American Innovation Act of 2025

This bill changes the tax rules for partnerships. It says that partnerships and their partners cannot deduct the costs of promoting or selling partnership interests (often called “syndication fees”). In plain terms, money spent to market, advertise, or arrange the sale of a partnership stake would not lower taxable income.

Key points

• Who is affected: Partnerships and their partners.
• What changes: No tax deduction for amounts paid to promote or sell a partnership interest (“syndication fees”).
• What it means: These marketing or sales costs would be fully out-of-pocket for tax purposes.