I 111th CONGRESS 2d Session H. R. 4877 IN THE HOUSE OF REPRESENTATIVES March 18, 2010 Mr. Polis of Colorado (for himself, Mr. Coffman of Colorado, Mr. Schauer, and Ms. Kosmas) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Internal Revenue Code of 1986 to encourage investment in certain industries by providing an exclusion from tax on certain gains.

1.

Short title

This Act may be cited as the Community Bank and Automotive Industry Recapitalization Act of 2010.

2.

Exclusion of capital gains on investments in certain industries

(a)

In general

Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139C the following new section:

139D.

Capital gains on investments in certain industries

(a)

In general

Gross income shall not include gain from the sale of qualified investment property if— (1)such property is acquired during the 18-month period beginning on the date of the enactment of this section, and (2)such property is held for more than 5 years. (b)

Qualified investment property

For purposes of this section— (1)

In general

The term qualified investment property means any— (A)stock in a specified domestic corporation acquired by the taxpayer at its original issue, and (B)any capital or profits interest in a specified domestic partnership acquired by the taxpayer from the partnership. (2)

Specified corporations and partnerships

(A)

In general

A corporation or partnership shall be treated as specified for purposes of paragraph (1) if such corporation or partnership is a community bank or an automotive company. (B)

Community bank

The term community bank means any community bank with less than $10,000,000,000 in assets which is established and regulated under the laws of the United States or any State, territory, or possession of the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands, and having significant operations in the United States, but excluding any central bank of, or institution owned by, a foreign government. (C)

Automotive company

The term automotive company means any person the majority of the gross receipts of which are derived from the research, design, production, or sale of personal or mass transportation vehicles or components for such vehicles. (c)

Ineligibility for TARP assistance

In any corporation or partnership issues stock or any capital or profits interest during the 18-month period beginning on the date of the enactment of this section which results in the aggregate fair market value of all such stock and interests (determined, in each case, as of the date of issuance) issued by such corporation or partnership during such period to equal or exceed $500,000, such corporation or partnership shall not be eligible to receive any assistance under title I of the Emergency Economic Stabilization Act of 2008 after the date of such issuance.

. (b)

Clerical amendment

The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139C the following new item: Sec. 139D. Capital gains on investments in certain industries. . (c)

Effective date

The amendments made by this section shall apply to property acquired after the date of the enactment of this section.