[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1313 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1313

 To amend the Internal Revenue Code of 1986 to encourage investment in 
certain industries by providing an exclusion from tax on certain gains.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 2011

  Mr. Polis (for himself and Mr. Coffman of Colorado) 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 encourage investment in 
certain industries by providing an exclusion from tax on certain gains.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Bank and Automotive 
Industry Recapitalization Act of 2011''.

SEC. 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 
139D the following new section:

``SEC. 139E. 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.''.
    (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 139D the following new item:

``Sec. 139E. 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 Act.
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