Shenango Valley News

U.S. Representatives Mike Kelly and Vern Buchanan have introduced the American Innovation Act, a legislative proposal designed to enhance tax incentives to promote American innovation. This initiative aims to lower initial barriers for business creation, ultimately benefiting entrepreneurs and supporting start-ups in their growth.

Rep. Kelly, Chair of the House Ways and Means Tax Subcommittee, emphasized the act's potential impact: "The American Innovation Act allows for investments in research and development to help small businesses grow and allow entrepreneurs to take that next step in their American Dream." He added that this policy would support job creation and economic growth.

Rep. Buchanan, Vice Chairman of the House Ways and Means Committee, highlighted the need for such measures due to economic challenges: "America’s small businesses are still recovering from four years of Biden’s overspending and runaway inflation." He noted that facilitating entrepreneurship would revitalize the economy by fostering job creation and innovation.

The proposed legislation seeks to increase deductions for start-up costs significantly. The deductible amount from federal income taxes would rise from $5,000 to $20,000. Additionally, it raises the threshold for other expenditures like advertising and salaries from $50,000 to $120,000.

The bill is co-sponsored by several members of the House Ways and Means Committee: Reps. Ron Estes (R-Kan.), Carol Miller (R-W.Va.), Max Miller (R-Ohio), and Adrian Smith (R-Neb.).