To amend the Internal Revenue Code of 1986 to modify the exclusion for gain from qualified small business stock.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill expands amending tax laws to reduce holding period for qualified small business stock from 5 years to 3 years, introducing phased increase in exclusion percentage and expands amend tax laws to increase exclusion for gains from qualified small business stock. It relies on tax rate changes. The main policy areas are Finance.
Who Benefits and How
The available clause analysis does not identify a specific beneficiary group.
Who Bears the Burden and How
Small business owners and investors could lose revenue opportunities and Investors and businesses with qualified small business stock could lose revenue opportunities.
Key Provisions
- Expands amending tax laws to reduce holding period for qualified small business stock from 5 years to 3 years, introducing phased increase in exclusion percentage.
- Expands amend tax laws to increase exclusion for gains from qualified small business stock.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill expands amending tax laws to reduce holding period for qualified small business stock from 5 years to 3 years, introducing phased increase in exclusion percentage and expands amend tax laws to increase exclusion for gains from qualified small business stock.
Key Policy Areas
Finance
Primary Purpose
The bill expands amending tax laws to reduce holding period for qualified small business stock from 5 years to 3 years, introducing phased increase in exclusion percentage and expands amend tax laws to increase exclusion for gains from qualified small business stock.
Policy Domains
Title I — Tax Amendments for Small Businesses
Identified Costs
- Small business owners and investors
- Investors and businesses with qualified small business stock
Sponsors
Legislative Progress
IntroducedMr. Cornyn introduced the following bill; which was read twice …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Investors and businesses with qualified small business stock, Small business owners and investors
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
The bill is titled the Small Business Investment Act of 2025.
The bill amends Section 1202(f) to allow for the tacking of holding periods when qualified convertible debt instruments are converted into stock, ensuring that the period during which the debt instrument was held is considered in determining the applicable percentage.
The bill amends various sections of the Internal Revenue Code, including Section 1202(a)(1), (a)(4), and (b)(2) to modify the exclusion for gain from qualified small business stock.
The bill amends Section 1202(c) and (d) to clarify that the gain exclusion applies to qualified small business stock in both C corporations and S corporations, with specific provisions regarding controlled groups of corporations.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology