Open Source Software and Tax Breaks?

Mr. Magoo asks: "I know it's early but I'm already thinking about taxes. I started gathering up receipts, bank statements and paychecks. While doing so I had an interesting idea. Perhaps if there are any CPAs or tax attorneys out there reading Slashdot one of them can set me straight. I'm developing an application in my spare time and will release it as an Open Source project. I'm not looking for any kind of monetary compensation -- I'm doing it because I enjoy programming -- but perhaps with some creative accounting I can get Uncle Sam to contribute to my project. Would it be kosher with the tax laws to turn my project into a business organized as a sole proprietorship? There would never be any revenue to pay taxes on but there would be a number of deductions to take such as the depreciation of office equipment. I'm guessing you could even pay yourself a small salary (from your own savings) and that would result in your company having losses for the year which would be beneficial tax wise. So what's the verdict? Could Uncle Sam indirectly fund Open Source projects?"