The bill would change federal tax rules for gains from qualified small business stock. It would set the gain exclusion at 50% for stock held 3 years, 75% for 4 years, and 100% for 5 years or more. It would also let certain investors count time they held qualifying convertible debt toward the stock holding period. The bill would expand eligibility beyond C corporations and set rules for applying some requirements to S corporations.
If you invest in eligible small business stock acquired after the bill becomes law, the length of time you hold it could affect the share of gain excluded from income. For qualifying convertible debt originally issued after enactment, the debt holding period could count after conversion to stock. The bill also changes how some corporation types are treated.
The bill does not specify government spending or provide an estimate of revenue effects. It would change tax treatment.
No publicly available information.
No publicly available information.