,,ii #aai? ,,congress #b;d ,session ,s4 #dahe ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,m>* #be1 #bjbf,mr4 ,:iteh\se 7= himself & ,mr4 ,hawley7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to end ! tax-free treatm5t ( c]ta9 corporate reorganizations t involve l>ge corporations4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,/op ,subsidiz+ ,giant ,m]g]s ,act4 #b4 ,modification ( rules relat+ to corporate reorganizations = c]ta9 l>ge corporations 7a7 ,acquisitive reorganizations ,section #cfh7;a77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,i7 ,special rules ) respect to c]ta9 acquisitive reorganizations describ$ 9 p>agraph 7#a77;,a71 7#a77;,b71 7#a77;,c71 & 7#a77;,d7 7i7 ,9 g5]al ,a m]g]1 consolidation1 acquisition1 or transf] :i* is describ$ 9 clause 7ii7 %all n be treat$ z a m]g]1 consolidation1 acquisition1 or transf] describ$ 9 p>agraph 7#a77;,a71 7#a77;,b71 7#a77;,c71 or 7#a77;,d74 7ii7 ,transactions describ$ ,a m]g]1 consolidation1 acquisition1 or transf] is describ$ 9 ?is clause if-- 7,i7 su* m]g]1 consolidation1 acquisition1 or transf] is1 or is treat$ z1 ! acquisition ( ! /ock or assets ( ano!r corporation1 7,,ii7 su* m]g]1 consolidation1 acquisition1 or transf] is n except$ "u clause 7iii71 & 7,,iii7 ! comb9$ av]age annual gross receipts ( ! acquir+ corporation & ! acquir$ corporation = ! #c-taxable ye> p]iod :i* prec$es ! taxable ye> 9 :i* ! m]g]1 consolidation1 acquisition1 or transf] is complet$ exce$s #ejj1jjj1jjj4 7iii7 ,exceptions ,a m]g]1 consolidation1 acquisition1 or transf] is except$ "u ?is clause if-- 7,i7 ei!r ! acquir+ corporation or ! acquir$ corporation controls ! o!r imm$iately be=e 7&1 if bo? corporations cont9ue to exi/1 aft]7 ! m]g]1 consolidation1 acquisition1 or transf] 7z ! case may be71 7,,ii7 any o!r corporation controls bo? ! acquir+ corporation & ! acquir$ corporation imm$iately be=e 7&1 if bo? corporations cont9ue to exi/1 aft]7 ! m]g]1 consolidation1 acquisition1 or transf] 7z ! case may be71 or 7,,iii7 ei!r ! acquir+ corporation or ! acquir$ corporation meets ! gross receipts te/ ( section #ddh7;c77#a7 = ! taxable ye> 9 :i* ! m]g]1 consolidation1 acquisition1 or transf] is complet$4 7iv7 ,aggregation & o!r special rules ,rules simil> to ! rules ( p>agraphs 7#b7 & 7#c7 ( section #ddh7;c7 %all apply = purposes ( clause 7i77,,ii71 except t 7unless o!rwise provid$ by ! ,secret>y7 ! rules ( section #ddh7;c77#b7 %all n apply 9 det]m9+ ! av]age annual gross receipts ( ! acquir$ corporation4 7v7 ,inflation adju/m5t ,9 ! case ( any taxable ye> beg9n+ aft] #bjbf1 ! doll> am\nt 9 clause 7ii77,,iii7 %all be increas$ by an am\nt equal to-- 7,i7 su* doll> am\nt1 multipli$ by 7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* su* taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjbe = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,if any am\nt z increas$ "u ! prec$+ s5t5ce is n a multiple ( #a1jjj1jjj1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #a1jjj1jjj4 7vi7 ,regulations & guidance ,! ,secret>y may prescribe su* regulations & o!r guidance z are necess>y or appropriate to c>ry out1 & to prev5t ! abuse ( ! purposes (1 ?is subp>agraph1 includ+ rules-- 7,i7 to prev5t ! avoidance ( ! application ( ?is subp>agraph ?r\gh ! use ( a s]ies ( transactions design$ & execut$ z p>ts ( a unit>y plan1 & 7,,ii7 = ! nonapplication ( ! rules ( clause 7i7 :]e su* nonapplication is consi/5t ) ! purposes ( ?is subp>agraph4 4 7b7 ,transf]s to corporations controll$ by transf]ors ,section #cea is am5d$ by r$esignat+ subsection 7h7 z subsection 7i7 & by ins]t+ aft] subsection 7g7 ! foll[+ new subsection3 7h7 ,special rule ) respect to multiple transf]ors 7#a7 ,9 g5]al ,subsection 7a7 %all n apply to any transf] ( prop]ty by two or m p]sons :i* are corporations if ! comb9$ av]age annual gross receipts ( su* p]sons = ! #c-taxable ye> p]iod :i* prec$es ! taxable ye> ( ! transf] exce$s #ejj1jjj1jjj4 7#b7 ,exception ,clause 7i7 %all n apply if-- 7,a7 su* p]sons control ! corporation to :i* ! prop]ty is transf]r$ imm$iately be=e ! transf]1 7,b7 ano!r corporation controls all su* p]sons & ! corporation to :i* ! prop]ty is transf]r$ imm$iately be=e ! transf]1 or 7,c7 all su* p]sons meet ! gross receipts te/ ( section #ddh7;c77#a7 = ! taxable ye> 9 :i* ! transf] is made4 7#c7 ,aggregation & o!r special rules ,rules simil> to ! rules ( p>agraphs 7#b7 & 7#c7 ( section #ddh7;c7 %all apply = purposes ( p>agraph 7#a74 7#d7 ,inflation adju/m5t ,9 ! case ( any taxable ye> beg9n+ aft] #bjbf1 ! doll> am\nt 9 p>agraph 7#a7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* su* taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjbe = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,if any am\nt z increas$ "u ! prec$+ s5t5ce is n a multiple ( #a1jjj1jjj1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #a1jjj1jjj4 7#e7 ,regulations & guidance ,! ,secret>y may prescribe su* regulations & o!r guidance z are necess>y or appropriate to c>ry out1 & to prev5t ! abuse ( ! purposes (1 ?is subp>agraph1 includ+ rules-- 7,a7 to prev5t ! avoidance ( ! application ( ?is subsection ?r\gh ! use ( a s]ies ( transactions design$ & execut$ z p>ts ( a unit>y plan1 & 7,b7 = ! nonapplication ( ! rules ( p>agraph 7#a7 :]e su* nonapplication is consi/5t ) ! purposes ( ?is subsection4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to transf]s aft] ! date ( ! enactm5t ( ?is ,act4