QSBS 2.0: Senate Proposal Supercharges Tax Breaks for Startup Investors

By Victor Boyajian, Chris Errico, John Cleary, Rich Williams, Jim Jasaitis and Linda Pfatteicher

On June 16, 2025, the Senate Finance Committee released significant legislative changes to the house version of the budget reconciliation bill, known as the “One Big Beautiful Bill” (the “SFC Bill”), with notable expansions to the Qualified Small Business Stock (“QSBS”) tax exemption. The purpose behind the IRC Section 1202 QSBS exemption is to provide tax incentives to founders and investors in order to encourage investments in small operating companies. The SFC Bill would augment such benefits to those investing in start-up companies.

The full insight, including key amendments for stock acquired after the enactment of the bill, can be found here.