S.Amdt. 208

SA 208. Mr. GRASSLEY submitted an amendment intended to be proposed
to amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus)
to the bill H.R. 1, making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal year ending September 30, 2009, and for other
purposes; which was ordered to lie on the table; as follows:

On page 489, strike lines 2 through 15 and insert the
following:

SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL
BUSINESS STOCK ACQUIRED IN 2009 AND 2010.

(a) In General.--Section 1202 is amended by redesignating
subsection (k) as subsection (l) and by inserting after
subsection (j) the following new subsection:
``(k) Special Rules for Stock Acquired in 2009 and 2010.--
In the case of qualified small business stock acquired after
the date of the enactment of the American Recovery and
Reinvestment Tax Act of 2009 and before January 1, 2011, the
following rules shall apply:
``(1) Increase exclusion.--Subsection (a)(1) shall be
applied by substituting `100 percent' for `50 percent'.
``(2) Increase aggregate asset limitation for qualified
small businesses.--Subsection (d) shall be applied by
substituting `$75,000,000' for `$50,000,000' each place it
appears.
``(3) Exclusion not treated as a tax preference.--Paragraph
(7) of section 57(a) shall not apply and section
53(d)(1)(B)(ii)(II) shall be applied by disregarding any item
of tax preference described in paragraph (7) of section
57(a).
``(4) Income not subject to 28 percent capital gains
rate.--Section 1(h)(4) shall be applied without regard to
subparagraph (A)(ii).''.
(b) Effective Date.--The amendments made by this section
shall apply to stock acquired after the date of the enactment
of this Act.
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