Expanded QSBS Tax Benefits: Shorter Holding Periods, Higher Exclusions and Broader Eligibility

The recent passage of new federal legislation known as One Big Beautiful Bill (OBBB, formally House Bill 1 of the 119th Congress) brings significant changes to several material programs and tax laws. While some provisions — such as 100% bonus depreciation for certain business aircraft — have received attention, one major update has gone largely unnoticed: significant changes to the treatment of Qualified Small Business Stock (QSBS) under Section 1202 of the Internal Revenue Code (the Code).