NVCA Today

Thank you to all the venture capitalists and venture-backed CEOs, founders and entrepreneurs that responded to our recent call to actions urging lawmakers to recognize the critical role that venture capital has played in the US economy and retain a long term capital gains tax incentive for venture capital carried interest.

The first call to action, launched at the NVCA Annual Meeting on May 5th, garnered more than 1700 signatures from venture capitalists, entrepreneurs and other venture ecosystem stakeholders. The second call to action, designed to show Congress the support for our position from the entrepreneurial community, garnered more than 1400 signatures – all collected in a short 24 hours.

As stated in recent member alerts, the discussions around carried interest remain fluid.

The House of Representatives barely passed HR 4213 on May 28^th, which contains a provision to change the taxation of carried interest from capital gains to 75 percent ordinary income and 25 percent capital gains. Under the provision, the change would be in full effect in 2013 but will begin a graduated change in 2011. The Senate will consider this legislation when it returns form its Memorial Day recess on June 7^th. We believe that the Senate is poised to have a thoughtful, policy-driven process around this bill and will consider other options to the 75/25 provision that is included in HR 4213.

NVCA is working around the clock to preserve the current long-term capital gains tax incentive. We will update the membership regularly through additional member alerts and updates on NVCAccess and the NVCA website.