Small Business Investment Act of 2025

Right now, people who are not corporations can avoid paying taxes on profits from selling certain small business stock, but only if they hold that stock for more than five years. This bill would let those people start getting partial tax breaks sooner — they could exclude 50% of profits after holding the stock for three years, 75% after four years, and 100% after five years. The bill also expands what counts as qualifying small business stock by including stock that comes from converting certain debt instruments like bonds, and by allowing stock from more types of corporations to qualify, not just one specific kind.

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