II 

115TH CONGRESS 

1ST SESSION S. 1984 

To amend the Internal Revenue Code of 1986 to increase the limitations 

for deductible new business expenditures and to consolidate provisions 

for start-up and organizational expenditures. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 19, 2017 

Ms. BALDWIN (for herself, Mr. PETERS, and Ms. KLOBUCHAR) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to increase 

the limitations for deductible new business expenditures 

and to consolidate provisions for start-up and organizational expenditures. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Support Our Start5 Ups Act’’. 

6 SEC. 2. NEW BUSINESS EXPENDITURES. 

7 (a) IN GENERAL.—Subsections (a) and (b) of section 

8 195 of the Internal Revenue Code of 1986 are both 


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1 amended by inserting ‘‘and organizational’’ after ‘‘start2 up’’ each place it appears. 

3 (b) ORGANIZATIONAL EXPENDITURES.—Subsection 

4 (c) of section 195 of such Code is amended by adding at 

5 the end the following new paragraph: 

6 ‘‘(3) ORGANIZATIONAL EXPENDITURES.—The 

7 term ‘organizational expenditures’ means any ex8 penditure which— 

9 ‘‘(A) is incident to the creation of a cor10 poration or a partnership, 

11 ‘‘(B) is chargeable to capital account, and 

12 ‘‘(C) is of a character which, if expended 

13 incident to the creation of a corporation or a 

14 partnership having a limited life, would be am15 ortizable over such life.’’. 

16 (c) DOLLAR AMOUNTS.—Clause (ii) of section 

17 195(b)(1)(A) of such Code is amended— 

18 (1) by striking ‘‘$5,000’’ and inserting 

19 ‘‘$20,000’’; and 

20 (2) by striking ‘‘$50,000’’ and inserting 

21 ‘‘$120,000’’. 

22 (d) AMORTIZATION TREATMENT.—Subparagraph (B) 

23 of section 195(b)(1) of such Code, as amended by sub24 section (a), is amended to read as follows: 


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1 ‘‘(B) the remainder of such start-up and 

2 organizational expenditures shall be charged to 

3 capital account and allowed as an amortization 

4 deduction determined by amortizing such ex5 penditures ratably over the 15-year period be6 ginning with the midpoint of the taxable year in 

7 which the active trade or business begins.’’. 

8 (e) CONFORMING AMENDMENTS.— 

9 (1) Section 195(b)(1) of such Code is amend10 ed— 

11 (A) by inserting ‘‘(or, in the case of a part12 nership, the partnership elects)’’ after ‘‘If a tax13 payer elects’’; and 

14 (B) by inserting ‘‘(or the partnership, as 

15 the case may be)’’ after ‘‘the taxpayer’’ in sub16 paragraph (A). 

17 (2) Section 195(b)(2) of such Code is amend18 ed— 

19 (A) by striking ‘‘AMORTIZATION PERIOD.— 

20 In any case’’ and inserting the following: ‘‘AM21 ORTIZATION PERIOD.— 

22 ‘‘(A) IN GENERAL.—In any case’’; and 

23 (B) by adding at the end the following new 

24 subparagraph: 


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1 ‘‘(B) SPECIAL PARTNERSHIP RULE.—In 

2 the case of a partnership, subparagraph (A) 

3 shall be applied at the partnership level.’’. 

4 (3) Section 195(b) of such Code is amended by 

5 striking paragraph (3). 

6 (4)(A) Part VIII of subchapter B of chapter 1 

7 of such Code is amended by striking section 248 

8 (and by striking the item relating to such section in 

9 the table of sections for such part). 

10 (B) Section 56(g)(4)(D)(ii) of such Code is 

11 amended by striking ‘‘Sections 173 and 248’’ and 

12 inserting ‘‘Section 173’’. 

13 (C) Section 170(b)(2)(C)(ii) of such Code is 

14 amended by striking ‘‘(except section 248)’’. 

15 (D) Section 312(n)(3) of such Code is amended 

16 by striking ‘‘Sections 173 and 248’’ and inserting 

17 ‘‘Section 173’’. 

18 (E) Section 535(b)(3) of such Code is amended 

19 by striking ‘‘(except section 248)’’. 

20 (F) Section 545(b)(3) of such Code is amended 

21 by striking ‘‘(except section 248)’’. 

22 (G) Section 834(c)(7) of such Code is amended 

23 by striking ‘‘(except section 248)’’. 

24 (H) Section 852(b)(2)(C) of such Code is 

25 amended by striking ‘‘(except section 248)’’. 


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1 (I) Section 857(b)(2)(A) of such Code is 

2 amended by striking ‘‘(except section 248)’’. 

3 (J) Section 1363(b) of such Code is amended 

4 by inserting ‘‘and’’ at the end of paragraph (2), by 

5 striking paragraph (3), and by redesignating para6 graph (4) as paragraph (3). 

7 (K) Section 1375(b)(1)(B)(i) of such Code is 

8 amended by striking ‘‘(other than the deduction al9 lowed by section 248, relating to organization ex10 penditures)’’. 

11 (5) Part I of subchapter K of chapter 1 of such 

12 Code is amended by striking section 709 (and by 

13 striking the item relating to such section in the table 

14 of sections for such part). 

15 (6) The heading of section 195 of such Code 

16 (and the item relating to such section in the table 

17 of sections for part VI of subchapter B of chapter 

18 1 of such Code) are each amended by inserting ‘‘and 

19 organizational’’ after ‘‘Start-up’’. 

20 (f) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to expenses paid or incurred in 

22 taxable years beginning after December 31, 2017. 

Æ 


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