The American Innovation Act of 2026 is designed to foster new business development and innovation by reforming the tax code to simplify and expand deductions for start-up and organizational expenses. The primary goal is to alleviate the financial burden on entrepreneurs, making it easier for them to manage initial costs associated with launching new enterprises. A significant provision of the Act allows businesses to deduct up to $20,000 of their start-up costs in the year they commence operations.