Rep. Chris Van Hollen (D-Md.) introduced this month a bill aimed at accelerating investment in innovative small businesses.

The Innovative Technologies Investment Incentive Act of 2010 (H.R. 5767) would provide a 25 percent tax credit for qualified investments in eligible small firms. Eligibility would be restricted to firms that previously received a Small Business Innovation Research (SBIR) program grant and investments held for at least three years.

The bill also would establish a per company cap for the Innovative Technology Investment Credit at one half the value of the receiving company’s SBIR award and an initial program cap of $500 million.

The legislation is cosponsored by Reps. Betty McCollum (D-Minn.), C.A. Dutch Ruppersberger (D-Md.), Allyson Schwartz (D-Pa.), and Jared Polis (D-Colo.)

To view the text of the legislation, please click here.