I 
114TH CONGRESS 
1ST SESSION H. R. 2844 
To amend the Employee Retirement Income Security Act of 1974 and the 
Internal Revenue Code of 1986 to modify certain provisions relating 
to multiemployer pensions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 19, 2015 
Ms. KAPTUR (for herself, Mr. RYAN of Ohio, Mr. ELLISON, Ms. SCHAKOWSKY, 
Mr. BRENDAN F. BOYLE of Pennsylvania, Mr. HONDA, and Ms. SLAUGH-
TER) introduced the following bill; which was referred to the Committee 
on Education and the Workforce, and in addition to the Committees on 
Ways and Means and the Judiciary, for a period to be subsequently de-
termined 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 Employee Retirement Income Security Act 
of 1974 and the Internal Revenue Code of 1986 to 
modify certain provisions relating to multiemployer pen-
sions, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Keep Our Pension 
Promises Act’’. 
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SEC. 2. RESTORING ANTI-CUTBACK PROVISIONS. 
Section 201 of the Multiemployer Pension Reform 
Act of 2014 (division O of Public Law 113–235) and the 
amendments made by such section are repealed, and the 
Employee Retirement Income Security Act of 1974 and 
the Internal Revenue Code of 1986 shall be applied as if 
such section and amendments had never been enacted. 
SEC. 3. PARTITIONS OF ELIGIBLE MULTIEMPLOYER PLANS. 
(a) IN GENERAL.—Section 4233 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1413), 
as amended by section 122 of the Multiemployer Pension 
Reform Act of 2014 (division O of Public Law 113–235), 
is amended to read as follows: 
‘‘SEC. 4233. PARTITIONS OF ELIGIBLE MULTIEMPLOYER 
PLANS. 
‘‘(a)(1) Upon the application by the plan sponsor of 
an eligible multiemployer plan for a partition of the plan, 
the corporation may order a partition of the plan in ac-
cordance with this section. The corporation shall make a 
determination regarding the application, in accordance 
with regulations promulgated by the corporation, not later 
than 270 days after— 
‘‘(A) the date such application was filed; or 
‘‘(B) if later, the date such application was 
completed. 
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‘‘(2) At least 14 days before submitting an applica-
tion for partition of a plan under paragraph (1), the plan 
sponsor of the plan shall notify all participants and bene-
ficiaries of such application, in the form and manner pre-
scribed by regulations issued by the corporation. 
‘‘(b) For purposes of this section, a multiemployer 
plan is an eligible multiemployer plan if— 
‘‘(1) the plan is in critical status and is pro-
jected to become insolvent within the meaning of 
section 4245— 
‘‘(A) during the current plan year or any 
of the 14 succeeding plan years; or 
‘‘(B) during the current plan year or any 
of the 19 succeeding plan years, if the plan has 
a ratio of inactive participants to active partici-
pants that exceeds 2 to 1 and the funded per-
centage of the plan is less than 80 percent; 
‘‘(2) the corporation determines, after consulta-
tion with the Participant and Plan Sponsor Advo-
cate selected under section 4004, that the plan spon-
sor has taken (or is taking concurrently with an ap-
plication for partition) all reasonable measures de-
scribed in section 432(e)(3)(A) of the Internal Rev-
enue Code of 1986, and has made (or is making) 
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benefit adjustments under section 432(e)(8) of such 
Code to reduce the risk of insolvency; 
‘‘(3) 20 percent or more of the amount by 
which the liabilities of the plan exceed the value of 
plan assets is attributable to the service of partici-
pants whose employers— 
‘‘(A) withdrew from the plan prior to the 
date of enactment of the Keep Our Pension 
Promises Act; and 
‘‘(B) failed to pay (or are delinquent with 
respect to paying) the full amount of the em-
ployer’s withdrawal liability under section 
4201(b)(1) or as otherwise determined under 
an agreement with the plan; 
‘‘(4) the corporation reasonably expects that— 
‘‘(A) a partition of the plan will reduce the 
corporation’s expected long-term loss with re-
spect to the plan; and 
‘‘(B) a partition of the plan is necessary 
for the plan to remain or become solvent; and 
‘‘(5) the corporation certifies to Congress that 
after partition the corporation will continue to have 
the ability to meet existing financial assistance obli-
gations to other plans (including any liabilities asso-
ciated with multiemployer plans that are insolvent or 
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that are projected to become insolvent within 10 
years). 
‘‘(c)(1) A partition under this section shall consist of 
a transfer to the plan created by the partition order of 
benefits to which eligible participants and beneficiaries 
were entitled under the plan that was partitioned, in an 
amount not to exceed the amount that would be guaran-
teed under section 4022A if the plan were insolvent as 
of the date of the partition order. 
‘‘(2) The corporation’s partition order shall provide 
for an annual transfer by the corporation to the plan cre-
ated by the partition order of an amount equal to the year-
ly benefits that would be guaranteed under section 4022A 
to the eligible participants and beneficiaries if the plan 
were insolvent as of the date of the partition order. 
‘‘(3)(A) Where practicable, the initial transfer in ac-
cordance with paragraph (2) shall be completed at least 
60 days prior to the plan year that immediately follows 
the partition start date. The partition order shall require 
that the initial transfer be sufficient to satisfy the guaran-
teed benefits in the first plan year of the partitioned plan. 
‘‘(B) Subsequent transfers in accordance with para-
graph (2) shall be completed at least 60 days prior to the 
first day of each succeeding plan year. 
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‘‘(d)(1)(A) The plan created by the partition order 
is a successor plan to which section 4022A applies. 
‘‘(B) At the discretion of the plan sponsor, the plan 
created by the partition order may remain a part of the 
plan that was partitioned or be maintained as a separate 
plan. 
‘‘(2)(A) The plan sponsor and the administrator of 
an eligible multiemployer plan prior to the partition shall 
be the plan sponsor and the administrator, respectively, 
of the plan created by the partition order, and shall adopt 
reasonable procedures to reduce administrative expenses 
and to coordinate benefit payments and communications 
with the participants and beneficiaries in the plan created 
by the partition order. 
‘‘(B) Benefit payments equal to the amount of an eli-
gible participant or beneficiary’s guaranteed benefits shall 
be paid to such participant or beneficiary and may be— 
‘‘(i) paid separately by the plan created by the 
partition order; or 
‘‘(ii) paid in a single, monthly payment by the 
plan that was partitioned. 
‘‘(3) In the event an employer withdraws from the 
plan that was partitioned, withdrawal liability shall be 
computed under section 4201 with respect to both the plan 
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(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to plan years begin-
ning after the date of enactment of this Act. 
(c) TRANSFERS TO LEGACY FUND.—The Secretary 
of the Treasury shall from time to time transfer from the 
general fund of the Treasury to the legacy fund estab-
lished under section 4233(f)(1) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1413(f)(1)) 
(as amended by subsection (a)) amounts equal to the in-
crease in revenues to the Treasury by reason of the 
amendments made by sections 6 and 7 of this Act. 
(d) TRANSFERS BETWEEN FUNDS OF THE PBGC.— 
Section 4005 of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1305) is amended by adding at 
the end the following: 
‘‘(i)(1) An eighth fund is established under section 
4233(f) and credited with the amounts described in sec-
tion 3(c) of the Keep Our Pension Promises Act. 
‘‘(2) Notwithstanding subsection (g), the corporation 
may transfer amounts into the legacy fund established 
under section 4233(f)(1) from other funds established 
under this section, as the corporation determines appro-
priate.’’. 
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SEC. 4. EMPLOYER WITHDRAWALS RELATING TO MULTIEM-
PLOYER PLANS. 
The matter preceding paragraph (1) of section 
4225(b) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1405(b)) is amended by inserting ‘‘, 
including an employer undergoing liquidation under chap-
ter 7 of title 11, United States Code, or similar provisions 
of State law,’’ after ‘‘dissolution,’’. 
SEC. 5. PRIORITIES OF CLAIMS IN BANKRUPTCY. 
(a) IN GENERAL.—Section 507(a) of title 11, United 
States Code is amended— 
(1) by redesignating paragraphs (1) through 10 
as paragraphs (2) through (11), respectively; 
(2) by inserting before paragraph (2) (as redes-
ignated) the following: 
‘‘(1) First, withdrawal liability determined 
under part 1 of subtitle E of title IV of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1381 et seq.).’’; 
(3) in the matter preceding subparagraph (A) 
of paragraph (2) (as redesignated), by striking 
‘‘First:’’ and inserting ‘‘Second:’’; 
(4) in paragraph (3) (as redesignated), by strik-
ing ‘‘Second,’’ and inserting ‘‘Third,’’; 
(5) in paragraph (4) (as redesignated), by strik-
ing ‘‘Third,’’ and inserting ‘‘Fourth,’’; 
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(6) in the matter preceding subparagraph (A) 
of paragraph (5) (as redesignated), by striking 
‘‘Fourth,’’ and inserting ‘‘Fifth,’’; 
(7) in the matter preceding subparagraph (A) 
of paragraph (6) (as redesignated), by striking 
‘‘Fifth,’’ and inserting ‘‘Sixth,’’; 
(8) in the matter preceding subparagraph (A) 
of paragraph (7) (as redesignated), by striking 
‘‘Sixth,’’ and inserting ‘‘Seventh,’’; 
(9) in paragraph (8) (as redesignated), by strik-
ing ‘‘Seventh,’’ and inserting ‘‘Eighth,’’; 
(10) in the matter preceding subparagraph (A) 
of paragraph (9) (as redesignated), by striking 
‘‘Eighth,’’ and inserting ‘‘Ninth,’’; 
(11) in paragraph (10) (as redesignated), by 
striking ‘‘Ninth,’’ and inserting ‘‘Tenth,’’; and 
(12) in paragraph (11) (as redesignated), by 
striking ‘‘Tenth,’’ and inserting ‘‘Eleventh,’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Section 502(i) of title 11, United States 
Code, is amended by striking ‘‘section 507(a)(8)’’ 
and inserting ‘‘section 507(a)(9)’’. 
(2) Section 503(b)(1)(B)(i) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(8)’’ and inserting ‘‘section 507(a)(9)’’. 
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(3) Section 507(d) of title 11, United States 
Code, is amended by striking ‘‘(a)(1), (a)(4), (a)(5), 
(a)(6), (a)(7), (a)(8), or (a)(9)’’ and inserting 
‘‘(a)(2), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9), or 
(a)(10)’’. 
(4) Section 523(A) of title 11, United States 
Code, is amended by striking ‘‘section 507(a)(3) or 
507(a)(8)’’ and inserting ‘‘section 507(a)(4) or 
507(a)(9)’’. 
(5) Section 724 of title 11, United States Code, 
is amended— 
(A) in subsection (b)(2), by striking ‘‘sec-
tion 507(a)(1)(C) or 507(a)(2)’’ and inserting 
‘‘section 507(a)(2)(C) or 507(a)(3)’’; and 
(B) in subsection (f)— 
(i) in paragraph (1), by striking ‘‘sec-
tion 507(a)(4)’’ and inserting ‘‘section 
507(a)(5)’’; and 
(ii) in paragraph (2), by striking ‘‘sec-
tion 507(a)(5)’’ and inserting ‘‘section 
507(a)(6)’’. 
(6) Section 726(b) of title 11, United States 
Code, is amended by striking ‘‘paragraph (1), (2), 
(3), (4), (5), (6), (7), (8), (9), or (10) of section 
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507(a)’’ and inserting ‘‘paragraphs (2) through (11) 
of section 507(a)’’. 
(7) Section 752(a) of title 11, United States 
Code, is amended by striking ‘‘section 507(a)(2)’’ 
and inserting ‘‘section 507(a)(3)’’. 
(8) Section 766 of title 11, United States Code, 
is amended— 
(A) in subsection (h), by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’; 
and 
(B) in subsection (i)— 
(i) in paragraph (1), by striking ‘‘sec-
tion 507(a)(2)’’ and inserting ‘‘section 
507(a)(3)’’; and 
(ii) in paragraph (2), by striking ‘‘sec-
tion 507(a)(2)’’ and inserting ‘‘section 
507(a)(3)’’. 
(9) Section 901 of title 11, United States Code, 
is amended by striking ‘‘507(a)(2)’’ and inserting 
‘‘507(a)(3)’’. 
(10) Section 943(b)(5) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’. 
(11) Section 1123(a)(1) of title 11, United 
States Code, is amended by striking ‘‘section 
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507(a)(2), 507(a)(3), or 507(a)(8)’’ and inserting 
‘‘section 507(a)(3), 507(a)(4), or 507(a)(9)’’. 
(12) Section 1129(a)(9) of title 11, United 
States Code, is amended— 
(A) in subparagraph (A), by striking ‘‘sec-
tion 507(a)(3) or 507(a)(4)’’ and inserting 
‘‘section 507(a)(4) or 507(a)(5)’’; 
(B) in the matter preceding clause (i) of 
subparagraph 
(B), 
by 
striking 
‘‘section 
507(a)(1), 507(a)(4), 507(a)(5), 507(a)(6), or 
507(a)(7)’’ and inserting ‘‘section 507(a)(2), 
507(a)(5), 507(a)(6), 507(a)(7), or 507(a)(8)’’; 
(C) in the matter preceding clause (i) of 
subparagraph 
(C), 
by 
striking 
‘‘section 
507(a)(8)’’ and inserting ‘‘section 507(a)(9)’’; 
and 
(D) in subparagraph (D), by striking ‘‘sec-
tion 
507(a)(8)’’ 
and 
inserting 
‘‘section 
507(a)(9)’’. 
(13) Section 1222(a)(4) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(1)(B)’’ and inserting ‘‘507(a)(2)(B)’’. 
(14) Section 1226(b)(1) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’. 
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(15) Section 1322(a)(4) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(1)(B)’’ and inserting ‘‘section 507(a)(2)(B)’’. 
(16) Section 1326(b)(1) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(2)’’ and inserting ‘‘section 507(a)(3)’’. 
(17) Section 1328(a)(2) of title 11, United 
States Code, is amended by striking ‘‘section 
507(a)(8)(C)’’ and inserting ‘‘section 507(a)(9)(C)’’. 
SEC. 6. LIMITATION OF NONRECOGNITION OF LIKE-KIND 
EXCHANGES. 
(a) IN GENERAL.—Paragraph (2) of section 1031(a) 
of the Internal Revenue Code of 1986 is amended— 
(1) by redesignating subparagraphs (A), (B), 
(C), (D), (E), and (F) as clauses (i), (ii), (iii), (iv), 
(v), and (vi), and by moving such clauses 2 ems to 
the right, 
(2) by moving the flush language after the first 
sentence 2 ems to the right, 
(3) by striking ‘‘(2) EXCEPTION.—This sub-
section’’ and inserting ‘‘(2) EXCEPTIONS.— 
‘‘(A) EXCLUDED
PROPERTY.—This sub-
section’’, and 
(4) by adding at the end the following new sub-
paragraph: 
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‘‘(B) 
DOLLAR
LIMITATION
FOR
EX-
CHANGES OF REAL PROPERTY.— 
‘‘(i) IN
GENERAL.—Paragraph (1) 
shall not apply so much of the gain which, 
but for such paragraph, would be recog-
nized by the taxpayer with respect to real 
property exchanged during the taxable year 
as exceeds $1,000,000. 
‘‘(ii) SPECIAL RULES FOR PARTNER-
SHIPS AND S-CORPORATIONS.—In the case 
of a pass-through entity, clause (i) shall be 
applied at both the entity and at the part-
ner or owner level. 
‘‘(iii) 
AGGREGATION
RULES.—For 
purposes of this subparagraph— 
‘‘(I) FAMILY MEMBERS.—Individ-
uals who are spouses or who bear any 
of the relationships described in sec-
tion 152(d)(2) to each other shall be 
treated as 1 taxpayer (without regard 
to whether spouses file a joint return). 
‘‘(II) CORPORATIONS AND OTHER 
ENTITIES.—All persons treated as a 
single employer under subsection (a) 
or (b) of section 52 or subsection (m) 
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or (o) of section 414 shall be treated 
as 1 person. 
‘‘(iv) ADJUSTMENT FOR INFLATION.— 
In the case of exchanges completed in a 
taxable year beginning after December 31, 
2016, the $1,000,000 amount in clause (i) 
shall be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins, determined by sub-
stituting ‘calendar year 2015’ for ‘cal-
endar year 1992’ in subparagraph (B) 
thereof. 
If any amount as adjusted under the pre-
ceding sentence is not a multiple of 
$1,000, such amount shall be rounded to 
the nearest multiple of $1,000.’’. 
(b) EXCLUSION OF ART AND COLLECTIBLES.—Sub-
paragraph (A) of section 1031(a)(2) of the Internal Rev-
enue Code of 1986, as amended by subsection (a), is 
amended— 
(1) by striking ‘‘or’’ at the end of clause (v), 
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(2) by striking the period at the end of clause 
(vi) and inserting ‘‘, or’’, and 
(3) by inserting after clause (vi) the following 
new clause: 
‘‘(vii) any collectible (within the mean-
ing of section 408(m), without regard to 
paragraph (3) thereof).’’. 
(c) REGULATORY AUTHORITY.—Subsection (f) of 
section 1031 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new para-
graph: 
‘‘(5) RULES
RELATING
TO
DOLLAR
LIMITA-
TION.—The Secretary shall prescribe such guidance 
as is necessary for applying subsection (a)(2)(B)(i) 
in the case of the exchange of multiple pieces of real 
property by related persons.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Subsection (b) of section 1031 of the Inter-
nal Revenue Code of 1986 is amended— 
(A) by striking ‘‘IN KIND.—If an ex-
change’’ and inserting ‘‘IN KIND.— 
‘‘(1) IN GENERAL.—If an exchange’’, and 
(B) by adding at the end the following new 
paragraph: 
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‘‘(2) 
COORDINATION
WITH
SUBSECTION 
(A)(2)(B).—In the case of an exchange to which para-
graph (1) applies— 
‘‘(A) paragraph (1) shall be applied before 
the application of subsection (a)(2)(B), and 
‘‘(B) subsection (a)(2)(B) shall be ap-
plied— 
‘‘(i) as if such exchange were within 
the provisions of subsection (a), and 
‘‘(ii) by increasing the basis of the 
property disposed of by the taxpayer in 
such exchange by the amount of any gain 
determined under paragraph (1).’’. 
(2) Subsection (d) of section 1031 of such Code 
is amended by striking ‘‘in the amount of gain’’ and 
inserting ‘‘in the amount of gain (including any gain 
recognized by reason of subsection (a)(2)(B)(i))’’. 
(3) Subsection (i) of section 1031 of such Code 
is amended by striking ‘‘(a)(2)(B)’’ and inserting 
‘‘(a)(2)(A)(ii)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to exchanges completed in taxable 
years beginning after December 31, 2015. 
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SEC. 7. VALUATION RULES FOR CERTAIN TRANSFERS OF 
NONBUSINESS ASSETS; LIMITATION ON MI-
NORITY DISCOUNTS. 
(a) IN GENERAL.—Section 2031 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(d) as subsection (f) and by inserting after subsection (c) 
the following new subsections: 
‘‘(d) VALUATION RULES FOR CERTAIN TRANSFERS 
OF NONBUSINESS ASSETS.—For purposes of this chapter 
and chapter 12— 
‘‘(1) IN GENERAL.—In the case of the transfer 
of any interest in an entity other than an interest 
which is actively traded (within the meaning of sec-
tion 1092)— 
‘‘(A) the value of any nonbusiness assets 
held by the entity with respect to such interest 
shall be determined as if the transferor had 
transferred such assets directly to the trans-
feree (and no valuation discount shall be al-
lowed with respect to such nonbusiness assets), 
and 
‘‘(B) such nonbusiness assets shall not be 
taken into account in determining the value of 
the interest in the entity. 
‘‘(2) NONBUSINESS ASSETS.—For purposes of 
this subsection— 
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‘‘(A) IN
GENERAL.—The term ‘nonbusi-
ness asset’ means any asset which is not used 
in the active conduct of 1 or more trades or 
businesses. 
‘‘(B) EXCEPTION
FOR
CERTAIN
PASSIVE 
ASSETS.—Except as provided in subparagraph 
(C), a passive asset shall not be treated for pur-
poses of subparagraph (A) as used in the active 
conduct of a trade or business unless— 
‘‘(i) the asset is property described in 
paragraph (1) or (4) of section 1221(a) or 
is a hedge with respect to such property, 
or 
‘‘(ii) the asset is real property used in 
the active conduct of 1 or more real prop-
erty trades or businesses (within the mean-
ing of section 469(c)(7)(C)) in which the 
transferor materially participates and with 
respect to which the transferor meets the 
requirements of section 469(c)(7)(B)(ii). 
For purposes of clause (ii), material participa-
tion shall be determined under the rules of sec-
tion 469(h), except that section 469(h)(3) shall 
be applied without regard to the limitation to 
farming activity. 
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‘‘(C) EXCEPTION
FOR
WORKING
CAP-
ITAL.—Any asset (including a passive asset) 
which is held as a part of the reasonably re-
quired working capital needs of a trade or busi-
ness shall be treated as used in the active con-
duct of a trade or business. 
‘‘(3) PASSIVE
ASSET.—For purposes of this 
subsection, the term ‘passive asset’ means any— 
‘‘(A) cash or cash equivalents, 
‘‘(B) except to the extent provided by the 
Secretary, stock in a corporation or any other 
equity, profits, or capital interest in any entity, 
‘‘(C) evidence of indebtedness, option, for-
ward or futures contract, notional principal con-
tract, or derivative, 
‘‘(D) asset described in clause (iii), (iv), or 
(v) of section 351(e)(1)(B), 
‘‘(E) annuity, 
‘‘(F) real property used in 1 or more real 
property trades or businesses (as defined in sec-
tion 469(c)(7)(C)), 
‘‘(G) asset (other than a patent, trade-
mark, or copyright) which produces royalty in-
come, 
‘‘(H) commodity, 
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‘‘(I) collectible (within the meaning of sec-
tion 401(m)), or 
‘‘(J) any other asset specified in regula-
tions prescribed by the Secretary. 
‘‘(4) LOOK-THRU RULES.— 
‘‘(A) IN GENERAL.—If a nonbusiness asset 
of an entity consists of a 10-percent interest in 
any other entity, this subsection shall be ap-
plied by disregarding the 10-percent interest 
and by treating the entity as holding directly its 
ratable share of the assets of the other entity. 
This subparagraph shall be applied successively 
to any 10-percent interest of such other entity 
in any other entity. 
‘‘(B) 10-PERCENT
INTEREST.—The term 
‘10-percent interest’ means— 
‘‘(i) in the case of an interest in a cor-
poration, ownership of at least 10 percent 
(by vote or value) of the stock in such cor-
poration, 
‘‘(ii) in the case of an interest in a 
partnership, ownership of at least 10 per-
cent of the capital or profits interest in the 
partnership, and 
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‘‘(iii) in any other case, ownership of 
at least 10 percent of the beneficial inter-
ests in the entity. 
‘‘(5) COORDINATION WITH SUBSECTION (b).— 
Subsection (b) shall apply after the application of 
this subsection. 
‘‘(e) LIMITATION ON MINORITY DISCOUNTS.—For 
purposes of this chapter and chapter 12, in the case of 
the transfer of any interest in an entity other than an in-
terest which is actively traded (within the meaning of sec-
tion 1092), no discount shall be allowed by reason of the 
fact that the transferee does not have control of such enti-
ty if the transferor, the transferee, and members of the 
family (as defined in section 2032A(e)(2)) of the trans-
feror and transferee— 
‘‘(1) have control of such entity, or 
‘‘(2) own the majority of the ownership inter-
ests (by value) in such entity.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transfers after the date of the 
enactment of this Act. 
Æ 
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emcdonald on DSK67QTVN1PROD with BILLS