percentage Section 1202(a) is amended by adding at the end the following new paragraph: (5) Applicable percentage Except as provided in paragraphs (3) and (4), the applicable percentage under paragraph (1) shall be determined under the following table: Years stock held: Applicable percentage: 3 years 50% 4 years 75% 5 years or more 100% . (3) Continued treatment as not item of tax preference (A) In general Section 57(a)(7) is amended by striking An amount and inserting In the case of stock acquired on or before the date of the enactment of the Creating Small Business Jobs Act of 2010, an amount . (B) Conforming amendment Section 1202(a)(4) is amended— (i) by striking , and at the end of subparagraph (B) and inserting a period, and (ii) by striking subparagraph (C). (4) Other conforming amendments (A) Section 1202(a)(4) is amended by inserting and before the date of the enactment of the Small Business Jobs Act after Act of 2010 . (B) Paragraphs (3) and (4) of section 1202(a) are each amended by inserting held for more than 5 years and after In the case of qualified small business stock . (C) Section 1202(a)(3)(A) of such Code is amended to read as follows: (A) the applicable percentage under paragraph (1) shall be 75 percent, and , (D) Section 1202(a)(4)(A) is amended to read as follows: (A) the applicable percentage under paragraph (1) shall be 100 percent, and . (E) Section 1202(b)(2) is amended by striking more than 5 years and inserting at least 3 years . (F) Section 1202(g)(2)(A) is amended by striking more than 5 years and inserting at least 3 years . (G) Section 1202(j)(1)(A) is amended by striking more than 5 years and inserting at least 3 years . (b) Tacking holding period of convertible debt instruments (1) In general Section 1202(f) is amended— (A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B) and moving such subparagraphs (as so redesignated) 2 ems to the right, (B) by striking conversion of other stock .—If any stock and inserting the following: conversion.— (1) Other stock If