,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #bcci  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #c1 #bjag,mr4    
,m>*ant introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to modify ,s corporation 
%>ehold] & pref]r$ /ock rules ) respect 
to banks4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,capital ,access = ,small  
,bus9ess ,banks ,act4  #b4 ,s           
corporation banks p]mitt$ to h #ejj     
%>ehold]s  7a7 ,9 g5]al ,section        
#acfa7;c7 ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#g7 ,bank %>ehold]     
limit ,9 ! case ( a bank 7z def9$ 9     
section #eha7 or a depository in/itution
 hold+ company 7z def9$ 9 section       
#c7w77#a7 ( ! ,f$]al ,deposit ,insurance
 ,act 7#ab ,u4,s4,c4 #ahac7w77#a7771    
subsection 7b77#a77;,a7 %all be appli$  
by sub/itut+ #ejj %>ehold]s = #ajj      
%>ehold]s4  4  7b7 ,effective date ,!   
am5dm5t made by ?is section %all apply  

to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjag4  #c4 ,bank issuance (       
pref]r$ /ock p]mitt$  7a7 ,9 ,g5]al     
,section #acfa ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new subsection3  7h7 ,treatm5t 
( ,qualifi$ ,pref]r$ ,bank ,/ock  7#a7  
,9 g5]al ,qualifi$ pref]r$ bank /ock    
%all n be tak5 into acc\nt z out/&+ /ock
 ( ! ,s corporation = purposes ( ?is    
sub*apt] 7o!r ?an subsection            
7b77#a77;,a7 & section #acfh7;g774  7#b7
 ,qualifi$ pref]r$ bank /ock ,= purposes
 ( ?is subsection1 ! t]m qualifi$       
pref]r$ bank /ock means /ock :i*-- 7,a7 
is issu$ by a bank 7z def9$ 9 section   
#eha7 or a depository in/itution hold+  
company 7z def9$ 9 section #c7w77#a7 ( !
 ,f$]al ,deposit ,insurance ,act 7#ab   
,u4,s4,c4 #ahac7w77#a7771  7,b7 is n    
held by a p]son ineligible "u subsection
 7b77#a7 to be a %>ehold] ( a small     
bus9ess corporation1 &  7,c7 meets !    
requirem5ts ( subp>agraphs 7,a71 7,b71 &
 7,c7 ( section #aejd7;a77#d74  4  7b7  

,di/ributions includible 9 %>ehold]     
gross income & d$uctible by ,s          
corporation ,section #acfh ( su* ,code  
is am5d$ by add+ at ! end ! foll[+ new  
subsection3  7g7 ,qualifi$ pref]r$ bank 
/ock ,if a %>ehold] receives a          
di/ribution 7n 9 "p or full paym5t 9    
ex*ange = /ock7 f an ,s corporation )   
respect to any qualifi$ pref]r$ bank    
/ock 7z def9$ 9 section #acfa7;h77--    
7#a7 ! am\nt ( su* di/ribution %all be  
includible 9 gross income ( ! %>ehold]1 
&  7#b7 !re %all be all[$ z a d$uction  
by ! corporation = ! taxable ye> ( su*  
corporation 9 :i* or ) :i* ends !       
taxable ye> 9 :i* su* am\nt is includ$ 9
 ! gross income ( ! %>ehold] an am\nt   
equal to ! am\nt :i* be>s ! same ratio  
to ! am\nt ( su* di/ribution z--  7,a7 !
 highe/ rate ( tax 9 effect = ! taxable 
ye> ) respect to individuals = qualifi$ 
divid5d income 7z def9$ 9 section       
#a7;h77#aa771 ov]  7,b7 ! highe/ rate ( 
tax 9 effect = ! taxable ye> ) respect  
to individuals "u subsections 7a71 7b71 

7c71 & 7d7 ( section #a 7aft] !         
application ( subsection 7i7 !re(74  4  
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjag4