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Tax Relief for New Businesses: Higher Deductions for Start-up Costs.

This bill significantly increases the amount of money new businesses can immediately deduct for start-up and organizational expenses, raising the limit from $5,000 to $50,000. This change aims to provide substantial financial relief to small and medium enterprises during their crucial initial phase. The law also simplifies tax rules by consolidating various provisions related to these expenditures.
Key points
New businesses can immediately deduct up to $50,000 in start-up and organizational costs (up from $5,000).
The threshold at which this immediate deduction begins to phase out is tripled, increasing from $50,000 to $150,000.
Special rules are introduced for Net Operating Losses (NOLs) resulting from these costs, allowing for a full 100% deduction of those specific losses.
The changes apply to expenses paid or incurred in tax years beginning after December 31, 2024.
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Additional Information
Print number: 118_S_5204
Sponsor: Sen. Rosen, Jacky [D-NV]
Process start date: 2024-09-25
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Tax Relief for New Businesses Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_5204.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-09-25.

What are the main provisions?

Key points include:

  • New businesses can immediately deduct up to $50,000 in start-up and organizational costs (up from $5,000).
  • The threshold at which this immediate deduction begins to phase out is tripled, increasing from $50,000 to $150,000.
  • Special rules are introduced for Net Operating Losses (NOLs) resulting from these costs, allowing for a full 100% deduction of those specific losses.
  • The changes apply to expenses paid or incurred in tax years beginning after December 31, 2024.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Rosen, Jacky [D-NV].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Economy