A bill to amend section 1244 of the Internal Revenue Code of 1986 to create a new seed capital industry by providing an incentive for high-risk, long-term, growth-oriented capital investments in small business ventures, and for other purposes.
Seed Capital Formation Act of 1990 - Amends the Internal Revenue Code to allow a tax deduction for capital gains on small business stock held at least five years. Sets forth the formula for determining the applicable percentage of such gain from 25 percent for five years, up to 100 percent for such stock held for ten years.
Establishes a maximum capital gains rate for individuals and corporations with small business stock gain.
Revises the definition of a small business corporation.
Provides for the treatment of a corporation as a small business corporation if its stock does not exceed $5,000,000 (currently $1,000,000). Adjusts such amount for inflation.
Referred to the House Committee on Ways and Means.
Introduced in Senate
Read twice and referred to the Committee on Finance.
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