,,ii  #aag? ,,congress  #a/ ,session    
,s4 #bgeh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #bj1         
#bjba,mr4 ,br[n 7= himself & ,mr4 ,wyd57
 introduc$ ! foll[+ bill2 :i* 0 read    
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to impose an      
excise tax on /ock buybacks ( publicly  
trad$ corporations4  #a4 ,%ort title    
,?is ,act may be cit$ z ! ,/ock ,buyback
 ,acc\ntability ,act ( #bjba4  #b4      
,excise tax on repur*ase ( corporate    
/ock  7a7 ,9 g5]al ,subtitle ,d ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] *apt] #cf ! foll[+ new   
*apt]3  #cg ,repur*ase ( corporate /ock 
,sec4 #deja4 ,repur*ase ( corporate     
/ock4  #deja4 ,repur*ase ( corporate    
/ock  7a7 ,g5]al rule ,!re is h]eby     
impos$ on ea* cov]$ corporation a tax   
equal to #b p]c5t ( ! value ( any /ock (
 ! corporation repur*as$ by su*         
corporation dur+ ! taxable ye>4  7b7    
,cov]$ corporation ,= purposes ( ?is    

section1 ! t]m cov]$ corporation means--
 7#a7 any dome/ic corporation ! /ock (  
:i* is trad$ on an e/abli%$ securities  
m>ket 7)9 ! mean+ ( section             
#ggjd7;b77#a771 &  7#b7 any surrogate   
=eign corporation 7z det]m9$ "u section 
#ghgd7;a77#b77;,b77 ! /ock ( :i* is     
trad$ on an e/abli%$ securities m>ket   
7)9 ! mean+ ( section #ggjd7;b77#a774   
7c7 ,repur*ase ,= purposes ( ?is        
section-- 7#a7 ,9 g5]al  7,a7 ,9 g5]al  
,! t]m repur*ase means a r$emption )9 ! 
mean+ ( section #cag7;b7 7appli$ z      
provid$ 9 subp>agraph 7,b77 or any      
simil> transaction 7z det]m9$ by !      
,secret>y7 ) reg>d to ! /ock ( a cov]$  
corporation4  7,b7 ,application to      
economically equival5t transactions ,=  
purposes ( apply+ section #cag7;b7 to   
?is section-- 7i7 ! acquisition by a    
corporation ( ! "r to acquire its /ock1 
&  7ii7 to ! ext5t provid$ by !         
,secret>y1 any transaction economically 
simil> to ! acquisition by a corporation
 ( its /ock1  %all be treat$ 9 ! same   

mann] z ! acquisition by a corporation (
 its /ock "u su* section #cag7;b74  7#b7
 ,treatm5t ( pur*ases by specifi$       
affiliates  7,a7 ,9 g5]al ,! acquisition
 ( /ock ( a cov]$ corporation by a      
specifi$ affiliate ( su* cov]$          
corporation f a p]son :o is n ! cov]$   
corporation or a specifi$ affiliate (   
su* cov]$ corporation %all be treat$ z a
 repur*ase ( ! /ock ( ! cov]$           
corporation by su* cov]$ corporation4   
7,b7 ,special rules = =eign-p>5t$       
dome/ic corporations  7i7 ,9 g5]al ,9 ! 
case ( an acquisition ( /ock ( an       
applicable =eign corporation by a       
specifi$ affiliate ( su* corporation f a
 p]son :o is n ! applicable =eign       
corporation or a specifi$ affiliate (   
su* applicable =eign corporation1 =     
purposes ( ?is section-- 7,i7 su*       
specifi$ affiliate %all be treat$ 9 !   
same mann] z a cov]$ corporation )      
respect to su* acquisition1 &  7,,ii7   
su* acquisition %all be treat$ z a      
repur*ase ( ! /ock ( su* specifi$       

affiliate by su* specifi$ affiliate4    
7ii7 ,applicable =eign corporation ,=   
purposes ( ?is subp>agraph1 ! t]m       
applicable =eign corporation means any  
=eign corporation :i* w\ld be treat$ z a
 cov]$ corporation "u ?is section if x 7
 a dome/ic corporation4  7,c7 ,specifi$ 
affiliate ,= purposes ( ?is section1 !  
t]m specifi$ affiliate means1 ) respect 
to any corporation-- 7i7 any dome/ic    
corporation m ?an #ej p]c5t ( ! /ock (  
:i* is own$ 7by vote or by value71      
directly or indirectly1 by su*          
corporation1 &  7ii7 any dome/ic        
p>tn]%ip m ?an #ej p]c5t ( ! capital    
int]e/s or pr(its int]e/s ( :i* is held1
 directly or indirectly1 by su*         
corporation4  7#c7 ,adju/m5t ,! am\nt ( 
any /ock repur*as$ by a cov]$           
corporation tak5 into acc\nt "u         
subsection 7a7 %all be r$uc$ by-- 7,a7 !
 value ( any /ock newly issu$ by ! cov]$
 corporation dur+ ! taxable ye>1 &  7,b7
 ! value ( any /ock issu$ to employees (
 su* cov]$ corporation dur+ ! taxable   

ye>1 includ+ 9 response to ! ex]cise (  
an option to pur*ase /ock ( ! cov]$     
corporation4  7d7 ,exceptions           
,subsection 7a7 %all n apply-- 7#a7 to !
 ext5t t ! repur*ase is "p ( a          
reorganization 7)9 ! mean+ ( section    
#cfh7;a77 & no ga9 or loss is recogniz$ 
"u *apt] #a on su* repur*ase by reason (
 su* reorganization1  7#b7 9 any case 9 
:i* ! /ock repur*as$ is1 or an am\nt (  
/ock equal to ! value ( ! /ock repur*as$
 is1 contribut$ to an employ]-sponsor$  
retirem5t plan1 employee /ock own]%ip   
plan1 or simil> plan1  7#c7 9 any case 9
 :i* ! total value ( ! /ock repur*as$   
dur+ ! cal5d> ye> does n exce$          
#a1jjj1jjj1  7#d7 "u regulations        
prescrib$ by ! ,secret>y1 9 cases 9 :i* 
! repur*ase is by a deal] 9 securities 9
 ! ord9>y c\rse ( bus9ess1 or  7#e7 to !
 ext5t t ! repur*ase is treat$ z a      
divid5d = purposes ( ?is title4  7e7    
,d5ial ( d$uction ,no d$uction %all be  
all[$ "u any provision ( ?is title )    
reg>d to ! tax impos$ by ?is section4   

7f7 ,regulations & guidance ,! ,secret>y
 %all prescribe su* regulations & o!r   
guidance z are necess>y or appropriate  
to adm9i/] & to prev5t ! avoidance ( !  
purposes ( ?is section1 includ+         
regulations & o!r guidance-- 7#a7 to    
prev5t ! abuse ( ! exceptions provid$ by
 subsection 7d71  7#b7 ) respect to !   
id5tification ( transactions to :i*     
subsection 7c77#a77;,b77ii7 applies1    
7#c7 to address special classes ( /ock &
 pref]r$ /ock1 &  7#d7 = ! application (
 ! rules "u subsection 7c77#b74  4  7b7 
,cl]ical am5dm5t ,! table ( *apt]s =    
subtitle ,d ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by ins]t+ aft] ! item   
relat+ to *apt] #cf ! foll[+ new item3  
,*apt] #cg--,repur*ase ( corporate /ock 
4  7c7 ,effective date ,! am5dm5ts made 
by ?is section %all apply to repur*ases 
7)9 ! mean+ ( section #deja7;c7 ( !     
,int]nal ,rev5ue ,code ( #aihf1 z add$  
by ?is section7 ( /ock aft] ,decemb]    
#ca1 #bjba4