IB 
Union Calendar No. 9 
114TH CONGRESS 
1ST SESSION 
H. R. 629 
[Report No. 114–15] 
To amend the Internal Revenue Code of 1986 to make permanent the reduced 
recognition period for built-in gains of S corporations. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 30, 2015 
Mr. REICHERT (for himself and Mr. KIND) introduced the following bill; which 
was referred to the Committee on Ways and Means 
FEBRUARY 9, 2015 
Additional sponsors: Mr. REED and Mr. COSTELLO of Pennsylvania 
FEBRUARY 9, 2015 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on January 30, 2015] 
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A BILL 
To amend the Internal Revenue Code of 1986 to make 
permanent the reduced recognition period for built-in 
gains of S corporations. 
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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 ‘‘Permanent S Corpora-
tion Built-in Gain Recognition Period Act of 2015’’. 
SEC. 2. REDUCED RECOGNITION PERIOD FOR BUILT-IN 
GAINS OF S CORPORATIONS MADE PERMA-
NENT. 
(a) IN GENERAL.—Paragraph (7) of section 1374(d) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(7) RECOGNITION PERIOD.— 
‘‘(A) IN GENERAL.—The term ‘recognition 
period’ means the 5-year period beginning with 
the 1st day of the 1st taxable year for which the 
corporation was an S corporation. For purposes 
of applying this section to any amount includ-
ible in income by reason of distributions to 
shareholders pursuant to section 593(e), the pre-
ceding sentence shall be applied without regard 
to the phrase ‘5-year’. 
‘‘(B) INSTALLMENT SALES.—If an S cor-
poration sells an asset and reports the income 
from the sale using the installment method under 
section 453, the treatment of all payments re-
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ceived shall be governed by the provisions of this 
paragraph applicable to the taxable year in 
which such sale was made.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2014. 
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Union Calendar No. 9 
114TH CONGRESS 
1ST SESSION 
H. R. 629 
[Report No. 114–15] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
make permanent the reduced recognition period 
for built-in gains of S corporations. 
FEBRUARY 9, 2015 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Sep 11 2014 
20:24 Feb 09, 2015
Jkt 049200
PO 00000
Frm 00006
Fmt 6651
Sfmt 6651
E:\BILLS\H629.RH
H629
mstockstill on DSK4VPTVN1PROD with BILLS