On December 18, Congress passed the Protecting Americans from Tax Hikes Act, otherwise known as PATH Act. It is a $1 trillion bill, which seems terribly challenging for anyone to absorb. Nonetheless, on page 813, Section 26, a reference is made to a feature that is now a permanent part of the tax code.
This is great news for entrepreneurs and those that are financing startups in the earliest stages of its growth. It’s also a boon for general partners and investors in venture capital funds. This is part of Congress’ interest in encouraging long-term investing. It is expected that the impact it will have on entrepreneurs, as the U.S. economy’s lifeblood, will be significant.
