Tax and compliance costs consistently force small and medium-sized businesses (SMBs) in information technology (IT) to divert much needed resources away from their core businesses, restricting growth and…
By CompTIA Blog
July 31, 2013
Earlier this year, a bipartisan group on Capitol Hill recognized the potential for start-up companies and introduced the “Startup Act 3.0” bill in both the Senate and the House of Representatives. This legislation aims to spur small business entrepreneurship on a national scale, advancing innovation and our national economy.
Startup 3.0 legislation offers straightforward solutions to some of the problems facing many small start-up companies. It encourages capital investment in start-ups by providing a 100 percent capital gain exclusion for certain start-up investments. It also incentivizes these businesses to perform research and experimentation by allowing an R&E credit to be offset by payroll taxes. In addition to freeing up capital for these businesses, it also removes some of the barriers that currently limit their access to the most talented workforce.
CompTIA believes the Startup 3.0 legislation will facilitate both meaningful growth and a pathway to innovation for SMBs. Providing real support for the science, technology, engineering and mathematics (STEM) workforce will certainly further our national efforts to create and sustain high-paying tech jobs.
We support steps to create new visas for U.S.-educated students and entrepreneurs. Providing visas for world-class talent will help to fill the thousands of IT-related jobs currently open, furthering opportunities for starting and growing new businesses in the U.S.
We are also supportive of the small business research and development credit included in this legislation, which will help level the playing field between small start-ups and big corporations. Start-ups are an important incubator of new innovations, and we encourage and support these new small companies.
We urge Congress to move quickly to pass this legislation. This is an important step that will aid in our continuing economic recovery. The strength of the IT industry relies on its ability to grow, innovate and adjust to market trends. SMB IT companies across the nation are providing services to all major industries from healthcare to agriculture. The success of these industries relies on the IT industry and the services they provide.
The U.S. IT industry continues to add jobs and strengthen the economy. Additionally, we remain competitive in a rapidly evolving global marketplace. While the industry remains strong, we must continually identify ways to mitigate the burdens on these companies in an effort to increase their growth potential, which translates into sustaining and generating high-paying jobs.
We believe Startup 3.0 is a mechanism to promote additional growth and opportunity for the SMB IT industry to remain globally competitive.
Todd Thibodeaux is president and chief executive officer of CompTIA.