Increases Tax Breaks for Small Business Investments

Official: Small Business Investment Act of 2025

IntroducedN/A

Why This Matters

This bill increases tax breaks for investors in small businesses by allowing them to exclude more gains from taxes based on how long they hold the stock.

If you invest in small businesses, you can now exclude up to 100% of your gains if you hold the stock for five years.

Affects: This bill affects individual investors and small business owners looking for funding.

Summary

Medal of Honor Act This bill increases the monthly special pension for living Medal of Honor recipients from $1,406.73 to $8,333.33 and establishes a rate of $1,406.73 for the monthly special pension for surviving spouses of Medal of Honor recipients. Both amounts must be adjusted annually for inflation.

What changes is this bill making?

1. Investors can now exclude up to 100% of their gains from small business stock held for five years or more. 2. The bill lowers the holding period for tax benefits from five years to three years. 3. Tax benefits increase gradually based on how long the stock is held, starting at 50% after three years. 4. This change encourages more investment in small businesses by improving potential returns for investors.

Who is affected?

This bill affects individual investors and small business owners looking for funding.