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 H.R. 4047 (eh) To amend title 18 of the United States Code to provide life imprisonment for repeat offenders who commit sex offenses against children. [Engrossed in House] ...
2 S.Res. 343 (is) Expressing the sense of the Senate that the International Red Cross and Red Crescent Movement should recognize and admit to full membership Israel's Magen David Adom Society with its emblem, the Red Shield of David. [Introduced in Senate]...
3 S. 50 (is) To improve options for excellence in education. [Introduced in Senate] ...
4 S. 1260 (rs) To make technical corrections in title 17, United States Code, and other laws. [Reported in Senate] ...
5 H.R. 3432 (ih) To direct the Minerals Management Service to grant the State of [Introduced in House] ...
6 H.R. 1102 (rs) To provide for pension reform, and for other purposes. [Reported in Senate] ...
7 S. 2347 (is) To provide grants to partnerships to establish and carry out information technology training programs and to provide incentives for educators to obtain information technology certification, and for other purposes. [Introduced in Senate] %%Fil...
8 H.R. 20 (ih) To authorize the Secretary of the Interior to construct and operate a visitor center for the Upper Delaware Scenic and Recreational River on land owned by the State of New York. [Introduced in House] ...
9 S. 1097 (is) To offset the spending contained in the fiscal year 1999 emergency supplemental appropriations bill in order to protect the surpluses of the social security trust funds. [Introduced in Senate] ...
10 S. 3214 (is) To amend the Assets for Independence Act (Title IV of the Community Opportunities, Accountability, and Training and Educational Services Act of 1998) to enhance program flexibility, and for other purposes. [Introduced in Senate] ...
11 S. 1818 (is) To amend title II of the Elementary and Secondary Education Act of 1965 to provide grants for master teacher programs. [Introduced in Senate] ...
12 H.R. 5061 (ih) To provide for the appointment of a guardian ad litem to protect the interests under Federal immigration law of certain alien minor children present in the United States without a parent or other legal guardian. [Introduced in House] %%File...
13 H.Con.Res. 351 (enr) [Enrolled bill] ...
14 H.R. 5115 (ih) To amend title 5, United States Code, to make the Federal Employees Health Benefits Program available to the general public, and for other purposes. [Introduced in House] ...
15 S.Con.Res. 138 (is) Expressing the sense of Congress that a day of peace and sharing should be established at the beginning of each year. [Introduced in Senate] ...
16 S. 2799 (is) To allow a deduction for Federal, State, and local taxes on gasoline, diesel fuel, or other motor fuel purchased by consumers between July 1, 2000, and December 31, 2000. [Introduced in Senate] ...
17 S. 3051 (is) To amend the Federal Food, Drug, and Cosmetic Act to provide greater access to affordable pharmaceuticals. [Introduced in Senate] ...
18 S. 3032 (is) To reauthorize the Junior Duck Stamp Conservation and Design Program Act of 1994, and for other purposes. [Introduced in Senate] ...
19 S. 1206 (pcs) Making appropriations for the Legislative Branch for the fiscal year ending September 30, 2000, and for other purposes. [Placed on Calendar Senate] ...
20 S. 398 (is) To require the Secretary of the Treasury to mint coins in commemoration of Native American history and culture. [Introduced in Senate] ...
21 H.R. 208 (eh) To amend title 5, United States Code, to allow for the contribution of certain rollover distributions to accounts in the Thrift Savings Plan, to eliminate certain waiting-period requirements for participating in the Thrift Savings Plan, and...
22 S. 1456 (is) For the relief of Rocco A. Trecosta of Fort Lauderdale, Florida. [Introduced in Senate] ...
23 S.Con.Res. 127 (is) Expressing the sense of the Congress that the Parthenon Marbles should be returned to Greece. [Introduced in Senate] ...
24 S. 2869 (es) To protect religious liberty, and for other purposes. [Engrossed in Senate] ...
25 H.Res. 157 (ih) Expressing the sense of the House of Representatives in support of America's teachers. [Introduced in House] ...
26 H.Res. 652 (eh) [Engrossed in House] ...
27 H.R. 2588 (ih) To amend the Omnibus Crime Control and Safe Streets Act of 1968 to provide that certain employees of Federal, State, and local emergency management and civil defense agencies may be eligible for certain public safety officers death benefits...
28 H.Res. 562 (ath) Providing for the concurrence by the House, with amendments, in the Senate amendment to H.R. 1167. [Agreed to House] ...
29 H.R. 664 (ih) To provide for substantial reductions in the price of prescription drugs for Medicare beneficiaries. [Introduced in House] ...
30 H.R. 5179 (ih) To amend the Fair Labor Standards Act of 1938 to limit the number of overtime hours of licensed health care employees. [Introduced in House] ...

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