Two US Senators have introduced a bill to the Senate that, if passed, will support energy storage entrepreneurs. The Start-up, Jobs and Innovation Act aims to stimulate innovation and generate investment in ground-breaking research and development for start-ups and growing businesses, including pre-revenue energy storage companies, through reforms to the existing tax codes.
Several technology stakeholder groups including the Electricity Storage Association (ESA) have formed a Coalition of Small Business Innovators to support the bill.
Katherine Hamilton, Policy Director for the ESA, said: “This legislation will provide the time needed to develop the next generation of technologies and breakthroughs, while creating high-quality American jobs and ensuring America remains competitive on a global scale. Creative pro-growth legislation showcases energy storage as a secure driver of economic activity and creator of sustainable jobs. The Electricity Storage Association is pleased to support this bill and looks forward to the long-term growth that small businesses will provide our economy as a result of this legislation.”
The new act would modernise the current tax code to work in favour of small businesses, which would assist technology startups that currently rely on private investment to bring innovations to market.
The Start-up Jobs and Innovation Act would allow companies to partner with their investors to conduct research through R&D Partnership Structures. Only start-up and small companies dedicated to R&D would be eligible to utilise R&D Partnership Structures, so investors will be incentivised to invest at an earlier stage, when the capital is most needed.
The Senators introducing the act are Democrat Robert Menedez and Republican Pat Toomey; bipartisan support will assist the progression of the Act.