Treasury Working on Rules for Expanded Startup Tax Break

The Treasury Department is “working diligently” on regulations regarding the enhancement of a capital-gains tax break that benefits investors in startups, an official said Saturday.

The scope and timing of the planned regulations on the “qualified small business stock” (QSBS) gain exclusion are still “in flux,” said Evan Adams, a Treasury attorney-adviser, speaking at the American Bar Association Tax Section’s May meeting in Washington.

• The QSBS gain exclusion, under Section 1202, allows founders and early investors in companies to avoid capital-gains taxes on sales of certain stock.
• The QSBS tax break has been around since 1993, but the 2025 ...