The Start-up Jobs and Innovation Act (S.1658) was introduced to allow small R&D-focused companies to partner with their investors on research projects, and allow both parties to realize business and tax benefits.
The SJIA would amend the Internal Revenue Code to:
(1) make permanent the increase to $500,000 of the expensing allowance
for business assets, including computer software, and the treatment of
qualified real property as depreciable business property; (2) make
permanent the 100% exclusion from gross income of gain from the sale or
exchange of small business stock; (3) increase and equalize the tax
deduction for business start-up expenses and organizational
expenditures; (4) increase from $5 million to $10 million the gross
receipt test used to determine the eligibility of small businesses to
use simplified cash accounting and inventory rules; and (5) exempt from
passive loss rules any research activity carried on by a high technology
research small business pass-thru entity.
MichBio supports enactment of S. 1658 to encourage early-stage investment in innovative research.