Small Business Investment Act of 2025

This bill changes the rules for how long someone (who is not a corporation) must hold stock in a small business before they can avoid paying taxes on the money they make from selling it. Right now, you have to hold the stock for more than five years to exclude all of the profit from your income, but this bill would let people start excluding some of the profit after just three years, with a bigger exclusion the longer they hold it. The bill also expands what counts as qualifying small business stock by including stock that comes from converting certain debt, like bonds, into stock, and by allowing stock from more types of corporations to qualify, not just one specific kind.

Your Vote