American Innovation Act of 2026

This bill, the American Innovation Act of 2026, modifies federal tax rules for businesses starting new operations and those undergoing ownership changes. It allows businesses to deduct up to $20,000 of start-up and organizational costs in their first year, with the remaining costs amortized over 15 years, and adjusts these dollar amounts annually for inflation. Additionally, the bill preserves net operating losses and certain tax credits generated during a business's early years when the business is later sold to a new owner, preventing those tax benefits from being lost due to ownership transfers. These changes apply to business activities beginning after December 31, 2025, and are designed to provide tax relief to entrepreneurs and maintain the value of tax benefits for businesses that change hands.