U.S. Sen. Marsha Blackburn (R-TN) has introduced legislation that would spur new business innovation by expanding tax incentives.
The American Innovation Act would offset startup costs and remove barriers for creating new businesses, she said.
“Entrepreneurship is the beating heart of the American Dream, and we must remove barriers that prevent hardworking Americans from launching their own businesses,” Blackburn. “The American Innovation Act would help Tennesseans invest in their own communities by kickstarting small businesses, supporting families, and growing our local economies.”
The legislation would quadruple the amount of startup costs small business owners can deduct in their first year, up to $20,000; increase the phase-out threshold for deductions from $50,000 to $120,000 and allow partnerships and S corporations to take advantage of the deduction.
This legislation is supported by the Small Business & Entrepreneurship Council.
“These reforms put more resources into the hands of entrepreneurs during their critical launch year, empowering founders to reinvest in their companies. By lowering the tax burden on risk-taking and innovation, the ‘American Innovation Act’ supports job creation, fuels investment, and strengthens the broader economy. SBE Council applauds Senator Blackburn for her leadership in introducing this important legislation, and we urge every member of the U.S. Senate to strengthen entrepreneurship by supporting this important bill,” Karen Kerrigan, president & CEO of the Small Business & Entrepreneurship Council, said.
Companion legislation was introduced in the House by U.S. Rep. Vern Buchanan (R-FL).