American Innovation Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 1778 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 1778 To amend the Internal Revenue Code of 1986 to promote new business innovation, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES March 3, 2025 Mr. Buchanan (for himself, Mr. Kelly of Pennsylvania, Mr. Smith of Nebraska, Mr. Estes, Mrs. Miller of West Virginia, and Mr. Miller of Ohio) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to promote new business innovation, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``American Innovation Act of 2025''. SEC. 2. SIMPLIFICATION AND EXPANSION OF DEDUCTION FOR START-UP AND ORGANIZATIONAL EXPENDITURES. (a) In General.--Section 195 of the Internal Revenue Code of 1986 is amended by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by striking all that precedes subsection (d) (as so redesignated) and inserting the following: ``SEC. 195. START-UP AND ORGANIZATIONAL EXPENDITURES. ``(a) Capitalization of Expenditures.--Except as otherwise provided in this section, no deduction shall be allowed for start-up or organizational expenditures. ``(b) Election To Deduct.-- ``(1) In general.--If a taxpayer elects the application of this subsection with respect to any active trade or business-- ``(A) the taxpayer shall be allowed a deduction for the taxable year in which such active trade or business begins in an amount equal to the lesser of-- ``(i) the aggregate amount of start-up and organizational expenditures paid or incurred in connection with such active trade or busin