Small Business Jobs Act

The Small Business Jobs Act (HR 3937) modifies tax provisions to support small businesses by increasing the threshold for information reporting from $600 to $5,000 with annual inflation adjustments. It changes capital gains treatment for qualified small business stock, allowing greater exclusions based on holding period (50% after 3 years, 75% after 4 years, 100% after 5 years) and increases expensing limits for depreciable business assets to $2.5 million. The bill also establishes special rules for capital gains invested in rural opportunity zones, including deferral options and basis adjustments for long-term investments. Additionally, it creates new reporting requirements for qualified opportunity funds and rural opportunity funds, including detailed information about investments, property, and employment impacts.