[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4139 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4139

 To amend the Internal Revenue Code of 1986 to extend permanently the 
 100 percent exclusion of gain from the sale or exchange of qualified 
                         small business stock.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 5, 2012

  Mr. Daniel E. Lungren of California 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 extend permanently the 
 100 percent exclusion of gain from the sale or exchange of 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. PERMANENT FULL EXCLUSION APPLICABLE TO QUALIFIED SMALL 
              BUSINESS STOCK.

    (a) Permanent Full Exclusion.--
            (1) In general.--Subsection (a) of section 1202 of the 
        Internal Revenue Code of 1986 is amended to read as follows:
    ``(a) Exclusion.--In the case of a taxpayer other than a 
corporation, gross income shall not include 100 percent of any gain 
from the sale or exchange of qualified small business stock held for 
more than 5 years.''.
            (2) Conforming amendments.--
                    (A) The heading for section 1202 of such Code is 
                amended by striking ``partial exclusion'' and inserting 
                ``exclusion''.
                    (B) The item relating to section 1202 in the table 
                of sections for part I of subchapter P of chapter 1 of 
                such Code is amended by striking ``Partial exclusion'' 
                and inserting ``Exclusion''.
                    (C) Section 1223(13) of such Code is amended by 
                striking ``1202(a)(2),''.
    (b) Repeal of Minimum Tax Preference.--
            (1) In general.--Subsection (a) of section 57 of the 
        Internal Revenue Code of 1986 is amended by striking paragraph 
        (7).
            (2) Technical amendment.--Subclause (II) of section 
        53(d)(1)(B)(ii) of such Code is amended by striking ``, (5), 
        and (7)'' and inserting ``and (5)''.
    (c) Repeal of 28 Percent Capital Gains Rate on Qualified Small 
Business Stock.--
            (1) In general.--Subparagraph (A) of section 1(h)(4) of the 
        Internal Revenue Code of 1986 is amended to read as follows:
                    ``(A) collectibles gain, over''.
            (2) Conforming amendments.--
                    (A) Section 1(h) of such Code is amended by 
                striking paragraph (7).
                    (B)(i) Section 1(h) of such Code is amended by 
                redesignating paragraphs (8), (9), (10), (11), (12), 
                and (13) as paragraphs (7), (8), (9), (10), (11), and 
                (12), respectively.
                    (ii) Sections 163(d)(4)(B), 854(b)(5), 857(c)(2)(D) 
                of such Code are each amended by striking ``section 
                1(h)(11)(B)'' and inserting ``section 1(h)(10)(B)''.
                    (iii) The following sections of such Code are each 
                amended by striking ``section 1(h)(11)'' and inserting 
                ``section 1(h)(10)'':
                            (I) Section 301(f)(4).
                            (II) Section 306(a)(1)(D).
                            (III) Section 584(c).
                            (IV) Section 702(a)(5).
                            (V) Section 854(a).
                            (VI) Section 854(b)(2).
                    (iv) The heading of section 857(c)(2) is amended by 
                striking ``1(h)(11)'' and inserting ``1(h)(10)''.
    (d) Effective Date.--The amendments made by this section apply to 
stock acquired after December 31, 2011.
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