A bill to amend the Internal Revenue Code of 1986 to provide a 50 percent exclusion for gain from certain small business stock, and for other purposes.

Amends the Internal Revenue Code to exclude from gross income 50 percent of any gain from the sale or exchange of small business stock held for at least two years. Establishes special rules for such exchanges. Treats capital gains on the sale of such stock as a preference item for purposes of the minimum tax.