Startup executives and venture capitalists are nearly unanimous in their glowing support of U.S. Sen. Mark Pryor’s recent proposal to give tax breaks to so-called angel investors who fund and provide equity for early stage companies.
The question remains, however, on whether or not the bipartisan bill has enough muscle to compete against the small mountain of similar proposals now before the Senate Finance Committee with the stated goal of "cutting taxes and creating new jobs."
Pryor, D-Ark., introduced Sen. Bill 256 in early February to encourage angel investors to invest in small companies that have potential for significant economic growth and job creation.
Sen. Bill 256, known as “The American Opportunity Act,” will provide a 25% federal income tax credit for investing in qualified small businesses, including companies in the advanced manufacturing, aerospace, biotechnology, clean energy and transportation sectors. Qualified small businesses can receive up to $2 million per year in tax credit-eligible cash equity investment, of which no more than $1 million can come from a single investor. The funding is estimated to stimulate $2 billion per year of new capital formation.
To read the full, original article click on this link: Investors offer advice, praise for Pryor jobs bill | The City Wire
Author: Wesley Brown
