Skip to Content
A Big Beautiful Benefit For Qualified Small Business Stock
One Big, Beautiful Bill Act
Donald Trump recently signed into law the “One Big, Beautiful Bill Act” (OBBBA) – a budget reconciliation bill that extends the tax cuts originally enacted under the 2017 Tax Cuts and Jobs Act – introducing a range of new tax incentives and implementing significant spending reductions. Among its many tax-focused provisions, OBBBA includes a significant incentive for venture capital funds, angel investors, and other participants in the start-up ecosystem.
Specifically, the legislation enhances the tax advantages tied to Qualified Small Business Stock (QSBS) – typically a stock held by a non-corporate taxpayer for at least five years and acquired at original issuance in exchange for property or services – potentially reshaping how companies attract and retain investment.
Our partner Phil Jelsma addressed these recent enhancements to QSBS in a recent article published in the Los Angeles Daily Journal and The Daily Transcript. By lowering barriers to entry, increasing potential tax savings, and broadening eligibility criteria, these changes potentially unlock new sources of capital for emerging businesses. However, careful planning – especially in light of state non-conformity – is essential to fully realize the benefits.
The full article can be read here (subscriber only).