S.4207

American Innovation Act of 2026 amends the Internal Revenue Code to promote new business innovation.

The American Innovation Act of 2026 amends the Internal Revenue Code to promote new business innovation. It simplifies and expands the deduction for start-up and organizational expenditures, allowing a deduction for the taxable year in which an active trade or business begins. The Act also preserves start-up net operating losses and tax credits after an ownership change. These amendments apply to expenditures paid or incurred in connection with active trades or businesses which begin in taxable years after December 31, 2025.