The following statement can be attributed to Engine’s Executive Director, Kate Tummarello:
“Engine applauds Rep. Phillips and Rep. Walorski for reintroducing the IGNITE American Innovation Act, which will help to provide startups with the liquidity they need to continue to see the nation through pandemic recovery and accelerate R&D efforts for America's high-tech startups and innovators.”
The IGNITE American Innovation Act would allow high-growth startups to monetize up to $25 million of accumulated net operating losses and research and development credits. Because many startups in their early stages are operating at a loss, they are unable to take advantage of existing provisions in the tax code to reduce their income tax liability. The IGNITE American Innovation Act would spur startup growth by helping to give startups the capital they need to continue to drive innovation and U.S. job growth.
