SBE Council Statement of Support for the Senator Blackburn’s “American Innovation Act”

By SBE Council at 27 March, 2026, 4:00 pm

The following statement of support for the "American Innovation Act" introduced by Senator Marsha Blackburn (R-TN) on March 27, can be attributed to Small Business & Entrepreneurship Council (SBE Council) President & CEO Karen Kerrigan:

"Startups and small businesses are the primary drivers of economic dynamism and job creation, yet many struggle to survive or launch securely due to cost pressures and limited capital. That is why SBE Council strongly supports the 'American Innovation Act.' This important legislation will help to ease early-stage barriers by updating federal tax policy, increasing the amount that start-up entrepreneurs can deduct in their first year of operation from $5,000 to $20,000. The bill also raises the phase-out threshold from $50,000 to $120,000. Moreover, the 'American Innovation Act' takes into account the various ways that startups structure their businesses and expands eligibility to partnerships and S corporations."

"These reforms put more resources into the hands of entrepreneurs during their critical launch year, empowering founders to reinvest in their companies. By lowering the tax burden on risk-taking and innovation, the 'American Innovation Act' supports job creation, fuels investment, and strengthens the broader economy. SBE Council applauds Senator Blackburn for her leadership in introducing this important legislation, and we urge every member of the U.S. Senate to strengthen entrepreneurship by supporting this important bill."

See Senator Blackburn's media release about the "American Innovation Act" here.

U.S. Representative Vern Buchanan (R-Fla.) introduced companion legislation in the House.

SBE Council is a nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For more than 30 years, SBE Council has advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth.

Visit www.sbecouncil.org for additional information. X: @SBECouncil

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