Qualified small business stock tax break's projected cost rises to $67 billion

The Qualified Small Business Stock tax break is projected to cost the US Treasury $67 billion over the next decade due to surging interest and expanded rules. This provision allows founders and investors to avoid federal taxes on capital gains from qualifying small business stock held for at least five years, with current exemptions up to $15 million or ten times the investment. The tax break, expanded by a 2025 law, is increasingly used by various businesses beyond tech, though the Treasury is scrutinizing potential rule abuses.