,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #ihda  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #bb1 #bjbf,mr4  
,c>ey introduc$ ! foll[+ bill2 :i* 0    
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to mod]nize rules relat$ 
to publicly trad$ p>tn]%ips1 & = o!r    
purposes4  #a4 ,%ort title  ,?is ,act   
may be cit$ z ! ,advanc+ ,capital =     
,critical ,en]gy ,supply & ,security    
,act or ! ,,access ,act4  #b4           
,mod]nization ( rules relat$ to publicly
 trad$ p>tn]%ips  7a7 ,exclusion ( c]ta9
 publicly trad$ classes ( units f       
unrelat$ bus9ess taxable income ,section
 #eab7;b7 ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#bj7 ,treatm5t (       
publicly trad$ classes ( units (        
publicly trad$ p>tn]%ips ,!re %all be   
exclud$ any income1 ga91 d$uction1 loss1
 or cr$it attributable to publicly trad$
 classes ( units ( a publicly trad$     
p>tn]%ip 7z def9$ 9 section #ggjd7;b77  

:i* is n treat$ z a corporation "u      
section #ggjd7;c71 provid$ t ! b5eficial
 own] ( su* publicly trad$ classes (    
units owns 7or is consid]$ z own+ )9 !  
mean+ ( section #cah7 less ?an #e p]c5t 
( ! capital or pr(its ( su* publicly    
trad$ p>tn]%ip4  4  7b7 ,modification ( 
#be p]c5t asset te/ = regulat$ inve/m5t 
companies ,section #hea7;b77#c77;,b7 (  
su* ,code is am5d$-- 7#a7 9 clause 7i71 
by add+ or at ! end1  7#b7 9 clause     
7ii71 by /rik+ 1 or at ! end & ins]t+ a 
p]iod1 &  7#c7 by /rik+ clause 7iii74   
7c7 ,elim9ation ( sep>ate application ( 
passive activity rules 9 case ( publicly
 trad$ p>tn]%ips ,section #dfi ( su*    
,code is am5d$ by /rik+ subsection 7k7 &
 by r$esignat+ subsection 7l7 z         
subsection 7k74  7d7 ,c]ta9 int]e/s 9   
publicly trad$ p>tn]%ips n treat$ z     
effectively connect$ income  7#a7 ,9    
g5]al ,section #hfd7;c77#h7 ( su* ,code 
is am5d$ by r$esignat+ subp>agraphs 7,c7
 ?r\gh 7,e7 z subp>agraphs 7,d7 ?r\gh   
7,f71 respectively1 & by ins]t+ aft]    

subp>agraph 7,b7 ! foll[+ new           
subp>agraph3  7,c7 ,exception = c]ta9   
int]e/s 9 publicly trad$ p>tn]%ips      
,subp>agraph 7,a7 %all n apply 9 ! case 
( a p>tn]'s sale or ex*ange ( a class ( 
p>tn]%ip int]e/ :i* is regul>ly trad$ on
 an e/abli%$ securities ex*ange1 b only 
if at all times dur+ ! #e-ye> p]iod end+
 on ! date ( su* sale or ex*ange1 !     
p>tn] held n m ?an #aj p]c5t ( su*      
class4  4  7#b7 ,)hold+ requirem5ts     
,section #addf7;f77#a7 ( su* ,code is   
am5d$ by ins]t+ 1 o!r ?an a class (     
p>tn]%ip int]e/ :i* is regul>ly trad$ on
 an e/abli%$ securities ex*ange1 aft]   
int]e/ 9 a p>tn]%ip4  7e7 ,effective    
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjbf4