Near the top of that list was the idea of a crowdfunding tax credit.

Well, with the power shift in Washington, CfPA has seized the momentum and crystallized that idea into a formal policy proposal that it calls the “Targeting Resources to Unleash Market Prosperity (TRUMP) Jobs Act”.

Ha ha, very clever guys. Appeal to the man’s ego.

Shameless, but hopefully effective.

Here’s how the TRUMP Jobs Act would work.

The tax code would be amended to give a 50% tax credit for any investments made by people under Reg CF, with a maximum of $1,000 per year, or $2,000 for couples filing jointly.

We have confirmed with CfPA that that would mean a $1,000 tax credit for an individual investing $2,000, or a $2,000 credit for a couple investing $4k.

Now remember, tax CREDITS are way better than a tax DEDUCTION.

Because while tax deductions are subtracted from your top line income before calculating what your tax bill will be, tax CREDITS are subtracted from your bottom line tax BILL.

Moreover, tax CREDITS can cause or contribute to a tax REFUND, as opposed to just reducing your bill.

So admittedly, while this is all still theoretical, if the CfPA and friends (they’ve formed a broader group to push this effort called the Coalition for Crowdfunding American Jobs and Prosperity… my LLC Iliad Funds Solutions joined!) can see this thing through, it could make the benefits of crowdfunding that much stronger as a result.

It’s hard to game out the odds.

But we’ll try. A little bit.

We know that the Trump administration is not a big fan of taxes. Particularly income taxes.

So far, that has only translated to a proposal to reduce the corporate income tax rate from 21% to 15%. But it’s entirely possible that the president’s feelings about taxes could surface in other areas.

Additionally, with Republicans now controlling both houses of Congress and the presidency, you’d typically expect to see more pro-business policies enacted.

And the TRUMP Jobs Act is pretty darned pro business, pro economic growth, and pro job creation as well.

Since Reg CF went into effect in 2016, over 8,500 companies have raised over $2.2 billion from 2 million investors. And CfPA estimates that, from that investment, companies using crowdfunding have generated $7.5 billion in economic activity—a 3.4x multiple—and supported over 400,000 jobs in the process.¹

Because of that prior track record, CfPA president Jenny Kassan believes it could “create jobs, fuel economic growth, and empower more Americans to share in the success of our free enterprise system.”

So, while any policy proposal is a longshot, this one should at least stand a decent chance, assuming CfPA can get anyone to pay attention.

Let’s hope that President Trump sees how this is a win-win-win situation for small businesses, the economy, and regular investors across America.

Take a look at CfPA’s press release here (they’ve put together some additional info here),

and by all means reach out to your Congressperson to let them know that you support the move!