Senate Finance Committee Proposes Massive Expansion of QSBS Tax Benefits
The Senate Finance Committee released its version of proposed legislation following the House's passage of the "One Big Beautiful Bill Act" (H.R. 1). This proposal significantly expands tax benefits for Qualified Small Business Stock (QSBS) acquired after enactment. Key changes include a tiered gain exclusion (higher exclusion for longer holding periods), an increased per-issuer cap ($10M to $15M, inflation-adjusted from 2027), and a higher aggregate gross assets threshold ($50M to $75M, inflation-adjusted from 2027). These changes offer greater flexibility for founders and investors in early-stage companies, mitigating tax consequences of early exits. However, the proposal's fate remains uncertain; companies should monitor legislative developments closely.
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