Bill > S1613

This bill amends the Internal Revenue Code to make several changes to how new businesses can handle their startup and organizational expenses for tax purposes. Specifically, it consolidates startup and organizational expenditures under a single provision, increases the amount businesses can deduct for these expenses from $5,000 to $50,000, and raises the phase-out threshold from $50,000 to $150,000. The bill also modifies how net operating losses (NOLs) are calculated for new businesses, allowing them to apply 100% of startup and organizational losses and treat these losses separately from other business losses. Additionally, the bill eliminates a separate section of the tax code dealing with organizational expenditures and makes various conforming amendments to streamline the tax treatment of new business expenses. For partnerships and S corporations, these deduction and loss calculations will be made at the entity level. The changes will take effect for expenses paid or incurred in taxable years beginning after December 31, 2025, providing new businesses with more generous tax treatment and simplified accounting for their initial expenses.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1613/all-info