A group of state House Republicans announced a package of bills designed to support and promote startup initiatives across Pennsylvania. The bills aim to capitalize on the state’s assets, including its workforce and geographic location, to prevent losing opportunities to other startup-friendly areas like Silicon Valley and New York.
The eight bills are 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).
Armanini has proposed three bills within the package. The first would designate March 18-24 as “Commonwealth Startup Week” to highlight Pennsylvania’s startup businesses. His second proposal aims to establish a task force on Startup Venture Opportunities, composed of startup and venture founders, to grow startup initiatives across the state. Armanini’s third bill seeks to create a Venture Capital Ecosystem Development Program, providing grants and technical assistance to universities, local governments, and non-profit organizations for outreach efforts.
“Pennsylvania’s economy and way of doing business can often be compared to a slow-moving vessel,” Armanini said. “We need to strike a balance between a haphazard method of growth and our current over-cautious approach.”
Gaydos’ legislation proposes uncapped and non-expiring operating loss deductions for in-state startups. This aims to help new businesses that require large up-front investments by allowing them non-expiring net operating loss carry forwards.
“New business creation is a large part of building our future,” said Gaydos. “By extending the net operating loss carry forward tax deduction… Pennsylvania can be competitive with other states.”
Bernstine’s bill would establish a Student Startup Incubator Network, empowering student entrepreneurs in Pennsylvania.
“We need to ensure we are providing ample opportunity for young entrepreneurs,” said Bernstine.
Brown has proposed two pieces of legislation: one establishing the Startup Investment Tax Credit connecting startups with early-stage investors, and another leveraging the Research and Development Tax Credit by investing an additional $12 million into technology research by startups.
“As a former small business owner, this legislation would have helped me a great deal,” said Brown.
Stender’s bill seeks to restore funding for venture investment by directing a portion of the Fantasy Sports Tax to various programs supporting early-stage startups.
“Pennsylvania is home to many early-stage startups that drive our local and state economy,” said Stender.
