The Debate Over a Tax Break Designed to Help Startups |
The Debate Over a Tax Break Designed to Help Startups
Supporters argue QSBS is vital to founders and early‑stage growth, while critics question whether it has drifted toward benefiting venture capital.
BY MELISSA ANGELL, SENIOR STAFF WRITER @MELISSKAWRITES
Illustration: Inc; Photo: Getty Images
New York’s tech and venture capital community is pushing back against a state legislative proposal that would eliminate a capital gains tax break widely used by venture investors.
At issue is the qualified small business stock (QSBS) exclusion, which allows investors and founders to exclude up to 100 percent of capital gains on small business stock held for more than five years. The provision, which can shelter millions of dollars in gains, was expanded last year under the One Big Beautiful Bill Act.
State lawmakers........