I 
111TH CONGRESS 
1ST SESSION H. R. 1783 
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 30, 2009 
Mr. POLIS of Colorado 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 encourage 
investment in certain industries by providing an exclusion 
from tax on certain gains. 
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 ‘‘Enterprise Sector In-
vestment Opportunity Act of 2009’’. 
SEC. 2. EXCLUSION OF CAPITAL GAINS ON INVESTMENTS 
IN CERTAIN INDUSTRIES. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139C the following new section: 
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‘‘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 enact-
ment of this section, and 
‘‘(2) such property is held for more than 2 
years. 
‘‘(b) QUALIFIED INVESTMENT PROPERTY.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified invest-
ment property’ means any— 
‘‘(A) stock in a specified domestic corpora-
tion 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 PARTNER-
SHIPS.— 
‘‘(A) IN GENERAL.—A corporation or part-
nership shall be treated as specified for pur-
poses of paragraph (1) if such corporation or 
partnership is a financial institution or an auto-
motive company. 
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‘‘(B) FINANCIAL INSTITUTION.—The term 
‘financial institution’ means any institution, in-
cluding, but not limited to, any bank, savings 
association, credit union, security broker or 
dealer, or insurance company, established and 
regulated under the laws of the United States 
or any State, territory, or possession of the 
United States, the District of Columbia, Com-
monwealth 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 in-
stitution owned by, a foreign government. 
‘‘(C) AUTOMOTIVE
COMPANY.—The term 
‘automotive company’ means any person the 
majority of the gross receipts of which are de-
rived 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 
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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 assist-
ance under title I of the Emergency Economic Stabiliza-
tion 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. 
Æ 
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