,,ib  ,union ,calendar ,no4 #cag  #aacth
 ,,congress  #b;d ,session  ,h4 ,r4     
#ddec  ,report ,no4 #aac-dbi  ,,in ,,the
 ,,house ,,of ,,representatives  ,april 
#aj1 #bjad ,mr4 ,reichert 7for himself  
and ,mr4 ,kind7 introduced the following
 bill2 which was referred to the        
,committee on ,ways and ,means  ,may #b1
 #bjad ,additional sponsor3 ,mr4 ,reed  
,may #b1 #bjad ,reported with an        
amendment1 committed to the ,committee  
of the ,whole ,house on the ,state of   
the ,union1 and ordered to be printed   
,strike out all after the enacting      
clause and insert the part printed in   
italic  ,a ,,bill  ,to amend the        
,internal ,revenue ,code of #aihf to    
make permanent the reduced recognition  
period for built-in gains of ,s         
corporations4  #a4 ,reduced recognition 
period for built-in gains of ,s         
corporations made permanent  7a7 ,in    
general ,paragraph 7#g7 of section      
#acgd7;d7 of the ,internal ,revenue     
,code of #aihf is amended to read as    

follows3  7#g7 ,recognition period  7,a7
 ,in general ,the term recognition      
period means the #e-year period         
beginning with the #ast day of the #ast 
taxable year for which the corporation  
was an ,s corporation4 ,for purposes of 
applying this section to any amount     
includible in income by reason of       
distributions to shareholders pursuant  
to section #eic7;e71 the preceding      
sentence shall be applied without regard
 to the phrase #e-year4  7,b7           
,installment sales ,if an ,s corporation
 sells an asset and reports the income  
from the sale using the installment     
method under section #dec1 the treatment
 of all payments received shall be      
governed by the provisions of this      
paragraph applicable to the taxable year
 in which such sale was made4  4  7b7   
,effective date ,the amendment made by  
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjac4  #a4 ,short title ,this ,act may 
be cited as the ,permanent ,s           

,corporation ,built-in ,gains           
,recognition ,period ,act of #bjad4  #b4
 ,reduced recognition period for        
built-in gains of ,s corporations made  
permanent  7a7 ,in general ,paragraph   
7#g7 of section #acgd7;d7 of the        
,internal ,revenue ,code of #aihf is    
amended to read as follows3  7#g7       
,recognition period  7,a7 ,in general   
,the term recognition period means the  
#e-year period beginning with the #ast  
day of the #ast taxable year for which  
the corporation was an ,s corporation4  
,for purposes of applying this section  
to any amount includible in income by   
reason of distributions to shareholders 
pursuant to section #eic7;e71 the       
preceding sentence shall be applied     
without regard to the phrase #e-year4   
7,b7 ,installment sales ,if an ,s       
corporation sells an asset and reports  
the income from the sale using the      
installment method under section #dec1  
the treatment of all payments received  
shall be governed by the provisions of  

this paragraph applicable to the taxable
 year in which such sale was made4  4   
7b7 ,effective date ,the amendment made 
by this section shall apply to taxable  
years beginning after ,december #ca1    
#bjac4  ,may #b1 #bjad ,reported with an
 amendment1 committed to the ,committee 
of the ,whole ,house on the ,state of   
the ,union1 and ordered to be printed