,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #hib  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,febru>y #bh1 #bjac   
,mr4 ,rei*]t 7= himself & ,mr4 ,k9d7    
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to provide = ,s           
corporation re=m1 & = o!r purposes4  #a4
 ,%ort title1 ref]5ce  7a7 ,%ort ,title 
,?is ,act may be cit$ z ! ,s            
,corporation ,mod]nization ,act ( #bjac4
  7b7 ,am5dm5t ( #aihf ,code ,except z  
o!rwise expressly provid$1 :5ev] 9 ?is  
,act an am5dm5t or repeal is express$ 9 
t]ms ( an am5dm5t to1 or repeal (1 a    
section or o!r provision1 ! ref]5ce %all
 be consid]$ to be made to a section or 
o!r provision ( ! ,int]nal ,rev5ue ,code
 ( #aihf4  #b4 ,r$uc$ recognition p]iod 
= built-9 ga9s made p]man5t  7a7 ,9     
g5]al ,p>agraph 7#g7 ( section #acgd7;d7
 7relat+ to def9itions & special rules7 
is am5d$ to read z foll[s3  7#g7        
,recognition p]iod ,! t]m recognition   

p]iod means ! #e-ye> p]iod beg9n+ ) !   
#a/ day ( ! #a/ taxable ye> = :i* !     
corporation 0 an ,s corporation4 ,=     
purposes ( apply+ ?is section to any    
am\nt includible 9 income by reason (   
di/ributions to %>ehold]s pursuant to   
section #eic7;e71 ! prec$+ s5t5ce %all  
be appli$ )\t reg>d to ! duration ( !   
recognition p]iod 9 effect on ! date (  
su* di/ribution4  4  7b7 ,effective date
 ,! am5dm5t made by ?is section--  7#a7 
%all apply = purposes ( det]m9+ !       
recognition p]iod ) respect to #a/ days 
ref]r$ to 9 section #acgd7;d77#g7 ( !   
,int]nal ,rev5ue ,code ( #aihf occurr+  
be=e1 on1 or aft] ,janu>y #a1 #bjac1 b  
7#b7 %all n apply = purposes ( det]m9+ !
 tax impos$ by section #acgd ( su* ,code
 = taxable ye>s end+ be=e su* date4  #c4
 ,repeal ( excessive passive inve/m5t   
income z a t]m9ation ev5t  7a7 ,9 g5]al 
,p>agraph 7#c7 ( section #acfb7;d7      
7relat+ to t]m9ation7 is am5d$ by add+  
at ! end ! foll[+ new subp>agraph3  7,d7
 ,t]m9ation ,?is p>agraph %all n apply  

to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjab4  4  7b7 ,effective ,date ,! 
am5dm5t made by ?is section %all apply  
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjab4  #d4 ,modifications to      
passive income rules  7a7 ,increas$     
,limit  7#a7 ,9 g5]al ,p>agraph 7#b7 (  
section #acge7;a7 7relat+ to tax impos$ 
:5 passive inve/m5t income ( corporation
 hav+ accumulat$ e>n+s & pr(its exce$s  
#be p]c5t ( gross receipts7 is am5d$ by 
/rik+ #be p]c5t & ins]t+ #fj p]c5t4     
7#b7 ,con=m+ am5dm5ts  7,a7 ,subp>agraph
 7,j7 ( section #bf7;b77#b7 is am5d$ by 
/rik+ #be p]c5t & ins]t+ #fj p]c5t4     
7,b7 ,clause 7i7 ( section              
#acge7;b77#a77;,a7 is am5d$ by /rik+ #be
 p]c5t & ins]t+ #fj p]c5t4  7,c7 ,!     
head+ = section #acge is am5d$ by /rik+ 
#be p]c5t & ins]t+ #fj p]c5t4  7,d7 ,!  
table ( sections = "p ,,iii ( sub*apt]  
,s ( *apt] #a is am5d$ by /rik+ #be     
p]c5t 9 ! item relat+ to section #acge &
 ins]t+ #fj p]c5t4  7b7 ,effective date 
,! am5dm5ts made by ?is section %all    

apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjab4  #e4 ,expansion (  
qualify+ b5efici>ies ( an elect+ small  
bus9ess tru/  7a7 ,no ,look ,?r\gh =    
,eligibility ,purposes ,clause 7v7 (    
section #acfa7;c77#b77;,b7 7relat+ to   
treatm5t z %>ehold]s7 is am5d$ by add+  
at ! end ! foll[+ new s5t5ce3 ,?is      
clause %all n apply = purposes (        
subsection 7b77#a77;,c744  7b7          
,effective date ,! am5dm5t made by ?is  
section %all take effect on ,janu>y #a1 
#bjac4  #f4 ,expansion ( ,s corporation 
eligible %>ehold]s to include ,i,r,as   
7a7 ,9 ,g5]al ,clause 7vi7 ( section    
#acfa7;c77#b77;,a7 7relat+ to c]ta9     
tru/s p]mitt$ z %>ehold]s7 is am5d$ to  
read z foll[s3  7vi7 ,a tru/ :i*        
con/itutes an individual retirem5t      
acc\nt "u section #djh7;a71 includ+ "o  
designat$ z a ,ro? ,,ira "u section     
#djh;,a4  4  7b7 ,sale ( ,/ock 9 ,,ira  
,relat+ to ,s ,corporation ,election    
,exempt ,f ,prohibit$ ,transaction      
,rules ,p>agraph 7#af7 ( section        

#dige7;d7 7relat+ to exemptions7 is     
am5d$ to read z foll[s3  7#af7 a sale ( 
/ock held by a tru/ :i* con/itutes an   
individual retirem5t acc\nt "u section  
#djh7;a7 to ! individual = ^: b5efit su*
 acc\nt is e/abli%$ if--  7,a7 su* sale 
is pursuant to an election "u section   
#acfb7;a7 by ! issu] ( su* /ock1  7,b7  
su* sale is = fair m>ket value at ! "t (
 sale 7z e/abli%$ by an indep5d5t       
apprais]7 & ! t]ms ( ! sale are o!rwise 
at lea/ z favorable to su* tru/ z ! t]ms
 t w\ld apply on a sale to an unrelat$  
p>ty1  7,c7 su* tru/ does n pay any     
commissions1 co/s1 or o!r exp5ses 9     
connection ) ! sale1 &  7,d7 ! /ock is  
sold 9 a s+le transaction = ca% n lat]  
?an #abj days aft] ! ,s corporation     
election is made4  4  7c7 ,effective    
,date ,! am5dm5ts made by ?is section   
%all take effect on ,janu>y #a1 #bjac4  
#g4 ,all[ance ( d$uction = *>itable     
contributions = elect+ small bus9ess    
tru/s  7a7 ,9 g5]al ,section            
#fda7;c77#b77;,c7 7relat+ to            

modifications7 is am5d$ by add+ at ! end
 ! foll[+ new s5t5ce3 ,! d$uction =     
*>itable contributions all[$ "u clause  
7i7 %all be det]m9$ )\t reg>d to section
 #fdb7;c71 & ! limitations impos$ by    
section #agj7;b77#a7 on ! am\nt ( !     
d$uction %all be appli$ to ! elect+     
small bus9ess tru/ z if x 7 an          
individual44  7b7 ,effective date ,!    
am5dm5t made by ?is section %all apply  
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjab4  #h4 ,p]man5t rule reg>d+   
basis adju/m5t to /ock ( ,s corporations
 mak+ *>itable contributions ( prop]ty  
7a7 ,9 g5]al ,section #acfg7;a77#b7     
7relat+ to decreases 9 basis7 is am5d$  
by /rik+ ! la/ s5t5ce4  7b7 ,effective  
date ,! am5dm5t made by ?is section %all
 apply to contributions made 9 taxable  
ye>s beg9n+ aft] ,decemb] #ca1 #bjab4