Senator Coons spoke Wednesday at the first annual New Castle County Economic Development Luncheon. The lunch discussion focused on ways to foster and develop a strong economic and entrepreneurial system in New Castle County and across Delaware.
Chris reiterated his commitment to Delaware startups, noting that new businesses are powerful drivers of job creation and economic recovery. Over a 25 year period between 1980 and 2005, most of the net new jobs in America – about 40 million jobs – were created by firms that were five years old or less.
Since he arrived in the Senate, Chris has used his private sector experience to shape a number of job creating pieces of legislation that support innovative startups and entrepreneurs. He has especially focused on making the Research and Development Tax Credit available to newer businesses, in addition to more established companies.
To read more about Chris’ work supporting job creation and economic competitiveness, click here.
Last week, Senator Coons took part in a launch celebration unveiling the new Horn Program in Entrepreneurship at UD.
Made possible by a generous gift from Charles and Patricia Horn, this program will encourage students to pursue the kind of entrepreneurial ideas that will power Delaware’s economy for years to come.
The Horn program will enhance and expand entrepreneurial studies at UD and be made up of a variety of initiatives like the Venture Development Center, a student business incubator, Hen Hatch, UD’s premier startup funding competition and an annual President’s Forum on Innovation and Entrepreneurship. It will also support new curricular offerings at both the undergraduate and graduate levels.
Chris believes that supporting our innovators and entrepreneurs is critical to our economic recovery.
To read more about his work to create jobs and promote American economic competitiveness, click here.
The most important responsibility I have as your senator is to support job creation. Our economy is starting to recover, but there are still far too many Delawareans out of work. That is why we are continuing to host job fairs across the state, connecting job seekers with employers ready to hire, and working to help Delaware businesses access the capital they need to grow and create new jobs.
One of the keys to fueling American economic growth and ensuring we remain competitive in the global economy is putting in place policies that support and sustain innovation. American ingenuity has always been at the core of our economic success. From inventing the light bulb to perfecting the search engine, we have never lacked good ideas. The challenges of the global economy may be new, but America’s advantage – our entrepreneurs and innovators – remains the same. We just have to support their work so they can continue to grow and create jobs.
Over the last few months, I’ve partnered with Republicans and Democrats alike to introduce legislation that will support our most innovative companies – the ones with the highest job-creation potential.
Watching cable news, it would be easy to think the Senate is stuck in partisan gridlock, and to an extent, that is true. Yet there are also decent people of both parties who want to get things done, especially when it comes to our economy. To those of us in Delaware, that is the rule, rather than the exception, but unfortunately, Washington doesn’t always work the same way.
That is why I was so glad to find partners like Senator Marco Rubio from Florida and Senator Jerry Moran from Kansas. They are both conservative Republicans, but I’ve worked with them and Senator Mark Warner, a Democrat from Virginia, on a series of job-creation proposals we bundled together in a bill called the Startup Act 2.0.
The Startup Act 2.0 is designed to promote innovation and jumpstart the economy through the creation and growth of new businesses and jobs. It is based on research showing that for almost 30 years, companies less than five years old have created almost all the net new jobs in America – at an average of about three million new jobs a year. So we pulled together ideas that help bring university research from the lab to the marketplace, ideas that encourage investments in new startup companies and more in the hopes of creating an environment where entrepreneurs can succeed.
Our bill contains an array of job-creating measures for small businesses, such as exempting capital gains taxes on investments in startups, which the independent Kauffman Foundation tells us would unlock $7.5 billion of new investment. It also supports innovative small businesses with an expanded research and development tax credit, an idea Senator Rubio and I introduced together last fall as part of our bipartisan AGREE Act and something I will continue fighting to pass because it is critical for Delaware small business.
With the right resources, American products can be manufactured in Delaware and remain competitive in the global marketplace. It is happening every day across our state, at companies of all sizes, including Miller Metal in Bridgeville, a local shop that is going head-to-head with Chinese metal fabricators – and winning.
We have to continue to support this kind of entrepreneurship and innovation in all sectors of our economy, including in the energy sector. There is going to be a clean energy economy in the years ahead, the only question is whether American businesses, families and workers will be at the center or the periphery. If we want to stay competitive in the race for homegrown, affordable, renewable sources of energy, we have to make sure our financial innovation keeps up with our technological innovation.
That is why this spring, I introduced bipartisan legislation to level the playing field and make a tax credit that has long supported oil and gas projects available to renewable energy projects like wind, solar and biofuels. The bill I wrote with Senator Moran, the Master Limited Partnership Parity Act, could bring significant capital off the sidelines to give clean energy innovators and projects the critical private sector support they need to get their product to the marketplace.
The bottom line is that America’s researchers, business leaders, innovators and entrepreneurs are already working to help create jobs and ensure American competitiveness in the global economy. We just have to support and sustain their hard work, and we cannot take the rest of the year off just because there’s an election coming up. Even in this difficult, partisan atmosphere, we have to find ways to work together and get things done. Innovation will drive American economic competitiveness for generations to come, and our job is to help our innovators and entrepreneurs do their jobs.
This week, members of the U.S. House introduced a bipartisan companion to the Startup Act 2.0, which was introduced in the Senate by Senator Coons, along with Senators Moran, Rubio and Warner.
The House companion to the Startup Act 2.0, introduced by Reps. Michael Grimm (R-NY) and Loretta Sanchez (D-CA), shows continued strong, bipartisan momentum for this important legislation to jump-start our economy and help businesses grow and create jobs.
“Startup 2.0 is about creating American jobs,” Rep. Grimm said in a press release. “Too often we educate the world’s best and brightest in STEM fields, only to send them back to countries like India and China to open businesses and compete against us. This bill will keep top talent here in the U.S. to build businesses that hire Americans, and drive U.S. innovation and competitiveness.”
“As our economy continues to recover, we must further enable our entrepreneurs to grow and to create jobs,” Rep. Sanchez said in a press release. “Startup 2.0 legislation is a natural follow-up to our efforts to jumpstart the economy and it is exactly the kind of legislation the United States needs to keep up with India, China and the rest of the global market.”
Senator Coons joined his colleagues on the Senate floor for a colloquy on the Startup Act 2.0 earlier this week. Click here to watch.
USA Today reported Sunday that young Americas are more inclined to launch their own start-up businesses, despite the current tough economic climate. Several factors play into Millennials’ tendency to be more open to entrepreneurship in the early stages of their careers.
"Generation Y is the most entrepreneurial generation ever," said Jeff Cornwall, director of the Center for Entrepreneurship at Belmont University in Nashville. "Parents raised their children to be independent," Cornwall said.
When Cornwall wanted to start an entrepreneurial program at Belmont in the 1980s, "There were only about a dozen universities with this type of program — now, there are over 2,000," he said. Belmont University touts a success rate of having 36.8% of entrepreneur majors and minors operating their own businesses post-graduation.
According to a 2012 report by the Kauffman Foundation, the largest entrepreneurial foundation in the U.S., 29.4% of entrepreneurs were 20 to 34 years old, and roughly 160,000 start-ups a month were led by Millennials in 2011.
Senator Chris Coons has been an advocate for helping startup businesses expand and create jobs. In November, Chris introduced the AGREE Act with Republican Senator Marco Rubio, which stems from areas of common agreement between the President’s jobs plan, recommendations from the President’s Council on Jobs and Competitiveness, and plans put forward by both parties in Congress. On Tuesday, the AGREE Act expanded with the introduction of the Startup Act 2.0, which takes elements from both the AGREE Act and Senators Warner and Moran’s Startup Act.
Senator Coons is teaming up with Senators Marco Rubio (R-Fla.), Jerry Moran (R-Ka.), and Mark Warner (D-Va.) to introduce the Startup Act 2.0 — a bill that builds upon the bipartisan AGREE Act and the bipartisan Startup Act to help entrepreneurs create jobs in the U.S. Check out this infographic below for why Congress should pass the Startup Act 2.0. Click on the image to see it bigger.
From Roll Call: Senator Chris Coons, a member of the Senate Budget Committee and Congressional Manufacturing Caucus, authored an op-ed that appeared in Tuesday’s edition of Roll Call on the need for an R&D tax credit for innovative start-up businesses.
Over the past three decades, the research and development tax credit has helped tens of thousands of successful American companies create jobs by incentivizing investment in innovation. There is little doubt that it has strengthened our economy and deserves to be made permanent. But with America’s global manufacturing competitiveness at stake, it’s time Congress shows the same type of support for entrepreneurs and young companies.
Small and startup businesses are driving our nation’s economic recovery and creating jobs by taking risks to turn their ideas into marketable products. Over the past few decades, firms that were younger than five years old were responsible for the overwhelming majority of new jobs in this country.
There are plenty of federal programs designed to help traditional small businesses — retail stores, service providers, restaurants and others — grow from employing one person to employing 10 people, but how do we help the “gazelle” companies reach their potential and grow from employing five people to employing 50? Or 500? Or 5,000?
For these innovators to grow and create jobs, we have to support them in their critical early stages.
Senator Coons went to the Senate floor this afternoon to lay out an idea he's been working on to help entrepreneurs and the leaders of young businesses to grow their companies by investing in research and development.
The Research and Development Tax Credit has helped incentivize innovation at established businesses for 30 years, which is why Chris is such an ardent supporter of the credit and has twice introduced legislation to make it permanent. The problem is, young companies that aren't yet profitable can't benefit from the tax credit.
So how can the federal government help those businesses grow and create jobs?
Chris' idea would create a tradable version of the R&D Tax Credit. Innovative young companies looking to expand their research and development efforts would be eligible for this "innovation credit," which they would then be able to sell to a bigger, more established company. The bigger company gets the tax credit, while the young company gets a cash infusion.
It's win-win.
In his remarks Monday afternoon, Chris talked about two innovative Delaware companies that might be able to utilize such a tradable credit like this — Elcriton in New Castle and Evozym in Newark. You can watch the speech above or click here to read the full transcript.
The Senator is eager for feedback on the idea, and invited other legislators and business leaders to weigh-in and help shape the idea before he introduces it as legislation. You can share your own opinion on the idea by clicking here.
Senator Coons spent Friday morning at the coIN Loft in Wilmington, having breakfast with some of the area’s most dynamic and innovative entrepreneurs. The coIN Loft was started by Steve Roettger and Wes Garnett just over a year ago, and it occupies about 2,200 square feet in downtown Wilmington. Set up as a co-working environment, where tenants pay an affordable fee to use their space and facilities, the coIN Loft gives start up business owners the opportunity to take advantage of meeting space, offices and most importantly, each other's experience.
These innovative business leaders spoke with Chris about the importance of entrepreneurs to the economy and what can be done to strengthen the entrepreneurial environment in Delaware.
Chris discussed some of the legislative successes that came out of Congress last year and listened to feedback about the importance of continuing to encourage entrepreneurship throughout Delaware and the United States. Everyone at the table shared stories about opportunities they found in the private sector and how they dealt with the challenges that come with taking risks and pursuing one’s passion.
In addition to the founders Wes and Steve, Chris was joined by about 12 other entrepreneurs including Tim McIntosh of Fairbridge Venture Partners, Lee Mikles of the Archer Group, Stefun Hawkins and Ron Berry of MyFanCountry, and Zach Phillips of the Spoke Project. The conversation ranged from how to protect intellectual property to the group's interest in Steve Case's Startup America initiative.
Chris came away from the breakfast energized by the passion and excitement of Delaware’s young entrepreneurs. He was particularly impressed by stories of how working in an open environment like the coIN Loft helped start ups become more productive and successful. Chris encouraged the participants to continue building the diverse community of entrepreneurs in Delaware and offered a number of specific suggestions on ways he might be able to help.
Senator Chris Coons (D-Del.) and Senator Marco Rubio (R-Fla.) hosted at a press conference on Tuesday to unveil their bipartisan bill to support job creation — the American Growth, Recovery, Empowerment and Entrepreneurship (AGREE) Act. The AGREE Act stems from areas of common agreement between the President’s jobs plan, recommendations from the President’s Council on Jobs and Competitiveness, and plans put forward by both parties in Congress.
If enacted, the AGREE Act would do the following:
Extend 100 percent bonus depreciation through 2012 for the full cost of qualified investments such as equipment and property.
Extend Section 179 expensing levels for small businesses through 2012.
Eliminate taxes on certain small business stock through 2012.
Extend the Research & Development tax credit until 2013, increase the Alternative Simplified Credit (ASC) from 14 percent to 20 percent, and makes the ASC permanent.
Provide veterans with a tax credit equal to 25% of the fee associated with starting a franchise up to $100,000.
Provide a five-year exemption from Section 404(b) of Sarbanes-Oxley for the first five years of a company going public, or for those below $250 million in total gross revenue (whichever comes first).
Eliminate the per-country numerical limitation for employment-based immigrant visas and adjusts the limitations on family based visa petitions from 7% per country to 15%.
Protect intellectual property by clarifying the Trade Secrets Act, and making it explicitly clear that it is not a crime for federal officials, in the performance of their duties, to share information about suspected infringing products with the right holder of a trademarked good.
