Northern Virginia Technology Council Leaders Join Governor McDonnell and Legislators at Jobs and Opportunity Bill Signing CeremonyCapital Gains Tax Exclusion, Early-Stage Funding to Establish Virginia as Leader in Next Generation Tech Company Formation
HERNDON, Va. - March 30, 2010 - At a bill signing ceremony co-hosted by the Northern Virginia Technology Council (NVTC) and the Center for Innovative Technology (CIT) today, Governor Bob McDonnell signed several major components of his "Jobs and Opportunity" legislative agenda to encourage job creation and economic development in Virginia. NVTC President & CEO Bobbie Kilberg provided introductory remarks during the ceremony, which was held at the Center for Innovative Technology in Herndon. The Governor's Senior Economic Advisor Bob Sledd and a bipartisan group of legislators from Northern Virginia and throughout the Commonwealth were present.
Three of the initiatives highlighted by the Governor today were top legislative priorities for NVTC. First, the Governor signed legislation establishing a 100 percent capital gains tax exclusion for founders and investors in qualifying technology, energy and biotechnology startups in Virginia for investments made over the next three years. This new law will position Virginia as a leader in next generation tech company formation and innovation, as well as a top destination for entrepreneurs, early-stage investors, researchers and innovators.
The Governor also commented on several additional economic development provisions in the recently-passed budget. Particularly noteworthy was Governor McDonnell's support of an additional $1.5 million in funding over the next two years for the CIT GAP fund, which will underwrite critical and immediate first financing for 20 new early-stage technology companies by leveraging private sector capital at a rate of 11 times the Commonwealth's investment. "Over the past several years, NVTC has actively promoted a comprehensive 'Grow Your Own' strategy for new company formation," said Kilberg. "Governor McDonnell has taken an important step in promoting investment in new company formation and job creation in Virginia, giving the Commonwealth a competitive advantage as a potential location for entrepreneurs deciding where to locate their startups."
Also during today's bill signing ceremony, Governor McDonnell cited a budget initiative that will improve incentives for companies to expand, relocate and move corporate headquarters to Virginia by doubling the Governor's Economic Development Fund with an additional $12 million in FY 2011. This additional funding, for which NVTC had been a strong advocate, will bring much-needed growth and tax revenue to Virginia, enhancing its ability to attract mature companies to the Commonwealth.
"Small entrepreneurial companies, with their ability to creatively address problems and quickly adapt to changes in the marketplace, are often the drivers of technology innovation," continued Kilberg. "NVTC welcomes these new laws and Governor McDonnell's efforts to create jobs and promote economic development by attracting technology companies to Virginia and by expanding companies already located here."