Gallego Backs Bill to Give Tax Break to Small Businesses and Entrepreneurs

Bill increases startup tax deduction to $50,000 to give more small businesses the opportunity to grow and combat increasing cost of starting a company
WASHINGTON –During National Small Business Month,Senator Ruben Gallego (D-AZ)backed theTax Relief for New Businesses Actto provide tax relief to entrepreneurs looking to start a small business and reduce barriers for startups. The bill would increase the startup tax deduction from $5,000 to $50,000 and allow businesses to write off more expenses to compensate for the increasing cost of starting a business.
“Arizona is one of the best states in the country to start and grow a small business, and we need to keep it that way,”said Senator Gallego.“This bill gives working families a fair shot at the American dream by cutting startup costs and making it easier to turn a good idea into a good business. That means more jobs and a stronger Arizona economy.”
Currently, small business owners can only deduct up to $5,000 in startup costs in the first year, yet arecent surveyfound that they spend an average of $40,000 to get their businesses off the ground. TheTax Relief for New Businesses Actaims to close that gap and level the playing field.
The legislation was introduced bySenators Jacky Rosen (D-NV), Jeanne Shaheen (D-NH),andTammy Baldwin (D-WI).
Read the full text of the billHERE.
5/9/25