[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1823 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1823

  To amend the Internal Revenue Code of 1986 to modify the exclusion 
              relating to qualified small business stock.


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                   IN THE SENATE OF THE UNITED STATES

                           December 13, 2001

Ms. Collins (for herself and Mr. Carper) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to modify the exclusion 
              relating to qualified small business stock.

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

SECTION 1. MODIFICATIONS APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK.

    (a) Reduction in Holding Period.--
            (1) In general.--Section 1202(a) of the Internal Revenue 
        Code of 1986 is amended by striking ``5 years'' and inserting 
        ``3 years''.
            (2) Conforming amendments.--Subsections (g)(2)(A) and 
        (j)(1)(A) of section 1202 of such Code are each amended by 
        striking ``5 years'' and inserting ``3 years''.
    (b) Repeal of Minimum Tax Preference.--
            (1) In general.--Section 57(a) of the Internal Revenue Code 
        of 1986 (relating to items of tax preference) is amended by 
        striking paragraph (7).
            (2) Technical amendment.--Section 53(d)(1)(B)(ii)(II) of 
        such Code is amended by striking ``, (5), and (7)'' and 
        inserting ``and (5)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to stock issued after the date of the enactment of this Act.
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