U.S. Senator Chris Murphy has introduced a bill to help entrepreneurs attract capital for new startups. His proposed federal tax credit is based on the Connecticut law that has generated millions for Connecticut’s small businesses and startups.

The bill, the Angel Tax Credit Act, is intended to incentivize new investments in startup businesses and help create a funding pipeline to grow small businesses and create new jobs in the science, technology, and engineering fields.

The Angel Tax Credit Act would encourage investors in startup companies, commonly referred to as “angel investors”, to support startup businesses by allowing them to claim a tax credit equal to 25 percent of their aggregate qualifying equity investments of $25,000 or more to U.S.-based high-tech startups.