Franklin: NVCA secured phased QSBS tax exclusions in federal legislation
Bobby Franklin · Strengthening the Competitive Edge of American Startups with Bobby Franklin of NVCA | The Innovators & Investors Podcast · May 5, 2026 · at 28:15
NVCA President and CEO Bobby Franklin describes legislative efforts to replace the 5-year cliff on Section 1202 Qualified Small Business Stock with a phased-in model.
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“So we had recommended making improvements to qualified small business stocks. So you didn't have that five year cliff. And we made the argument that companies might be making bad business decisions because they're waiting for this five years. What if we phased it in? So you can have 50% exclusion after three years, 75% exclusion after four years, and then a hundred percent exclusion after five years. And they put that in the tax bill.”
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