Community Bank and Automotive Industry Recapitalization Act of 2010

Community Bank and Automotive Industry Recapitalization Act of 2010 - Amends the Internal Revenue Code to exclude from gross income gain from the sale of qualified investment property acquired within 18 months after the enactment of this Act and held for more than five years. Defines "qualified investment property" as original issue stock in a community bank with less than $10 billion in assets or an automotive company.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4877 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4877

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


_______________________________________________________________________


                    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.

    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 2010''.

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 
139C the following new section:

``SEC. 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.
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