# 119-hr-1778: American Innovation Act of 2025

119-hr-1778, American Innovation Act of 2025, is a 119th Congress bill sponsored by Rep. Buchanan, Vern [R-FL-16] (R-FL); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-hr-1778
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-1778
- Congress: 119
- Title: American Innovation Act of 2025
- Status: introduced
- Introduced: 2025-03-03
- Sponsor: Rep. Buchanan, Vern [R-FL-16] (R-FL)
- Cosponsors: 18
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**This bill would reshape how new businesses treat start-up and organizational costs by letting founders take a larger immediate deduction and by protecting start-up losses and credits during ownership changes.** It creates an easier election to deduct early costs and clarifies how those costs, losses, and credits work across entity types and ownership transitions. - Startups and founders: A taxpayer could elect to deduct up to $20,000 of start-up and organizational expenditures in the year the business begins, phased out when total start-up costs exceed $120,000. Any remaining costs would be capitalized and amortized over 180 months, and the $20,000/$120,000 amounts are inflation adjusted after 2026. - Pass-throughs and single-owner entities: Partnerships and S corporations must make the deduction election at the entity level. Single-owner disregarded entities are treated like corporations for applying the rule. - Ownership changes, losses, and credits: The bill adds special rules to preserve and allocate start-up net operating losses and unused general business credits during ownership changes using ratio-based calculations tied to a start-up period of roughly the first 3 years. Transition rules exclude start-ups that begin on or before January 31, 2026.

## Cosponsors (18)

- Rep. Kelly, Mike [R-PA-16] (R-PA), 2025-03-03T00:00:00.000Z
- Rep. Smith, Adrian [R-NE-3] (R-NE), 2025-03-03T00:00:00.000Z
- Rep. Estes, Ron [R-KS-4] (R-KS), 2025-03-03T00:00:00.000Z
- Rep. Miller, Carol D. [R-WV-1] (R-WV), 2025-03-03T00:00:00.000Z
- Rep. Miller, Max L. [R-OH-7] (R-OH), 2025-03-03T00:00:00.000Z
- Rep. Mackenzie, Ryan [R-PA-7] (R-PA), 2025-03-18T00:00:00.000Z
- Rep. Kustoff, David [R-TN-8] (R-TN), 2026-02-10T00:00:00.000Z
- Rep. Moore, Blake D. [R-UT-1] (R-UT), 2026-02-20T00:00:00.000Z
- Rep. Fleischmann, Charles J. "Chuck" [R-TN-3] (R-TN), 2026-02-23T00:00:00.000Z
- Rep. Carter, Earl L. "Buddy" [R-GA-1] (R-GA), 2026-02-23T00:00:00.000Z
- Rep. Tenney, Claudia [R-NY-24] (R-NY), 2026-02-23T00:00:00.000Z
- Rep. Bacon, Don [R-NE-2] (R-NE), 2026-02-23T00:00:00.000Z
- Rep. Carey, Mike [R-OH-15] (R-OH), 2026-03-03T00:00:00.000Z
- Rep. Lawler, Michael [R-NY-17] (R-NY), 2026-03-03T00:00:00.000Z
- Rep. Kiggans, Jennifer A. [R-VA-2] (R-VA), 2026-03-03T00:00:00.000Z
- Rep. Webster, Daniel [R-FL-11] (R-FL), 2026-03-03T00:00:00.000Z
- Rep. Moran, Nathaniel [R-TX-1] (R-TX), 2026-03-16T00:00:00.000Z
- Rep. Yakym, Rudy [R-IN-2] (R-IN), 2026-03-24T00:00:00.000Z

## Provisions PRIA read

- Bigger first-year startup cost deduction: benefit, high. If enacted, new businesses could elect to deduct up to $20,000 of startup and organization costs in the first year. That $20,000 would shrink dollar-for-dollar when total costs exceed $120,000. You would spread any remaining costs evenly over 180 months, starting when the business begins. Partnersh…
- No tax write-off for syndication fees: cost, high. If enacted, partnerships and their partners could not deduct fees paid to market or sell partnership interests (syndication or promotion fees). This would raise taxable income for affected partnerships and partners. The change would apply to tax years beginning after Dec 31, 2025.
- Tighter limits on startup losses after sales: cost, high. If enacted, companies that change owners would face tighter limits on using startup‑period tax losses and credits. After an ownership change, net operating losses from startup years would be reduced by the share tied to the startup trade or business. Unused general business credits from startup yea…

## Related bills

- 119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage Act
- 119-hr-703: Main Street Tax Certainty Act
- 119-hr-425: Repealing Big Brother Overreach Act
- 119-hr-1262: Mikaela Naylon Give Kids a Chance Act
- 119-hr-909: Crime Victims Fund Stabilization Act of 2025
- 119-hr-1628: 761st Tank Battalion Congressional Gold Medal Act

## Sources
- [119-hr-1778 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/1778)

## Related
- [119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage A…](https://policyrisk.com/legislation/119-hr-842)
- [119-hr-703: Main Street Tax Certainty Act](https://policyrisk.com/legislation/119-hr-703)
- [119-hr-425: Repealing Big Brother Overreach Act](https://policyrisk.com/legislation/119-hr-425)
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [119-hr-909: Crime Victims Fund Stabilization Act of 2025](https://policyrisk.com/legislation/119-hr-909)
- [119-hr-1628: 761st Tank Battalion Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-1628)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-1778 (as of 2026-04-21).