Bill · S. 1613· Senate(119-S-1613)
Tax Relief for New Businesses Act
- Introduced
- 5/6/2025
- Last activity
- 5/6/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Jacky Rosen
- Cosponsors
- - 10 - 0
- Introduced
- In Committee
What this bill would do
The Tax Relief for New Businesses Act seeks to amend the Internal Revenue Code of 1986. It focuses on increasing the limitations for deductible new business expenditures and consolidating provisions for start-up and organizational expenditures. The bill introduces a new definition for organizational expenditures related to the creation of corporations or partnerships. It also changes how these deductions are applied at the entity level for partnerships and S corporations. Additionally, it modifies the application of Net Operating Loss rules. These changes are set to apply to expenses incurred in taxable years beginning after December 31, 2025.
Yes· 3 of 13
Would business owners be better off under this?+9
Directly increases the amount of deductible expenses for new business owners.
Does this make it easier to run a small business?+9
Directly benefits new small businesses by increasing deductible start-up and organizational expenses.
Does this cut taxes for small businesses?+8
Significantly increases deductible limits for start-up and organizational expenditures for new businesses.
The opposite
Does this reduce what the federal government owes?-2
Increasing tax deductions potentially reduces federal tax revenue, which could slightly increase the national debt.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased Deduction Limits for New Businesses: The bill increases the specific dollar limits for deductions. It replaces "$5,000" with "$50,000" and "$50,000" with "$150,000" under section 195(b)(1)(A). (Section 2(b))
-
Consolidation of Business Expenses: The bill merges start-up and organizational expenditures, which may simplify the process for those creating corporations or partnerships. (Section 2(a)(1))
-
Favorable Net Operating Loss Rules: For taxpayers making a specific election, the bill changes how net operating losses are applied, substituting "100 percent" for "80 percent" in certain instances regarding start-up and organizational net operating losses. (Section 2(c)(1)(B)(i))
Potential Negative Impacts for People
- Irrevocable Election Requirement: For those attempting to use the special rules for Net Operating Loss, the election made must be irrevocable, meaning it cannot be undone once decided. (Section 2(c)(4))
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+9Good For Billionaires+5Good For High Net Worth Individuals+5Good For Middle Aged+5Good For Ultra High Net Worth Individuals+5Good For Young Adults+5Good For High Income Households+4Good For Middle Class Households+4
- Economy And Finance
- Improves Small Business Support+9Reduces Small Business Taxes+8Improves Economic Growth+5Increases Job Creation+4Reduces Middle Class Taxes+2Reduces National Debt-2
- 5/6/2025
- Read twice and referred to the Committee on Finance.
- 10 Cosponsors added.
- Introduced in Senate
Angela AlsobrooksDemocrat · Maryland
Tammy BaldwinDemocrat · Wisconsin
Richard BlumenthalDemocrat · Connecticut
Christopher CoonsDemocrat · Delaware
Ruben GallegoDemocrat · Arizona
Martin HeinrichDemocrat · New Mexico
Amy KlobucharDemocrat · Minnesota
Jeanne ShaheenDemocrat · New Hampshire
Elissa SlotkinDemocrat · Michigan
Ron WydenDemocrat · Oregon