Walorski introduces bipartisan bill providing tax breaks to medical tech startups

U.S. Rep. Jackie Walorski (R-IN) recently introduced bipartisan legislation that would provide liquidity to innovative medical technology businesses impacted by the COVID-19 pandemic.

Rep. Walorski, on July 31, cosponsored the IGNITE American Innovation Act, H.R. 7917, with bill sponsor U.S. Rep. Dean Phillips (D-MN) to provide for advance refunds of certain net operating losses and research expenditures related to the pandemic, according to the congressional record summary.

If enacted, Rep. Walorski said that H.R. 7917 “will give startups greater opportunity to continue growing, innovating, and developing life-saving technologies at a time when we need them more than ever.”

Specifically, H.R. 7917 would provide liquidity to small and mid-size businesses that were unable to utilize tax provisions under the Coronavirus Aid, Relief, and Economic Security (CARES) Act by allowing them to monetize up to $25 million in accumulated tax assets, according to a bill summary provided by Rep. Walorski’s office. 

Additionally, H.R. 7917 would provide a bonus in tax assets generated by research and development of products to prevent, diagnose, and treat COVID-19, among other provisions, according to the summary.

“America’s recovery from this unprecedented health and economic crisis will be driven by our innovative and entrepreneurial spirit,” said Rep. Walorski. “High-tech innovators and medical device manufacturers – including many in northern Indiana – will play a vital role in improving health care, discovering treatments and cures, rebuilding our economy, and creating good jobs.” 

A coalition of advocates for tech startups supports H.R. 7917, including the Medical Device Manufacturers Association, the National Venture Capital Association, the Biotechnology Innovation Organization, TechNet, the Advanced Medical Technology Association, the Center for American Entrepreneurship, the Angel Capital Association, and Technology Councils of North America.