Title: Support Our Start-Ups Act
Policy area: Taxation

Summary:
Support Our Start-Ups Act
This bill amends the Internal Revenue Code to extend the tax deduction for new business expenditures to organizational expenditures, generally defined as expenditures incident to the creation of a corporation or a partnership.
The bill also increases the maximum deduction amount for start-up and organizational expenditures from $5,000 to $20,000 and increases from $50,000 to $120,000 the threshold amount after which the maximum deduction amount for such expenditures is reduced.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1984 Introduced in Senate (IS)]

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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.

    Be it enacted by the Senate and House of Representatives 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 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 expenditure which--
                    ``(A) is incident to the creation of a corporation 
                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 amortizable 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 subsection (a), is amended to read as 
follows:
                    ``(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 expenditures ratably over 
                the 15-year period beginning 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 amended--
                    (A) by inserting ``(or, in the case of a 
                partnership, the partnership elects)'' after ``If a 
                taxpayer elects''; and
                    (B) by inserting ``(or the partnership, as the case 
                may be)'' after ``the taxpayer'' in subparagraph (A).
            (2) Section 195(b)(2) of such Code is amended--
                    (A) by striking ``amortization period.--In any 
                case'' and inserting the following: ``amortization 
                period.--
                    ``(A) In general.--In any case''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(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)''.
            (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 paragraph (4) as paragraph (3).
            (K) Section 1375(b)(1)(B)(i) of such Code is amended by 
        striking ``(other than the deduction allowed by section 248, 
        relating to organization expenditures)''.
            (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.
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