The Big Beautiful Bill just passed. The two biggest and most beautiful takeaways for private equity:
1. Carried interest = No change Trump, who isn’t a fan if money managers, wanted to remove the carried interest loophole (where it is taxed as long term capital gains after 3 years). Musk, MAGA, and the Democrats supported him, but the finance lobbyists won to keep it as-is.
2. QSBS = ExpandedWhere previously QSBS could eliminate capital gains tax for certain C-Corp stock sales after 5 years of up to $50m (or $10m per shareholder), the scope is now increased to $75m ($15m per shareholder) and there are tiered tax savings starting already at 3 years. Expect more C-Corps & QSBS going forward.
