SBE Council Statement of Support for the “American Innovation Act” (H.R. 1778)

By SBE Council at 3 March, 2026, 1:48 pm

The following statement of support for the "American Innovation Act" (H.R. 1778) 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 barriers and limited capital. That is why SBE Council strongly supports H.R. 1778, the American Innovation Act. This important legislation helps reduce early-stage barriers by modernizing federal tax policy to increase the amount small businesses can deduct in their first year of operation from $5,000 to $20,000 and raises the phase-out threshold from $50,000 to $120,000. H.R. 1778 also takes into account the various ways that startups structure their businesses and expands eligibility to partnerships and S corporations."

"These reforms put more money back 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 Representatives Vern Buchanan and Mike Kelly for their leadership in introducing this important legislation. We urge every member of the U.S. House to strengthen entrepreneurship in America by voting to advance H.R. 1778."

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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