The Biotechnology Industry Organization and 14 groups representing research-intensive industries have formed a new association to fight for tax reforms favorable to their investors.

The new Washington D.C.-based Coalition of Small Business Innovators ties together advocates for medical device makers, cutting-edge battery developers, and even commercial space flight pioneers. Together, they say they’re seeking to stimulate “sustained, private investment in small, highly innovative companies focused on the development of new technologies.”

Tax code provisions are of vital importance to growing biotech and medical device companies, which spend many years accumulating losses before eventually—if ever—producing revenue. “These companies often have no product revenue to fund their search for breakthrough therapies, so the tax code is of vital importance in order to spur investment in lifesaving R&D,” says BIO.

In particular, the coalition would like to see a relaxation of passive activity loss rules for small research-intensive companies; greater allowance for small companies to retain net operating losses generated by R&D expenditures; and more favorable capital gains treatment for small research-intensive companies through a change in the gross assets test.

In addition to lowering the corporate tax rate and the enactment of a competitive territorial tax system, the group would also like Congress, through tax reform, to incentivize investment in innovative small companies like emerging biotechs and support the development of next generation technologies.

“Pre-revenue small businesses are a leading force for innovation in America, and innovation is key for our economic health and prosperity,” says Stephen Ubl, president and CEO of the Advanced Medical Technology Association. “The corporate tax system should be reformed to promote innovation through R&D and advanced manufacturing incentives.”