Congress·In Committee·H.R. 1199

Small Business Investment Act of 2025

Small Business Investment: Tax Breaks for Investors

Feb 11, 2025·View on Congress.gov·Read full text

This bill is one vehicle in a longer effort. See the full story across every version.View effort →

Next up: A house committeeNo action in 16 months

The Small Business Investment Act of 2025 is currently in the early stages of the legislative process. It was recently introduced and sent to the House Committee on Ways and Means for review. The bill is actively moving as it waits for the committee to consider its next steps.

Legislative Progress

House

Senate

President

Law

Unlikely to pass

Tax changes like this often struggle to pass on their own and usually need to be part of a much bigger budget deal to move forward.

How we got here

This bill’s path across every version that has carried it.

Reintroduced
Reintroduced from H.R. 2767 (118th), which died when its Congress ended.
H.R. 2767 (118th) →

Key Points

This bill aims to encourage more people to put money into small companies by offering bigger tax breaks. It changes the rules so investors can keep more of their profits when they sell their shares in a small business.
Right now, investors often have to wait five years to get a tax break on their gains. This plan would start the tax breaks after only three years, giving a 50 percent discount then and increasing it to a 100 percent discount after five years.
The plan also helps people who start by lending money to a company. If that loan later turns into stock, the time they spent as a lender will count toward the three year waiting period for the tax break.
More types of small businesses would be included under these rules. By adding S corporations to the list, the bill makes it easier for different kinds of local businesses to find people willing to invest in them.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Milestones

2 milestones2 actions

Feb 11, 2025House

Referred to the House Committee on Ways and Means.

Feb 11, 2025

Introduced in House

The bill was officially filed and given a number. It now enters the legislative queue.

No votes or news coverage recorded for this bill yet.

Source Information

Document Type

Congressional Bill

Official Title

Small Business Investment Act of 2025

Bill NumberHR 1199

Congress119th Congress

ChamberHouse of Representatives

Latest ActionReferred to the House Committee on Ways and Means.

Data Sources

Congress.gov

Official legislative information

Read Full Bill Text

Sponsor

Analysis generated by AI. Always verify with official sources.