The Angel Capital Association is pleased to share that the recently released Senate Finance Committee text on the Republican’s Reconciliation bill “One, Big, Beautiful Bill” includes key provisions from the Small Business Investment Act, marking the first major reform to Section 1202 Qualified Small Business Stock (QSBS) since ACA achieved permanency under the PATH Act signed by President Obama. Among the highlights:
- A tiered capital gains exclusion structure:
- 3-year holding period – 50% exclusion
- 4-year holding period – 75% exclusion
- 5-year or more – 100% exclusion
- An increase in the per-issuer cap from $10M to $15M, indexed to inflation
- An increase in the gross asset eligibility ceiling from $50M to $75M, also indexed to inflation
ACA has long supported these reforms, and the inclusion of these provisions in the latest draft is a major milestone.
While the bill is still subject to change as it moves through Congress, this development reflects meaningful progress. We will continue to monitor the process and keep you informed as it advances.
