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139 STAT. 242 PUBLIC LAW 119–21—JULY 4, 2025 stock issued by such corporation and acquired by the taxpayer on or before the applicable date. ‘‘(5) INFLATION ADJUSTMENT.— ‘‘(A) IN GENERAL.—In the case of any taxable year beginning after 2026, the $15,000,000 amount in paragraph (4)(B) shall be increased by an amount equal to — ‘‘(i) such dollar amount, multiplied by ‘‘(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2025’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof. If any increase under this subparagraph is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000. ‘‘(B) NO INCREASE ONCE LIMIT REACHED.—If, for any taxable year, the eligible gain attributable to dispositions of stock issued by a corporation and acquired by the tax- payer after the applicable date exceeds the applicable dollar limit, then notwithstanding any increase under subpara- graph (A) for any subsequent taxable year, the applicable dollar limit for such subsequent taxable year shall be zero.’’. (3) SEPARATE RETURNS.—Subparagraph (A) of section 1202(b)(3) is amended to read as follows: ‘‘(A) SEPARATE RETURNS.—In the case of a separate return by a married individual for any taxable year— ‘‘(i) paragraph (4)(A) shall be applied by sub- stituting ‘$5,000,000’ for ‘$10,000,000’, and ‘‘(ii) paragraph (4)(B) shall be applied by sub- stituting one-half of the dollar amount in effect under such paragraph for the taxable year for the amount so in effect.’’. (4) EFFECTIVE DATE.—The amendments made by this sub- section shall apply to taxable years beginning after the date of the enactment of this Act. (c) INCREASE IN LIMIT IN AGGREGATE GROSS ASSETS.— (1) IN GENERAL.—Subparagraphs (A) and (B) of section 1202(d)(1) are each amended by striking ‘‘$50,000,000’’ and inserting ‘‘$75,000,000’’. (2) INFLATION ADJUSTMENT.—Section 1202(b) is amended by adding at the end the following: ‘‘(4) INFLATION ADJUSTMENT.—In the case of any taxable year beginning after 2026, the $75,000,000 amounts in para- graphs (1)(A) and (1)(B) shall each be increased by an amount equal to— ‘‘(A) such dollar amount, multiplied by ‘‘(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2025’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof. If any increase under this paragraph is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000.’’. (3) EFFECTIVE DATE.—The amendments made by this sub- section shall apply to stock issued after the date of the enact- ment of this Act. 26 USC 1202 note. Effective date. 26 USC 1202 note. Applicability. Effective date.