Invest in Small Business Act of 2008

The Invest in Small Business Act of 2008 (H.R. 6507) proposes to change the tax code to provide significant financial incentives for investing in small businesses. If passed, the bill would allow investors to avoid paying federal income tax on the profits earned from selling "qualified small business stock," provided they hold the investment for at least three years. Additionally, the bill would double the size limit for companies to qualify as small businesses—increasing the asset cap to $100 million—and eliminate certain penalties under the Alternative Minimum Tax. These changes are designed to make it more attractive for individuals to provide capital to growing companies, potentially increasing the availability of funding for startups and small-scale enterprises.