OBBBA: The 2025 Big Beautiful Bill, Key Changes for Startups
Written by Aparna Devalla
Curated by Rubric Financial
Last updated
1 / 6
QSBS: The Headline Win for Founders
- §1202 EXCLUSION CAP INCREASED FROM $10M to $15M for QSBS issued after July 4, 2025. Per taxpayer, per company.
- 10x basis cap unchanged: exclusion is still the greater of $15M or 10x the taxpayer's adjusted basis in the stock.
- Holding period unchanged: 5 years from original issuance to qualify for the exclusion.
- Practical: founders incorporating now or raising priced rounds after July 4, 2025 benefit immediately. Founders with older QSBS (pre-July 2025 issuance) still subject to the $10M cap on those shares. Strategy: subsequent issuances (option exercises, follow-on grants) post-July 2025 get the new $15M cap independently.
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About the author
Aparna DevallaCPAHead of Tax & Accounting
CPA and Head of Tax & Accounting at StartupCFO. Specializes in multi-state tax compliance, R&D credits, and GAAP-compliant books for venture-backed startups.
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GlossaryQSBS (Qualified Small Business Stock)
Tax exclusion for gains on qualifying startup stock, up to 100% after 5 years (tiered from 3 years for post-July-2025 stock).
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