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Tax breaks for small business investments: shorter holding, bigger gains.

This act makes it easier for citizens to get tax breaks on profits from selling small business stock. It shortens the required holding period and increases the percentage of profit that is tax-exempt. This aims to encourage investment in small businesses, potentially supporting job creation and economic growth.
Key points
Profits from selling small business stock can be tax-exempt after just 3 years of ownership, instead of 5 years.
The percentage of tax-exempt profit increases gradually: 50% after 3 years, 75% after 4 years, and 100% after 5 years.
Easier access to the tax break for stock acquired through converting debt to equity and for S corporations.
article Official text account_balance Process page
Expired
Citizen Poll
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Additional Information
Print number: 118_HR_2767
Sponsor: Rep. Kustoff, David [R-TN-8]
Process start date: 2023-04-20
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Investment Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_2767.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-04-20.

What are the main provisions?

Key points include:

  • Profits from selling small business stock can be tax-exempt after just 3 years of ownership, instead of 5 years.
  • The percentage of tax-exempt profit increases gradually: 50% after 3 years, 75% after 4 years, and 100% after 5 years.
  • Easier access to the tax break for stock acquired through converting debt to equity and for S corporations.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Kustoff, David [R-TN-8].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Economy