S.695

Small Business Investment Act of 2025 amends the Internal Revenue Code to modify the exclusion for gain from qualified small business stock.

The Small Business Investment Act of 2025 amends the Internal Revenue Code to modify the exclusion for gain from qualified small business stock. It introduces a phased increase in the exclusion for gain from qualified small business stock, adjusts the holding period requirement, and clarifies the aggregation rules applicable to S corporations. The bill also modifies the treatment of passive losses and provides special rules relating to S corporations. The amendments apply to stock acquired after the date of the enactment of this Act.