Jun 18, 2013
CompTIA Small Business Spotlight: Incentivize Growth and Innovation for Small IT Businesses
Washington, D.C., June 18, 2013 – A bipartisan group of senators and representatives on Capitol Hill have recognized the potential for startup 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, according to CompTIA, the non-profit association for the information technology (IT) industry.
Startup Act 3.0 offers straightforward solutions to some of the problems facing small startup companies. It encourages capital investment in startups; incentivizes these businesses to invest in research and experimentation; and removes some of the barriers that currently limit access to the most talented workforce.
The Bill also proposes tax benefits that are meaningful to economic growth and provide a pathway to innovation for the SMB IT industry.
In conjunction with National Small Business Week June 17-21, CompTIA is spotlighting several of the issues affecting its small business members and offering solutions to address those challenges.
Investing in technology infrastructure and raising capital are essential for customers who work side-by-side with Clever Ducks, an IT professional services company based in San Luis Obispo, Calif.
“At Clever Ducks, we know our customers need to invest in new technology to improve productivity. However, during the economic downturn over the last few years, many of our clients haven’t been able to update their technology infrastructure, because they’ve had to make hard choices in their own businesses. Technology infrastructure needs to be replaced as it ages and much of today’s equipment used by small businesses has reached its maximum life. There’s a lot of pent-up demand that hasn’t been fulfilled,” said Amy Kardel, Chief Administrator Officer of Clever Ducks.
“A part of the problem has been inability to raise capital. That’s why we support Startup 3.0, which offers straightforward solutions to some of the problems facing many small startup companies who are our customers. This legislation encourages capital investment in startups by providing a 100-percent capital gain exclusion for certain startup investments. It also incentivizes these businesses to perform research and experimentation by allowing an R&E credit to be offset against payroll taxes. In addition to freeing up capital for these businesses, it also removes some of the barriers that currently limit access to the most talented workforce. We believe the Startup 3.0 legislation will provide both meaningful growth and a pathway to innovation for the SMB IT industry.
“We also believe it is critical that small businesses make technology-related investments to improve productivity. So in addition to the provisions of Startup 3.0, we also support the permanent extension of section 179, for small business expensing, at its current level. Unless legislation is enacted this year, the small business expensing limitation will drop from $500,000 to $25,000 beginning in 2013. This will certainly stifle investments in new equipment and technologies needed by these small businesses to remain competitive.
“Our ultimate goal for Clever Ducks and our customers is to continue to grow and prosper; together, we sustain thousands of high-paying jobs for our communities. Accordingly, we need to maintain access to both capital and the most talented workforce, as well renew our investments in the most modern business assets and processes. That’s why we support both Startup 3.0 and a permanent extension of the small business expensing limitation.
“We are proud to support CompTIA as it continues to lead in advocating for issues important to small tech businesses.” Kardel said.
Clever Ducks won the 2013 Outstanding Business of the Year by the UC Merced Small Business Development Center Regional Network (UC Merced SBDC). They will be honored in a ceremony this month for the success of their business and for embodying America’s entrepreneurial spirit, as well as for steady growth, commitment to excellence and community involvement.
Continuing its support for Startup 3.0, CompTIA will moderate a House Small Business IT Caucus panel titled “The Value & Impact of Startup Act 3.0” on June 28 at 11 a.m. in Room 2360 of the Rayburn House Office Building.
Distinguished entrepreneurs will discuss how provisions of Startup Act 3.0 would expand opportunities for their small businesses to improve innovation, create new products and services, and thus grow our nation’s job base and economy. The panel will explore both immigration and tax provisions included in the Startup 3.0 legislation, as well as the impact on the future strength of the IT industry.
• Raj Khera, CEO, MailerMailer
• David Pauken, CEO, Convoke Systems
• Doug Humphrey, Serial Entrepreneur
• Morris Panner, CEO, DICOM Grid.com
• Cynthia Traeger, Director, Founder Institute of DC
• Lamar Whitman of CompTIA as Moderator
For more on incentivizing growth and innovation for small IT businesses, please visit the CompTIA News Room. To learn more about Capitol Hill issues affecting small businesses, visit www.techvoice.org.
TechVoice is a partnership of the CompTIA, the Technology Councils of North America (TECNA), and participating regional technology associations. For more information, visit www.techvoice.org.
CompTIA is the voice of the world’s information technology industry. Visit http://www.comptia.org/home.aspx or follow CompTIA at http://www.facebook.com/CompTIA and twitter.com/comptia.
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