2 minute read | July.07.2025
On July 4, 2025, President Trump signed into law the “One Big Beautiful Bill Act” that significantly expands the tax benefits available for qualified small business stock (QSBS). The expanded QSBS benefits apply to stock acquired after July 4, 2025, while leaving existing QSBS benefits unchanged for stock acquired on or before that date.
The following chart summarizes the two different sets of QSBS rules that apply depending on when the stock in question was acquired:
|
Stock Acquired On or Before July 4, 2025 |
Stock Acquired After July 4, 2025 |
Required Holding Period |
Must be held for more than 5 years |
Must be held for at least 3 years |
Percentage of Gain Excluded from Gross Income |
If acquired after August 10, 1993 and before February 18, 2009: 50% If acquired after February 17, 2009 and before September 28, 2010: 75% If acquired after September 27, 2010: 100% |
If held for 3 years: 50% If held for 4 years: 75% If held for 5 years or more: 100% |
Per-Issuer Limitation |
$10,000,000 |
$15,000,000, adjusted for inflation beginning in 2027 |
Aggregate Gross Asset Limit |
$50,000,000 |
$75,000,000, adjusted for inflation beginning in 2027 |