To amend the Internal Revenue Code of 1986 to provide a temporary exclusion of 100 percent of the gain on the sale or exchange of certain small business stock.

Amends the Internal Revenue Code to: (1) increase from 50 to 100% the exclusion from gross income allowed for gain from the sale or exchange of qualified small business stock that is acquired during 2010; and (2) exempt gain from such stock in calculating the alternative minimum tax.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4236 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4236

   To amend the Internal Revenue Code of 1986 to provide a temporary 
exclusion of 100 percent of the gain on the sale or exchange of certain 
                         small business stock.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 8, 2009

  Mr. Levin 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 provide a temporary 
exclusion of 100 percent of the gain on the sale or exchange of certain 
                         small business stock.

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

SECTION 1. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN SMALL 
              BUSINESS STOCK.

    (a) In General.--Subsection (a) of section 1202 of the Internal 
Revenue Code of 1986 (relating partial exclusion for gain from certain 
small business stock) is amended by adding at the end the following new 
paragraph:
            ``(4) 100 exclusion for stock acquired during 2010.--In the 
        case of qualified small business stock acquired during 2010--
                    ``(A) paragraph (1) shall be applied by 
                substituting `100 percent' for `50 percent',
                    ``(B) paragraph (2) shall not apply, and
                    ``(C) paragraph (7) of section 57(a) shall not 
                apply.''.
    (b) Conforming Amendment.--Paragraph (3) of section 1202 (a) of 
such Code is amended--
            (1) by striking ``and 2010'' in the heading, and
            (2) by striking ``January 1, 2011'' and inserting ``January 
        1, 2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to stock acquired after December 31, 2009.
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