Reps. Schneider, Smith Introduce Bipartisan Bill to Boost Investment in High-Tech Startups

Today, Congressman Brad Schneider announced new legislation to encourage investment in early-stage tech companies and spur innovation. The bipartisan bill was introduced with Rep. Jason Smith (R-MO).

H.R. 4175, the Invest in Innovative Small Businesses Act, would create a tax credit for investing in early-stage startups operating in a high-technology field during the pre-revenue stage. Examples include advanced materials, precision manufacturing, biotechnology, clean energy, medical sciences, and many more.

"This tax credit is an investment in our future, supporting the innovative start-ups at the cutting edge of technology that help ensure our economy will continue to grow and thrive," said Schneider. "I'm pleased to work across the aisle with my colleague Rep. Smith of Missouri on this legislation to connect more high-tech startups with the funding they need to succeed."

Qualified companies must have fewer than 100 employees, be headquartered in the U.S. and have been in existence for less than 5 years. The credit would be equal to 25 percent of the qualified equity investments made by a qualified investor during the taxable year.

Earlier this year, Schneider, introduced H.R. 2393, the Accelerate Our Startups Act, which would create a grant program within the Small Business Administration available to small business accelerators and incubators, which provide critical support to emerging new businesses.