H.R. 1552 is The Small Business Formation and Job Creation Act, introduced by U.S. Reps. Frank Kratovil (D-Md.) and Chris Lee (R-N.Y.). The legislation increases the start-up tax deduction for new small businesses from $5,000 to $20,000.

“During difficult economic times, it’s critically important that opportunities for entrepreneurs to start their own small businesses are maximized. We should encourage and provide incentives for these risk takers to take the chance and start their own firms – something the current start-up tax deduction limit of $5,000 fails to do.
 
“NFIB thanks U.S. Reps. Kratovil and Lee for recognizing that one of the main roadblocks in starting a small business is funding and cash flow. Most new small businesses face significant start-up costs, including advertising, obtaining licenses, permits and fees, paying rent, hiring business and financial consultants and providing employee training. Under this bill, expenses connected with setting up or investigating the creation of a new business will be deductible up to $20,000 in the first year of the business.
 
“This increase in the start-up deduction allowance for new businesses will help new firms survive the challenging and often expensive first year of business.
 
“NFIB urges Congress to pass this needed legislation that will encourage the creation of new small businesses and lead to job creation. As the nation struggles with the current economic conditions, small business owners, our nation’s job creators, stand ready and willing to lead the country to stronger economic times. Passing this legislation would help small business owners to do just that.”