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BIO Signs Letter to Congress on Importance of Qualified Small Business Stock

October 29, 2021

The undersigned organizations write to encourage policymakers to remove provisions in the Build Back Better Act that would curtail the effectiveness of Qualified Small Business Stock (QSBS) in incentivizing investment in innovative small businesses and startups.

Small businesses and startups are at the heart of the American economy, driving the majority of all new job creation, innovation, and opportunity for their employees.1 As the United States seeks to build a broad-based economic recovery that expands opportunity to more people, our country’s tax regime should advance that ambition.

The Qualified Small Business Stock rule has proven effective in promoting investment in startups and early-stage growth companies in regions and communities across the country. QSBS limits capital gains taxes for founders, employees, and investors in qualified small businesses. To qualify, the enterprise must, among other things, have less than $50 million in assets, 80% of which are used in the active
conduct of a qualified business. And the stock owners must hold the stock for at least five years.

Download Full Comments Below
Coalition Letter on Importance of Qualified Small Business Stock
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The undersigned organizations write to encourage policymakers to remove provisions in the Build Back Better Act that would curtail the effectiveness of Qualified Small Business Stock (QSBS) in incentivizing investment in innovative small businesses…
Section 182 of the Trade Act of 1974, known as the “Special 301” provisions, requires the United States Trade Representative to identify countries that deny adequate and effective intellectual property protections or fair and equitable market access…