I 
115TH CONGRESS 
1ST SESSION 
H. R. 111 
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 HOUSE OF REPRESENTATIVES 
JANUARY 3, 2017 
Mr. BUCHANAN (for himself, Mr. RENACCI, and Mr. DIAZ-BALART) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means 
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 organiza-
tional expenditures. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Support Our Start- 
Ups Act’’. 
SEC. 2. NEW BUSINESS EXPENDITURES. 
(a) IN GENERAL.—Subsections (a) and (b) of section 
195 of the Internal Revenue Code of 1986 are both 
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amended by inserting ‘‘and organizational’’ after ‘‘start- 
up’’ each place it appears. 
(b) ORGANIZATIONAL EXPENDITURES.—Subsection 
(c) of section 195 of such Code is amended by adding at 
the end the following new paragraph: 
‘‘(3) ORGANIZATIONAL
EXPENDITURES.—The 
term ‘organizational expenditures’ means any ex-
penditure which— 
‘‘(A) is incident to the creation of a cor-
poration or a partnership, 
‘‘(B) is chargeable to capital account, and 
‘‘(C) is of a character which, if expended 
incident to the creation of a corporation or a 
partnership having a limited life, would be am-
ortizable over such life.’’. 
(c) DOLLAR
AMOUNTS.—Clause (ii) of section 
195(b)(1)(A) of such Code is amended— 
(1) 
by 
striking 
‘‘$5,000’’ 
and 
inserting 
‘‘$20,000’’, and 
(2) by striking ‘‘$50,000’’ and inserting 
‘‘$120,000’’. 
(d) AMORTIZATION TREATMENT.—Subparagraph (B) 
of section 195(b)(1) of such Code, as amended by sub-
section (a), is amended to read as follows: 
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‘‘(B) the remainder of such start-up and 
organizational expenditures shall be charged to 
capital account and allowed as an amortization 
deduction determined by amortizing such ex-
penditures ratably over the 15-year period be-
ginning with the midpoint of the taxable year in 
which the active trade or business begins.’’. 
(e) CONFORMING AMENDMENTS.— 
(1) Section 195(b)(1) of such Code is amend-
ed— 
(A) by inserting ‘‘(or, in the case of a part-
nership, the partnership elects)’’ after ‘‘If a tax-
payer elects’’, and 
(B) by inserting ‘‘(or the partnership, as 
the case may be)’’ after ‘‘the taxpayer’’ in sub-
paragraph (A). 
(2) Section 195(b)(2) of such Code is amend-
ed— 
(A) by striking ‘‘AMORTIZATION PERIOD.— 
In any case’’ and inserting the following: ‘‘AM-
ORTIZATION PERIOD.— 
‘‘(A) IN GENERAL.—In any case’’, and 
(B) by adding at the end the following new 
subparagraph: 
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‘‘(B) SPECIAL
PARTNERSHIP
RULE.—In 
the case of a partnership, subparagraph (A) 
shall be applied at the partnership level.’’. 
(3) Section 195(b) of such Code is amended by 
striking paragraph (3). 
(4)(A) Part VIII of subchapter B of chapter 1 
of such Code is amended by striking section 248 
(and by striking the item relating to such section in 
the table of sections for such part). 
(B) Section 56(g)(4)(D)(ii) of such Code is 
amended by striking ‘‘Sections 173 and 248’’ and 
inserting ‘‘Section 173’’. 
(C) Section 170(b)(2)(C)(ii) of such Code is 
amended by striking ‘‘(except section 248)’’. 
(D) Section 312(n)(3) of such Code is amended 
by striking ‘‘Sections 173 and 248’’ and inserting 
‘‘Section 173’’. 
(E) Section 535(b)(3) of such Code is amended 
by striking ‘‘(except section 248)’’. 
(F) Section 545(b)(3) of such Code is amended 
by striking ‘‘(except section 248)’’. 
(G) Section 834(c)(7) of such Code is amended 
by striking ‘‘(except section 248)’’. 
(H) Section 852(b)(2)(C) of such Code is 
amended by striking ‘‘(except section 248)’’. 
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(I) Section 857(b)(2)(A) of such Code is 
amended by striking ‘‘(except section 248)’’. 
(J) Section 1363(b) of such Code is amended 
by inserting ‘‘and’’ at the end of paragraph (2), by 
striking paragraph (3), and by redesignating para-
graph (4) as paragraph (3). 
(K) Section 1375(b)(1)(B)(i) of such Code is 
amended by striking ‘‘(other than the deduction al-
lowed by section 248, relating to organization ex-
penditures)’’. 
(5) Part I of subchapter K of chapter 1 of such 
Code is amended by striking section 709 (and by 
striking the item relating to such section in the table 
of sections for such part). 
(6) The heading of section 195 of such Code 
(and the item relating to such section in the table 
of sections for part VI of subchapter B of chapter 
1 of such Code) are each amended by inserting ‘‘and 
organizational’’ after ‘‘Start-up’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid or incurred in 
taxable years beginning after December 31, 2017. 
Æ 
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