1.501 -Small Business Stock, Capital Gains Tax Rate

Item	Description	FY2011	FY2012	FY2013	FY2014	FY2015
1.501	Small Business Stock, Capital Gains Tax Rate Gains derived from the sale of investments which meet certain requirements are taxed at a rate of 3% instead of regular Part B rate. In order to qualify for the 3% rate, investments must have been made within five years of the corporation's date of incorporation and must be in stock that generally satisfies the definition of "qualified small business stock" under I.R.C. S. 1202 (c), other than the requirement that the stock be stock of a C corporation. In addition, the stock must be held for three years or more and the investments must be in a corporation which (a) is domiciled in Massachusetts, (b) is incorporated on or after January 1, 2011, (c) has less than $50 million in assets at the time of investment, and (d) complies with certain of the "active business" requirements of I.R.C. S. 1202 of the Internal Revenue. Origin: An Act Relative to Economic Development Reorganization (St. 2010, c. 240), Section 111 Estimate: $0.7	N.A.	N.A.	N.A.	0.1	0.7

Key:

ORIGIN
IRC	Federal Internal Revenue Code (26 U.S.C.)
U.S.C	United States Code
M.G.L.	Massachusetts General Laws
Rev. Rul.; C.B.	Revenue Ruling; Cumulative Bulletin of the U.S. Treasury
ESTIMATES	All estimates are in $ millions.