QSBS Planning/Holding Period Timeline

QSBS Holding Period & Exclusion Rules

The One Big Beautiful Bill Act (July 2025) introduced tiered exclusions for newly issued stock. Here's how the old and new rules compare.

PRE-OBBBA

Original Rules

Stock issued on or before July 4, 2025

< 5 yrs

5+ yrs

100%

All or nothing. No exclusion until more than 5 years.

POST-OBBBA

New Tiered Rules

Stock issued after July 4, 2025

< 3 yrs

3 yrs

50%

4 yrs

75%

5+ yrs

100%

Partial exclusions available earlier.

Important tax rate note

Gain excluded at the 3-year (50%) or 4-year (75%) tier is taxed at a 28% capital gains rate — not the standard 20% long-term rate. This means selling early can actually increase your effective tax rate on the non-excluded portion.

Exclusion Caps

Pre-OBBBA

$10M

or 10x adjusted basis, per taxpayer per company

Post-OBBBA

$15M

or 10x adjusted basis, per taxpayer per company

Gross Asset Limits

Pre-OBBBA

$50M

maximum aggregate gross assets at time of issuance

Post-OBBBA

$75M

maximum aggregate gross assets at time of issuance

Which rules apply to your stock?

The date your stock was issued determines which rules govern — not the date you sell. Read our comprehensive QSBS guide →