PlainBillCongress, translated.Legislation. Context. Public interest.Read twice and referred to the Committee on Finance.
Congressional Research Service
Version 00 · Introduced in Senate · Jun 22, 1995
TABLE OF CONTENTS: Title I: Capital Gains Reform Subtitle A: Capital Gains Deduction for Taxpayers Other Than Corporations Subtitle B: Capital Gains Reduction for Corporations Subtitle C: Capital Loss Deduction Allowed With Respect to Sale or Exchange of Principal Residence Title II: Small Business Venture Capital Stock Capital Formation Act of 1995 - Title I: Capital Gains Reform - Subtitle A: Capital Gains Deduction for Taxpayers Other Than Corporations - Amends the Internal Revenue Code to make, for noncorporate taxpayers, 50 percent of net capital gains deductible from gross income. Allows the deduction in computing adjusted gross income. Subtitle B: Capital Gains Reduction for Corporations - Revises requirements regarding alternative capital gains taxes for corporations. Subtitle C: Capital Loss Deduction Allowed With Respect to Sale or Exchange of Principal Residence - Allows an individual to deduct losses arising from the sale or exchange of the taxpayer's principal residence. Title II: Small Business Venture Capital Stock - Increases from 50 percent to 75 percent the exclusion of any gain from the sale or exchange of qualified small business stock held more than five years and applies the exclusion to corporate as well as noncorporate taxpayers. Removes provisions including, as an item of tax preference, a specified percentage of gains on the sale of certain small business stock. Increases the dollar gross asset limits domestic C corporations must not exceed in order to qualify for the exclusion as small businesses and institutes an inflation adjustment for those limits. Removes provisions relating to a per-issuer limitation on a taxpayer's eligible gain. Modifies: (1) working capital provisions and the definition of "qualified trade or business," both with regard to meeting the active business requirement; and (2) requirements regarding purchases by a corporation of its own stock. Recognizes, if the taxpayer so elects, eligible gain from the sale of qualified small business stock only to the extent that the amount realized exceeds specified factors.
People & committees
Sen. Hatch, Orrin G. [R-UT] · R–UT
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Read twice and referred to the Committee on Finance.
Sponsor introductory remarks on measure. (CR S8949-8950)
Introduced in Senate
Primary sources
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Source last updated: Aug 21, 2025. Consult Congress.gov for the current record.
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