I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Community Bank and 

5 Automotive Industry Recapitalization Act of 2010’’. 


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1 SEC. 2. EXCLUSION OF CAPITAL GAINS ON INVESTMENTS 

2 IN CERTAIN INDUSTRIES. 

3 (a) IN GENERAL.—Part III of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 is amended 

5 by inserting after section 139C the following new section: 

6 ‘‘SEC. 139D. CAPITAL GAINS ON INVESTMENTS IN CERTAIN 

7 INDUSTRIES. 

8 ‘‘(a) IN GENERAL.—Gross income shall not include 

9 gain from the sale of qualified investment property if— 

10 ‘‘(1) such property is acquired during the 18- 

11 month period beginning on the date of the enact12 ment of this section, and 

13 ‘‘(2) such property is held for more than 5 

14 years. 

15 ‘‘(b) QUALIFIED INVESTMENT PROPERTY.—For pur16 poses of this section— 

17 ‘‘(1) IN GENERAL.—The term ‘qualified invest18 ment property’ means any— 

19 ‘‘(A) stock in a specified domestic corpora20 tion acquired by the taxpayer at its original 

21 issue, and 

22 ‘‘(B) any capital or profits interest in a 

23 specified domestic partnership acquired by the 

24 taxpayer from the partnership. 

25 ‘‘(2) SPECIFIED CORPORATIONS AND PARTNER26 SHIPS.— 


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1 ‘‘(A) IN GENERAL.—A corporation or part2 nership shall be treated as specified for pur3 poses of paragraph (1) if such corporation or 

4 partnership is a community bank or an auto5 motive company. 

6 ‘‘(B) COMMUNITY BANK.—The term ‘com7 munity bank’ means any community bank with 

8 less than $10,000,000,000 in assets which is 

9 established and regulated under the laws of the 

10 United States or any State, territory, or posses11 sion of the United States, the District of Co12 lumbia, Commonwealth of Puerto Rico, Com13 monwealth of Northern Mariana Islands, Guam, 

14 American Samoa, or the United States Virgin 

15 Islands, and having significant operations in the 

16 United States, but excluding any central bank 

17 of, or institution owned by, a foreign govern18 ment. 

19 ‘‘(C) AUTOMOTIVE COMPANY.—The term 

20 ‘automotive company’ means any person the 

21 majority of the gross receipts of which are de22 rived from the research, design, production, or 

23 sale of personal or mass transportation vehicles 

24 or components for such vehicles. 


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1 ‘‘(c) INELIGIBILITY FOR TARP ASSISTANCE.—In 

2 any corporation or partnership issues stock or any capital 

3 or profits interest during the 18-month period beginning 

4 on the date of the enactment of this section which results 

5 in the aggregate fair market value of all such stock and 

6 interests (determined, in each case, as of the date of 

7 issuance) issued by such corporation or partnership during 

8 such period to equal or exceed $500,000, such corporation 

9 or partnership shall not be eligible to receive any assist10 ance under title I of the Emergency Economic Stabiliza11 tion Act of 2008 after the date of such issuance.’’. 

12 (b) CLERICAL AMENDMENT.—The table of sections 

13 for part III of subchapter B of chapter 1 of such Code 

14 is amended by inserting after the item relating to section 

15 139C the following new item: 

‘‘Sec. 139D. Capital gains on investments in certain industries.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to property acquired after the date 

18 of the enactment of this section. 

Æ 


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