Legislative package to support startup initiatives introduced in House

A package of bills designed to support startup initiatives across Pennsylvania were introduced in state House Republicans Wednesday.

Sponsored by Reps. Mike Armanini (R-Clearfield/Elk), Valerie Gaydos (R-Allegheny), Aaron Bernstine (R-Lawrence/Butler), Marla Brown (R-Lawrence) and Michael Stender (R-Northumberland/Montour), the eight bills are intended to capitalize on the state’s assets, and to make the most of opportunities that might otherwise go to Silicon Valley, New York or other startup friendly areas, legislators said.

“Pennsylvania’s economy and way of doing business can often be compared to a slow-moving vessel, which takes forever to ‘turn’ and travel with the wind in its sails,” Armanini said. “We need to strike a balance between a haphazard method of growth and our current over-cautious approach.”

Armanini introduced three bills – one that would designate March 18-24 “Commonwealth Startup Week,” another that would establish a task force on Startup Venture Opportunities, and a third that would establish a Venture Capital Ecosystem Development Program to provide grants and technical assistance to universities, local governments and non-profit organizations and provide seed funding for outreach efforts and help startups hone their efforts to secure additional funding.

Legislation introduced by Gaydos’ would provide uncapped and non-expiring operating loss deduction to in-state startups.

“New business creation is a large part of building our future,” Gaydos said. “The more we can do to fuel innovation and innovative companies, the better our futures will be. However, many new companies operate at a loss in the first few years. By extending the net operating loss carry forward tax deduction both in the amount that can be deducted and the length of time in which one can take the deduction against future gains, Pennsylvania can be competitive with other states.”

A bill to establish a Student Startup Incubator Network was introduced by Bernstine, in an effort to empower student entrepreneurs to build companies in Pennsylvania.

“We need to ensure we are providing ample opportunity for young entrepreneurs to start and grow their business right here in the Commonwealth,” Bernstine said. “Harnessing entrepreneurial talents among young Pennsylvanians and easing constraints of the labor market is vital to future economic growth.”

One piece of legislation introduced by Brown would establish the Startup Investment Tax Credit focused on connecting startups to early stage investors, while a second would invest an additional $12 million into the Research and Development Tax Credit to incentivize technology research by startups.

“As a former small business owner, this legislation would have helped me a great deal,” Brown said. “I know the challenges startup businesses face. Early investment into startup businesses is critical to their initial success. My legislation invests in startups from the beginning to fully support employers and employees while encouraging further growth.”

And finally, Stender’s bill would restore funding for venture investment back to a level commensurate with the technology sector’s importance, he said, by directing a portion of the Fantasy Sports Tax to the Ben Franklin Technology Partners, the Venture Investment Program and the Life Science Greenhouses.

“Pennsylvania is home to many early-stage startups that drive our local and state economy, and we must continue to provide funding to these high-impact ventures,” Stender said. “My legislation would restore the Commonwealth’s investment to a level proportionate with the importance of startups and entrepreneurs.”