December 20, 2019

Congressman Neguse Introduces Bipartisan Bicameral Legislation to Invest in Startups and Small Businesses

Washington, D.C.— Today, Congressman Joe Neguse, who represents Colorado’s 2nd Congressional District and serves on House Leadership, introduced bipartisan bicameral legislation to double the refundable research and development (R&D) tax credit for startups and extend it to more small businesses. The R&D tax credit supports the efforts of businesses to invest in the development of new, innovative products that lead to job creation and a stronger economy.

“From tech companies in Boulder and Fort Collins to the famous ski resorts in Vail and Breckenridge, to small businesses across Colorado’s 2nd District, many of which I have had the pleasure of visiting, our district is known around the nation for our innovation and entrepreneurship,” said Congressman Joe Neguse. “When we invest in creativity and innovation, we are investing in economic opportunity and growth for future generations. Expanding the R&D tax credit not only helps these innovative businesses succeed, but it also has the ripple effect of growing our economy as a whole.”

“Small business continues to be the economic and job growth engine of the economy,” said Seth Levine, Partner at Boulder-based investment firm Foundry Group. “This bipartisan legislation championed by Rep Neguse will help spur investment by businesses in the R&D activities that will drive their future growth and success.”

The bipartisan Research and Development Tax Credit Expansion Act would expand the R&D tax credit for new and small businesses by doubling the refundability of the credit from $250,000 to $500,000, extending the credit to all small businesses with less than $10 million in annual revenue, and expanding how the refundable credit is claimed against payroll taxes. The legislation also strengthens incentives for startups to increase R&D investment and removes barriers that limit startups’ ability to claim the credit. Legislation in the Senate is led by Senator Maggie Hassan of New Hampshire and Senator Thom Tillis from North Carolina. 

Congressman Neguse earlier this year launched the Congressional Caucus on Innovation and Entrepreneurship, alongside Congressman Van Taylor (R-TX) to promote federal policies that create jobs and to encourage the growth of early-state innovative companies.