The undersigned organizations write to encourage policymakers to remove provisions in the Build Back Better Act that would curtail the effectiveness of Qualified Small Business Stock (QSBS) in incentivizing investment in innovative small businesses and startups. Small businesses and startups are at the heart of the American economy, driving the majority of all new job creation, innovation, and opportunity for their employees.1 As the United States seeks to build a broad-based economic recovery that expands opportunity to more people, our country’s tax regime should advance that ambition. The Qualified Small Business Stock rule has proven effective in promoting investment in startups and early-stage growth companies in regions and communities across the country. QSBS limits capital gains taxes for founders, employees, and investors in qualified small businesses. To qualify, the enterprise must, among other things, have less than $50 million in assets, 80% of which are used in the active conduct of a qualified business. And the stock owners must hold the stock for at least five years.

The Biotechnology Innovation Organization (BIO) is pleased to submit a statement for the record to the United States House of Representatives Committee on Agriculture joint hybrid subcommittee hearing, Agricultural Biotechnology: 21st Century Advancements and Applications. BIO applauds the Committee for examining the role of agricultural biotechnology in the 21st Century. To meet the challenges of a changing climate and sustainably increasing production to feed a growing world, it is crucial to lead with science and U.S. innovation. We must incentivize the adoption of innovative, sustainable technologies and practices; and streamline and expedite regulatory pathways for breakthrough technology solutions.

On behalf of our nation’s food and agricultural stakeholder community, we write to extend our appreciation for holding today’s hearing on “Agricultural Biotechnology: 21st Century Advancements and Applications.” Biotechnology is an increasingly vital technology for the future productivity and sustainability of agriculture. As we work to posture these tools for greater future use, we welcome the Committee exploring important facets of the technology, including its underlying science, applications, and relevant policy matters. Moreover, we stand ready to assist the Committee in advancing policy improvements that will help these promising innovations address the challenges facing agriculture and our society.