H.R. 420 – Reading Mode

115th CONGRESS

1st Session

H. R. 420

IN THE HOUSE OF REPRESENTATIVES

January 10, 2017

Mrs. Lawrence introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to permanently increase the limitations on the deduction for start-up and organizational expenditures.

Short title

This Act may be cited as the Promote Startups Act of 2017.

Permanent increase of limitation on deduction for start-up and organizational expenditures

(a)

Start-Up expenditures

(1)

In general

Section 195(b)(1)(A)(ii) of the Internal Revenue Code of 1986 is amended—

(A)

by striking $5,000 and inserting $15,000, and

(B)

by striking $50,000 and inserting $150,000.

(2)

Conforming amendment

Section 195(b) of such Code is amended by striking paragraph (3).

(b)

Organizational expenditures

Section 248(a)(1)(B) of such Code is amended—

(1)

by striking $5,000 and inserting $10,000, and

(2)

by striking $50,000 and inserting $60,000.

(c)

Effective date

The amendments made by this section shall apply to amounts paid or incurred with respect to—

(1)

in the case of the amendments made by subsection (a), trades or businesses beginning in taxable years beginning after December 31, 2016, and

(2)

in the case of the amendments made by subsection (b), corporations the business of which begins in taxable years beginning after such date.