S 4207

The American Innovation Act of 2026 aims to encourage new business innovation by modifying the tax code. It simplifies and expands the deduction for start-up and organizational expenditures, allowing businesses to deduct up to $20,000 in the first year of operation, with an inflation adjustment. The bill also addresses the carryforward of net operating losses and excess tax credits for start-up businesses, preserving these benefits through certain ownership changes. Finally, it clarifies the definition of organizational expenditures and makes other conforming amendments to relevant tax sections.