Manatee Review

Congressman Vern Buchanan and Congressman Mike Kelly have introduced the American Innovation Act, a legislative proposal aimed at enhancing tax incentives to promote innovation among small businesses. The bill seeks to alleviate initial business creation barriers by increasing the tax deduction for start-up costs from $5,000 to $20,000. It also raises the threshold for deductible expenses from $50,000 to $120,000, covering costs such as advertising and employee salaries.

Buchanan stated that small businesses are still recovering from economic challenges and emphasized the importance of facilitating their ability to create jobs and invest in communities. "Helping entrepreneurs take their unique ideas from concept to reality will jumpstart our economy," he said.

Kelly highlighted the potential of the act to foster growth in small businesses by supporting research and development investments. "This pro-growth tax policy will kickstart our small businesses," he noted.

The bill is cosponsored by several members of the House Ways and Means Committee. Buchanan has been active in promoting American innovation through various initiatives, including previous legislation focused on medical therapies and supply chain strengthening.

The American Innovation Act previously passed the U.S. House with bipartisan support in 2018. According to Buchanan's office, it aims to reduce the failure rate of start-ups within their first five years by decreasing their tax burden.