American Innovation Act This bill amends the Balanced Budget and Emergency Deficit Control Act of 1985 to require certain adjustments to discretionary spending limits in FY2017-FY2021 to accommodate increases in appropriations for agencies that perform basic science research. Adjustments are required for the National Science Foundation, the Department of Energy Office of Science, Department of Defense science and technology programs, National Institute of Standards and Technology Scientific and Technical Research and Services, and the National Aeronautics and Space Administration (NASA) Science Mission Directorate. The bill also requires annual appropriations for each of the programs and agencies referenced in this bill to be at least the amount appropriated in FY2016. The bill exempts appropriations provided pursuant to this bill from sequestration. Sequestration is a process of automatic, usually across-the-board spending reductions under which budgetary resources are permanently cancelled to enforce specific budget policy goals.