I 
111TH CONGRESS 
2D SESSION 
H. R. 5767 
To amend the Internal Revenue Code of 1986 to allow a credit for equity 
investments in high technology and biotechnology small business concerns 
developing innovative technologies that stimulate private sector job 
growth. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 15, 2010 
Mr. VAN HOLLEN (for himself, Mr. RUPPERSBERGER, Mr. POLIS of Colorado, 
Ms. MCCOLLUM, and Ms. SCHWARTZ) introduced the following bill; which 
was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
credit for equity investments in high technology and bio-
technology small business concerns developing innovative 
technologies that stimulate private sector job growth. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Innovative Tech-
nologies Investment Incentive Act of 2010’’. 
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SEC. 2. CREDIT FOR INVESTMENTS IN HIGH TECHNOLOGY 
AND BIOTECHNOLOGY BUSINESS CONCERNS 
DEVELOPING INNOVATIVE TECHNOLOGIES. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding after section 30D the fol-
lowing new section: 
‘‘SEC. 30E. INVESTMENTS IN HIGH TECHNOLOGY AND BIO-
TECHNOLOGY BUSINESS CONCERNS DEVEL-
OPING INNOVATIVE TECHNOLOGIES. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 25 percent of the 
qualified equity investments made by the taxpayer during 
the taxable year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) NATIONAL LIMITATION.— 
‘‘(A) IN GENERAL.—There is a national in-
novative technology investment credit limitation 
of $500,000,000. 
‘‘(B) ALLOCATION
OF
LIMITATION
AND 
ISSUANCE
OF
CERTIFICATE.—Under regula-
tions, the Administrator of the Small Business 
Administration shall make allocations of the na-
tional innovative technology investment credit 
limitation among qualified equity investments 
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and shall issue an innovative technology invest-
ment credit certificate for each such allocation. 
‘‘(C) PER BUSINESS INVESTMENT LIMITA-
TION.—The amount of the national innovative 
technology investment credit limitation allocated 
to a qualified technology small business concern 
shall not exceed 50 percent of the total amount 
awarded to such concern under the Small Busi-
ness Innovation Research (SBIR) program 
under section 9 of the Small Business Act. 
‘‘(D) CERTIFICATE REQUIRED FOR CREDIT 
ELIGIBILITY.—The amount allowed as a credit 
under subsection (a) with respect to any quali-
fied equity investment shall not exceed the 
amount of the national innovative technology 
investment credit limitation allocated to such 
investment and shown on the innovative tech-
nology investment credit certificate pursuant to 
subparagraph (E)(ii). 
‘‘(E) INNOVATIVE
TECHNOLOGY
INVEST-
MENT CREDIT CERTIFICATE.—For purposes of 
this subsection, an innovative technology invest-
ment credit certificate is a certificate which— 
‘‘(i) certifies the amount of the quali-
fied equity investment, 
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‘‘(ii) relates such investment to an 
award under the Small Business Innova-
tion Research (SBIR) program under sec-
tion 9 of the Small Business Act which 
qualifies for purposes of this section, and 
‘‘(iii) contains such other information 
as the Administrator, in consultation with 
the Secretary, determines to be necessary 
or appropriate to carry out this section. 
The amount of any award under the Small 
Business Innovation Research program, once 
related under subparagraph (B) with a qualified 
equity investment, may not thereafter be avail-
able for purposes of this section. 
‘‘(2) LIMITATION BASED ON PERCENTAGE OWN-
ERSHIP.—The amount of the credit under subsection 
(a) allowed to the taxpayer with respect to a quali-
fied equity investment in a qualified technology 
small business concern shall be zero if, after such in-
vestment, the taxpayer owns (within the meaning of 
section 318) 50 percent or more of— 
‘‘(A) in the case that such concern is a 
corporation, the outstanding stock of the cor-
poration (either by vote or value), and 
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‘‘(B) in the case that such concern is not 
a corporation, the capital and profits interests 
of such concern. 
‘‘(c) QUALIFIED EQUITY INVESTMENT.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified equity 
investment’ means any equity investment in a quali-
fied technology small business concern made during 
the investment period if such investment is acquired 
by the taxpayer at its original issue (directly or 
through an underwriter) solely in exchange for cash. 
‘‘(2) EQUITY INVESTMENT.—The term ‘equity 
investment’ means— 
‘‘(A) any stock (other than nonqualified 
preferred stock, as defined in section 351(g)(2)) 
in an entity which is a corporation, and 
‘‘(B) any capital or profits interest in an 
entity which is not a corporation. 
‘‘(3) QUALIFIED TECHNOLOGY SMALL BUSINESS 
CONCERN.—The term ‘qualified technology small 
business concern’ means, with respect to any taxable 
year, any small business concern (as defined in sec-
tion 3 of the Small Business Act) if such concern— 
‘‘(A) is engaged in a high technology or 
biotechnology trade or business, and 
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