Issue Position: Tax

Issue Position

Simplifying the tax code: consolidating the three existing start-up and organizational cost provisions into a single code section so that businesses can benefit regardless of how they are organized (e.g., partnership, LLC, corporation).

Increasing the maximum deduction for start-up and organizational costs: quadruples the maximum deduction for start-up and organizational costs from $5,000 to $20,000, better reflecting the amount of initial investments needed to start a business.

Raising the threshold at which the deduction phases out: Under current law, the maximum allowable deduction for start-up and organizational costs is reduced, dollar-for-dollar, as costs exceed $50,000. The Support Our Start-Ups Act would increase threshold at which the deduction begins to phase out to $120,000.

Ensuring that companies can benefit from costs in excess of the maximum deduction: keeps intact a current law provision that allows companies to amortize start-up and organizational costs in excess of their allowed deduction over 15 years.

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