Local Tech Wire

RESEARCH TRIANGLE PARK, N.C. – The change in tax policy toward venture capital continues to ignite debate in Washington, but the is seeing movement.

“Unlike the House-passed version of the bill which would change the taxation of carried interest income to 75 percent ordinary income and 25 percent capital gains, the current Senate version proposes a 50 percent ordinary income and 50 percent capital gains split beginning in 2011 (as a transition rate) moving to a 65 percent ordinary income and 35 percent capital gains split beginning in 2013 and beyond,” writes Mark Heesen, president of the NVCA.

“That rate would be reduced to 55 percent ordinary income and 45 percent capital gains rate for investments held longer than 7 years. “

Heesen adds: “The Senate is obviously not satisfied with the House bill as it relates to carried interest and has made it clear that it favors a different blend which takes into account long term investment. We believe the Senate bill is moving in the right direction. “