US SB1613

Increases the immediate deduction limit for new business start-up and organizational expenditures from $5,000 to $50,000, with the phase-out threshold raised from $50,000 to $150,000 in total expenditures

Consolidates previously separate tax code provisions for start-up expenditures (Section 195) and organizational expenditures (Section 248) into a single unified section

Creates special net operating loss rules allowing taxpayers to elect 100% deduction of start-up and organizational losses (versus the standard 80% limit) and removes the taxable income limitation for these specific losses

Applies election and amortization rules at the entity level for partnerships and S corporations rather than at the individual partner/shareholder level

Effective for expenses paid or incurred in taxable years beginning after December 31, 2025