HR1199Referred to Committee

Small Business Investment Act of 2025

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Introduced
In Committee
3
Passed One Chamber
4
Passed Both
5
Signed into Law
119th
Congress
2025-02-11
Introduced
0
Cosponsors
HR
ⓘ
Type

Sponsor

David Kustoff
David Kustoff
Republican · TN · Representative
Votes with party: 98.5% (550 recorded votes)

Full profile: /officials/K000392

Source: Congress.gov · FEC

Cosponsors (0)

Members who have signed on to support this bill since introduction. Source: Congress.gov.

No cosponsors on record. Bills can pass without cosponsors — this often means the sponsor introduced the bill alone, either because it's a messaging bill, a chairman's mark, or simply early in the legislative cycle.

Latest Action

The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →

Referred to the House Committee on Ways and Means.

2025-02-11

Source: Congress.gov

Committee Activity

Currently in

Plain-English Summary

Small Business Investment Act of 2025 This bill reduces the time period a noncorporate taxpayer is required to hold qualified small business stock (QSBS) before a percentage of the gain on the sale or exchange of such stock may be excluded from gross income. (Limitations apply.) The bill also expands QSBS to include qualified debt instruments and certain corporate stock. Under current law, a noncorporate taxpayer may exclude from gross income 100% of the gain from the sale or exchange of QSBS acquired after September 27, 2010 (or a smaller percentage if acquired on or before such date) and held for more than five years. Further, under current law, QSBS must be C corporation stock. (Exclusions and other requirements apply.) The bill allows a noncorporate taxpayer to exclude from gross income 50% of the gain on the sale or exchange of QSBS (purchased after the enactment date of the bill) held for three years, 75% of the gain on the sale or exchange of such stock held for four years, and 100% of the gain on the sale or exchange of such stock held for five years. Further, the bill expands QSBS to include stock acquired through the conversion of a qualified convertible debt instrument (e.g., bond converted into stock). Under the bill, the holding period of such stock includes the time period during which the qualified convertible debt instrument is held. Finally, the bill expands QSBS to include corporate stock, not just C corporation stock. (Limitations apply.).

Plain-English rewrite of the Congressional Research Service summary published on Congress.gov. Cached and reviewed.

Subjects

Taxation
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Related legislation

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