,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #cbhg  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #bi1 #bjae ,mr4 
,m>*ant 7= himself & ,mrs4 ,black7      
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to cl>ify ! treatm5t (    
banks organiz$ z limit$ liability       
companies4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,community ,bank        
,flexibility ,act4  #b4 ,treatm5t (     
banks organiz$ z limit$ liability       
companies  7a7 ,9 g5]al ,section #eha ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$--  7#a7 by /rik+ ,= purposes ( &  
ins]t+ ! foll[+3  7a7 ,9 g5]al ,=       
purposes (  1 &  7#b7 by add+ at ! end !
 foll[+ new subsection3  7b7 ,treatm5t (
 limit$ liability companies1 etc  7#a7  
,9 g5]al ,an entity %all n fail to be   
treat$ z a bank "u subsection 7a7 m]ely 
because su* entity is a specifi$ entity 
7or because su* entity elects to be     
treat$ ei!r z a corporation or z a      

p>tn]%ip = purposes ( ?is title74  7#b7 
,specifi$ entity ,= purposes ( ?is      
subsection1 ! t]m specifi$ entity means 
any entity :i* may elect to be treat$   
ei!r z a corporation or z a p>tn]%ip =  
purposes ( ?is title4  7#c7             
,transitional rules  7,a7               
,reorganizations ,9 ! case ( any        
acquisition or transf] dur+ ! #e-ye>    
p]iod beg9n+ on ! date ( ! enactm5t (   
?is subsection1 any specifi$ entity :i* 
7aft] su* acquisition or transf]7       
qualifies z a bank "u p>agraph 7#a7 %all
 be treat$ z a corporation = purposes ( 
apply+ section #cfh7;a77#a74  7,b7 ,tax 
impos$ on c]ta9 built-9 ga9s  7i7 ,9    
g5]al ,9 ! case ( any specifi$ entity ) 
respect to :i* any transf] or           
acquisition is treat$ z a reorganization
 "u section #cfh7;a77#a7 by reason ( ?is
 p>agraph1 rules simil> to ! rules (    
section #acgd %all apply ) respect to   
su* specifi$ entity by treat+ su*       
reorganization 9 ! same mann] z an      
election "u section #acfb7;a7 7& by     

treat+ ! specifi$ entity z an ,s        
corporation & ! o!r corporation )       
respect to su* reorganization z ! small 
bus9ess corporation mak+ su* election74 
7ii7 ,special rule = reorganizations    
dur+ recognition p]iod ( an ,s          
corporation bank ,9 ! case ( a transf]  
or acquisition to :i* clause 7i7        
applies1 if-- 7,i7 ! o!r corporation    
ref]r$ to 9 clause 7i7 is an ,s         
corporation1 &  7,,ii7 su* transf] or   
acquisition occurs dur+ ! recognition   
p]iod 7z def9$ 9 section #acgd7;d77#g77 
( su* ,s corporation1  ! recognition    
p]iod ( ! specifi$ entity det]m9$ by    
reason ( ! application ( clause 7i7 %all
 n include any taxable ye> ( ! specifi$ 
entity :i* beg9s aft] ! recognition     
p]iod ( su* ,s corporation4  7,c7       
,election to h transition rules n apply 
,subp>agraphs 7,a7 & 7,b7 %all n apply  
if ! specifi$ entity ref]r$ to 9 su*    
subp>agraphs elects "u ?is subp>agraph  
to h su* subp>agraphs n apply4 ,any su* 
election %all1 except z o!rwise provid$ 

by ! ,secret>y1 be made contemporane\sly
 ) ! acquisition or transf] ref]r$ to 9 
subp>agraph 7,a74  4  7b7 ,effective    
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft] !
 date ( ! enactm5t ( ?is ,act4