Home > 106th Congressional Bills > H.R. 1499 (ih) For the relief of Jean-Loup J. M. Chretien. [Introduced in House] ...

H.R. 1499 (ih) For the relief of Jean-Loup J. M. Chretien. [Introduced in House] ...

Web GovRecords.org

  1st Session
                                H. R. 1498

 To amend the Internal Revenue Code of 1986 to provide that the tax on 
recognized built-in gain of an S corporation shall not apply to amounts 
                      reinvested in the business.



                             March 27, 2003

 Mr. Ramstad (for himself, Mr. Crane, Mrs. Johnson of Connecticut, Mr. 
 Herger, Mr. Camp, Mr. Sam Johnson of Texas, Mr. English, Mr. Weller, 
Mr. McInnis, Mr. Foley, Mr. Brady of Texas, and Mr. Cox) introduced the 
 following bill; which was referred to the Committee on Ways and Means


                                 A BILL

 To amend the Internal Revenue Code of 1986 to provide that the tax on 
recognized built-in gain of an S corporation shall not apply to amounts 
                      reinvested in the business.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,


    This Act may be cited as the ``Small Business Opportunity and 
Growth Act of 2003''.


    (a) In General.--Section 1374 of the Internal Revenue Code of 1986 
(relating to tax imposed on certain built-in gains) is amended by 
redesignating subsection (e) as subsection (f) and by inserting after 
subsection (d) the following new subsection:
    ``(e) Exception for Reinvested Amounts.--
            ``(1) In general.--If an existing S corporation has a net 
        recognized built-in gain for any taxable year in the 
        recognition period (determined by taking into account only 
        assets held on March 27, 2003) and elects the application of 
        this subsection, the amount of such gain on which tax is 
        imposed by subsection (a) shall not exceed the amount equal to 
        the excess of--
                    ``(A) the amount realized on the disposition of 
                those assets that resulted in such gain, over
                    ``(B) the excess of--
                            ``(i) the aggregate qualified expenditures 
                        made by the S corporation during the 
                        nonrecognition period, over
                            ``(ii) the portion (if any) of such 
                        expenditures previously taken into account 
                        under this subsection.
            ``(2) Payment of tax.--If--
                    ``(A) the return of an S corporation shows that no 
                tax is required to be paid on an amount of recognized 
                built-in gain for any taxable year by reason of 
                paragraph (1) because the S corporation anticipates 
                making qualified expenditures during the succeeding 
                taxable year, and
                    ``(B) as of the close of such succeeding taxable 
                year, tax is required to be paid on such amount because 
                of the failure to make such expenditures,
        then the tax imposed by this chapter for the first taxable year 
        of the nonrecognition period shall be increased by 10 percent 
        of the increase in tax (determined without regard to this 
        paragraph) for such year by reason of the failure to make such 
            ``(3) Qualified expenditures.--For purposes of this 
        subsection, the term `qualified expenditures' means--
                    ``(A) amounts chargeable to capital account for 
                property used in a trade or business of the S 
                    ``(B) payments of principal and interest on pre-
                effective date debt of the S corporation, and
                    ``(C) amounts distributed to shareholders to the 
                extent such amounts do not exceed the aggregate of such 
                shareholders' tax imposed by this chapter (and State 
                and local taxes) on amounts attributable to the 
                disposition of those assets that resulted in such net 
                recognized built-in gain.
        Payments of principal as part of a refinancing of pre-effective 
        date debt shall not be taken into account under subparagraph 
            ``(4) Nonrecognition period.--For purposes of this 
        subsection, the term `nonrecognition period' means, with 
        respect to a taxable year for which an S corporation has a net 
        recognized built-in gain, such taxable year and the succeeding 
        taxable year.
            ``(5) Pre-effective date debt.--For purposes of paragraph 
        (2)(B), the term `pre-effective date debt' means--
                    ``(A) debt incurred before March 27, 2003, and
                    ``(B) debt incurred on or after such date to 
                refinance debt described in subparagraph (A) (or 
                refinanced indebtedness meeting the requirements of 
                this subparagraph) to the extent that (immediately 
                after the refinancing) the principal amount of the 
                indebtedness resulting from the refinancing does not 
                exceed the principal amount of the refinanced 
                indebtedness (immediately before the refinancing).
            ``(6) Anti-abuse rule.--Solely for purposes of determining 
        the treatment of distributions to shareholders under section 
        1368 during the recognition period--
                    ``(A) any increase in the accumulated adjustment 
                account and shareholder basis by reason of the 
                disposition of those assets that resulted in the net 
                recognized built-in gain shall not exceed the amounts 
                described in paragraph (2)(C), and
                    ``(B) any increase in such account and shareholder 
                basis which is not permitted under subparagraph (A) 
                shall occur immediately after the recognition period.
            ``(7) Existing s corporation.--The term `existing S 
        corporation' means any S corporation for which an election 
        under section 1362 is filed before March 27, 2003.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning during or after the calendar year which 
includes the date of the enactment of this Act but only with respect to 
built-in gain recognized after such date.

Pages: 1

Other Popular 106th Congressional Bills Documents:

1 S. 3051 (is) To amend the Federal Food, Drug, and Cosmetic Act to provide greater access to affordable pharmaceuticals. [Introduced in Senate] ...
2 H.R. 1696 (ih) To direct the Secretary of the Interior to convey the Griffith Project to the Southern Nevada Water Authority. [Introduced in House] ...
3 S.Con.Res. 71 (es) [Engrossed in Senate] ...
4 S. 3269 (is) To establish a Commission for the comprehensive study of voting procedures in Federal, State, and local elections, and for other purposes. [Introduced in Senate] ...
5 S. 939 (es) To correct spelling errors in the statutory designations of Hawaiian National Parks. [Engrossed in Senate] ...
6 H.R. 211 (enr) To designate the Federal building and United States courthouse located at 920 West Riverside Avenue in Spokane, Washington, as the ``Thomas S. Foley United States Courthouse'', and the plaza at the south entrance of such building and courth...
7 H.Con.Res. 308 (ih) Expressing the sense of the Congress that the Federal Government, including government officials outside of the United States, should not purchase any goods made by forced labor, and for other purposes. [Introduced in House] %%Filename...
8 H.R. 1162 (eh) To designate the bridge on United States Route 231 that crosses the Ohio River between Maceo, Kentucky, and Rockport, Indiana, as the ``William H. Natcher Bridge''. [Engrossed in House] ...
9 H.R. 1615 (rs) To amend the Wild and Scenic Rivers Act to extend the designation of a portion of the Lamprey River in New Hampshire as a recreational river to include an additional river segment. [Reported in Senate] ...
10 H.R. 5016 (rds) To redesignate the facility of the United States Postal Service located at 514 Express Center Road in Chicago, Illinois, as the ``J.T. Weeker Service Center''. [Received in the Senate] ...
11 H.J.Res. 73 (ih) Making further continuing appropriations for the fiscal year 2000, and for other purposes. [Introduced in House] ...
12 H.R. 4158 (ih) To limit the penalty that may be assessed under section 221 of title 13, United States Code, for not answering decennial census questions beyond those necessary for an enumeration of the population. [Introduced in House] ...
13 H.Res. 612 (eh) [Engrossed in House] ...
14 H.R. 1749 (ih) To designate Wilson Creek in Avery and Caldwell Counties, North Carolina, as a component of the National Wild and Scenic Rivers System. [Introduced in House] ...
15 S. 3073 (is) To amend titles V, XVIII, and XIX of the Social Security Act to promote smoking cessation under the medicare program, the medicaid program, and the maternal and child health program. [Introduced in Senate] ...
16 S. 266 (is) To amend the Clean Air Act to permit the exclusive application of California State regulations regarding reformulated gasoline in certain areas within the State. [Introduced in Senate] ...
17 S. 1389 (pcs) To provide additional trade benefits to certain beneficiary countries in the Caribbean. [Placed on Calendar Senate] ...
18 H.R. 5092 (ih) To provide for health care liability reform. [Introduced in House] ...
19 H.R. 4425 (enr) Making appropriations for military construction, family housing, and base realignment and closure for the Department of Defense for the fiscal year ending September 30, 2001, and for other purposes. [Enrolled bill] ...
20 H.R. 686 (rh) To designate a United States courthouse in Brownsville, Texas, as the ``Garza-Vela United States Courthouse''. [Reported in House] ...
21 S.Res. 229 (ats) Making certain majority appointments to certain Senate committees for the 106th Congress. [Agreed to Senate] ...
22 H.R. 2675 (ih) To amend the Workforce Investment Act of 1998 to provide increased flexibility for the transfer of within state allocations between adult and dislocated worker employment and training activities. [Introduced in House] ...
23 H.Res. 234 (rh) Waiving points of order against the conference report to accompany the [Reported in House] ...
24 H.R. 4063 (rfs) To establish the Rosie the Riveter/World War II Home Front National Historical Park in the State of California, and for other purposes. [Referred in Senate] ...
25 S. 1345 (is) To amend title 18, United States Code, to prohibit certain interstate conduct relating to exotic animals. [Introduced in Senate] ...
26 S. 2425 (is) To authorize the Bureau of Reclamation to participate in the planning, design, and construction of the Bend Feed Canal Pipeline Project, Oregon, and for other purposes. [Introduced in Senate] ...
27 H.R. 4872 (ih) To allow postal patrons to invest in vanishing wildlife protection programs through the voluntary purchase of specially issued postage stamps. [Introduced in House] ...
28 S. 3279 (is) To amend the Richard B. Russell National School Lunch Act to authorize the Secretary of Agriculture to carry out pilot projects to increase milk consumption and reduce the cost of milk served to school children. [Introduced in Senate] %%Filen...
29 S. 310 (is) To provide for a Dekalb-Peachtree Airport buyout initiative. [Introduced in Senate] ...
30 S. 3278 (is) To authorize funding for nanoscale science and engineering research and development at the Department of Energy for fiscal years 2002 through 2006. [Introduced in Senate] ...

Other Documents:

106th Congressional Bills Records and Documents

GovRecords.org presents information on various agencies of the United States Government. Even though all information is believed to be credible and accurate, no guarantees are made on the complete accuracy of our government records archive. Care should be taken to verify the information presented by responsible parties. Please see our reference page for congressional, presidential, and judicial branch contact information. GovRecords.org values visitor privacy. Please see the privacy page for more information.
House Rules:

104th House Rules
105th House Rules
106th House Rules

Congressional Bills:

104th Congressional Bills
105th Congressional Bills
106th Congressional Bills
107th Congressional Bills
108th Congressional Bills

Supreme Court Decisions

Supreme Court Decisions


1995 Privacy Act Documents
1997 Privacy Act Documents
1994 Unified Agenda
2004 Unified Agenda

Congressional Documents:

104th Congressional Documents
105th Congressional Documents
106th Congressional Documents
107th Congressional Documents
108th Congressional Documents

Congressional Directory:

105th Congressional Directory
106th Congressional Directory
107th Congressional Directory
108th Congressional Directory

Public Laws:

104th Congressional Public Laws
105th Congressional Public Laws
106th Congressional Public Laws
107th Congressional Public Laws
108th Congressional Public Laws

Presidential Records

1994 Presidential Documents
1995 Presidential Documents
1996 Presidential Documents
1997 Presidential Documents
1998 Presidential Documents
1999 Presidential Documents
2000 Presidential Documents
2001 Presidential Documents
2002 Presidential Documents
2003 Presidential Documents
2004 Presidential Documents

Home Executive Judicial Legislative Additional Reference About Privacy