please stay tuned for the full text of the bill.
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