To amend the Internal Revenue Code of 1986 to encourage investments in startup companies by providing special treatment for losses on such investments.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to provide for ordinary-loss treatment for losses on investments in a qualified startup company. Describes such company as one which: (1) manufactures tangible personal property in the United States; (2) does not involve a business acquired from another person; and (3) has not been in existence for more than one taxable year at the time it issued stock.…