[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8985 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 8985

To amend the Internal Revenue Code of 1986 to make an exception to the 
 100 shareholder S corporation limitation in the case of shareholders 
whose shares were acquired through certain crowdfunding or small public 
                               offerings.


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                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2020

 Mr. Hill of Arkansas (for himself and Mr. Schweikert) introduced the 
 following bill; which was referred to the Committee on Ways and Means

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to make an exception to the 
 100 shareholder S corporation limitation in the case of shareholders 
whose shares were acquired through certain crowdfunding or small public 
                               offerings.

    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 ``S Corp Access to Crowdfunding Act''.

SEC. 2. EXCEPTION TO S CORPORATION SHAREHOLDER LIMITATION IN CASE OF 
              CROWDFUNDING AND SMALL PUBLIC OFFERINGS.

    (a) In General.--Section 1361(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(7) Treatment of shares acquired through crowdfunding and 
        small public offerings.--The number of shareholders of the 
        corporation shall be determined under subsection (b)(1)(A) 
        without regard to any individual who has only acquired shares 
        in the corporation through--
                    ``(A) a public offering that meets the terms and 
                conditions set forth in Regulation A promulgated by the 
                Securities and Exchange Commission (17 C.F.R. 230.251 
                et seq.), or
                    ``(B) one or more transactions described in section 
                4(a)(6) of the Securities Act of 1933 (15 U.S.C. 
                77d(a)(6)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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