Ordinarily costs paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business must be capitalized, but a special tax rule allows them to be deducted in the first year of business. The Promote Startups Act of 2017 (H.R. 419) (and H.R. 420) would increase the deduction limit for start-up expenditures from $5,000 to $15,000. It would also increase the amount of expenditures at which the upfront deduction phases out.