A more thorough explanation:

Qualified small business stock is a type of stock that qualifies for a tax deduction for investments in small businesses. This means that if you invest in a small business and purchase qualified small business stock, you may be able to deduct up to 100% of the income from that stock on your taxes.

For example, if you invest $10,000 in a small business and purchase qualified small business stock, and that stock generates $5,000 in income, you may be able to deduct the full $5,000 from your taxes.

However, there are certain criteria that must be met in order to qualify for this deduction. First, the small business stock must be held for at least five years. Second, the business must have assets worth less than fifty million dollars at the time the stock was purchased. Third, the stock must be purchased at original issuance, which means that it must be purchased directly from the business.

It's important to note that not all small business stock qualifies for this deduction. Only qualified small business stock from a C corporation is eligible for the full 100% deduction. Stock purchased before the Creating Small Business Job Act of 2010 may only be eligible for a 50-75% deduction.