Maine and Oregon tax startup exits after ending federal QSBS conformity
Updated
Updated · CNBC · May 8
Maine and Oregon tax startup exits after ending federal QSBS conformity
8 articles · Updated · CNBC · May 8
The move follows the One Big Beautiful Bill Act raising the federal QSBS capital-gains exclusion to $15m from $10m and expanding eligible company assets to $75m.
Lawyers say wealthy founders and investors may respond by relocating or using trusts, though Maine's rules are stricter and changing domicile requires genuinely uprooting one's life.
New York and Washington state failed to pass similar measures, while Alabama, Mississippi, Pennsylvania and California already tax QSBS gains; Treasury research says taxpayers earning over $1m receive nearly 75% of excluded gains.
States are now taxing startup windfalls. Will this secure their budgets, or will it just export their next generation of innovators and wealth?
Can secretive trusts in states like Nevada truly shield startup fortunes from taxes, or is this a high-stakes gamble against state auditors?