With H.R. 1, the “One Big Beautiful Bill Act” (OBBB) now in effect, we’ve updated Carta’s Qualified Small Business Stock (QSBS) Attestation to help you and your shareholders track eligibility and take full advantage of the new benefits.

What’s new?

Support for shorter holding periods: for shares issued on or after July 4, 2025, Carta now tracks eligibility for a partial QSBS exclusion after three years (50%) and four years (75%), with full 100% exclusion available after 5 years.

Support for the new $75M asset cap: Carta automatically checks if newly issued shares qualify under the updated $75M aggregate gross asset limit—so you can confidently verify QSBS eligibility at the time of grant.

Expanded individual gain exclusion: Shareholder letters and eligibility summaries now reflect the increased $15M per-person gain exclusion, unlocking even greater potential tax savings.

Updated dashboard indicators: Carta dashboards and reports now show eligibility based on new QSBS rules and issuance windows. This makes it easier for companies and shareholders to understand their status at a glance.

Why is this valuable?

The new QSBS rules offer significant opportunities for tax savings—but only if companies can accurately track and prove eligibility. Carta’s updates simplify this process. By automating complex eligibility checks and updating shareholder documentation in real time, companies can:

• Maximize potential QSBS tax exclusions across new and existing grants
• Confidently communicate eligibility status to founders, employees, and investors
• Maintain audit-ready records with less manual effort

These upgrades ensure every eligible shareholder is in a position to receive the full benefits of the new law, with built-in transparency and peace of mind.

How do I access the updated attestation?

No action needed, these updates have already been applied to all active QSBS Attestations and portfolios holding QSBS-eligible shares. If you have questions or would like a walkthrough, reach out to your Customer Success team or visit our Help Center.

Anything else to know?

Our team is closely monitoring policy changes and will proactively revisit your company’s QSBS analysis to help you unlock new shareholder opportunities and ensure your audit records remain up to date.