H.R.1778

American Innovation Act of 2025 simplifies and expands tax deductions for start-up and organizational expenditures.

The American Innovation Act of 2025 amends the Internal Revenue Code to simplify and expand the tax deduction for start-up and organizational expenditures. It allows taxpayers to deduct the lesser of the total start-up and organizational expenditures or $20,000 in the year the business begins. The remaining expenditures can be amortized over 180 months. The bill also introduces an inflation adjustment for taxable years beginning after December 31, 2026.