Small Business Investment Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 1199 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 1199 To amend the Internal Revenue Code of 1986 to modify the exclusion for gain from qualified small business stock. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 11, 2025 Mr. Kustoff introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to modify the exclusion for gain from qualified small business stock. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Small Business Investment Act of 2025''. SEC. 2. PHASED INCREASE IN EXCLUSION FOR GAIN FROM QUALIFIED SMALL BUSINESS STOCK. (a) In General.--Section 1202(a)(1) of the Internal Revenue Code of 1986 is amended-- (1) by striking ``50 percent'' and inserting ``the applicable percentage'', and (2) by striking ``held for more than 5 years'' and inserting ``held for at least 3 years''. (b) Applicable Percentage.--Section 1202(a) of such Code is amended by adding at the end the following new paragraph: ``(5) Applicable percentage.--Except as provided in paragraphs (3) and (4), the applicable percentage under paragraph (1) shall be determined under the following table: Applicable ``Years stock held: percentage: 3 years................................................ 50% 4 years................................................ 75% 5 years or more........................................ 100%''. (c) Continued Treatment as Not Item of Tax Preference.-- (1) In general.--Section 57(a)(7) of such Code is amended by striking ``An amount'' and inserting ``In the case of stock acquired on or before the date of the enactment of the Creating Small Bu