#MEMEAct The **MEME Act** (Motivating Entrepreneurs through Modernizing Exclusions Act) is a proposed U.S. tax reform bill aimed at supporting small businesses and startups by adjusting how certain early-stage investments are taxed. Here’s a breakdown of its key aspects:

### **Key Provisions of the MEME Act:**

1. **Exclusion of Small Business Investments from Taxation**

- Allows entrepreneurs to exclude up to **75% of gains** from the sale of small business stock if held for at least **3 years** (similar to but expanding on Section 1202 of the Internal Revenue Code).

- Aims to incentivize long-term investment in startups.

2. **Modernizing the Qualified Small Business Stock (QSBS) Rules**

- Expands eligibility for QSBS tax benefits to more types of businesses, including certain **pass-through entities** (e.g., LLCs, partnerships).

- Adjusts inflation thresholds for qualification.

3. **Encouraging Employee Ownership**

- Provides tax relief for employee stock ownership plans (ESOPs) and equity compensation in startups.

4. **Supporting Innovation & Meme Economy**

- Some interpretations suggest it could also apply to digital assets (e.g., crypto, NFTs) if tied to small business ventures, though this is speculative.

### **Status of the Bill (as of 2025):**

- **Introduced in 2023** but has not yet passed.

- Backed by some lawmakers as a way to boost entrepreneurship, but faces debate over revenue impacts.

### **Why "MEME" Act?**

While the name plays on internet culture, it’s actually an acronym (**Motivating Entrepreneurs through Modernizing Exclusions**). However, its association with "meme stocks" (like GameStop, AMC) and crypto has sparked discussions about its broader implications.

Would you like details on its political support or potential economic impact?