American Innovation Act of 2025

The American Innovation Act of 2025 modifies tax rules to support new businesses by changing how start-up and organizational costs can be deducted. It allows businesses to deduct up to $20,000 (adjusted for inflation) of initial costs in the first year, with remaining costs amortized over 15 years (180 months). The bill also preserves net operating losses and tax credits for new businesses after ownership changes, helping startups maintain tax benefits when sold or restructured. This primarily affects new businesses, startups, and small companies forming new ventures beginning after December 31, 2025.