I 
112TH CONGRESS 
1ST SESSION H. R. 1313 
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 
APRIL 1, 2011 
Mr. POLIS (for himself and Mr. COFFMAN 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 ‘‘Community Bank and 
Automotive Industry Recapitalization Act of 2011’’. 
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 139D the following new section: 
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‘‘SEC. 139E. 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 5 
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 community bank or an auto-
motive company. 
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‘‘(B) COMMUNITY BANK.—The term ‘com-
munity bank’ means any community bank with 
less than $10,000,000,000 in assets which is 
established and regulated under the laws of the 
United States or any State, territory, or posses-
sion of the United States, the District of Co-
lumbia, Commonwealth of Puerto Rico, Com-
monwealth 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 institution owned by, a foreign govern-
ment. 
‘‘(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.’’. 
(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 
139D the following new item: 
‘‘Sec. 139E. Capital gains on investments in certain industries.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property acquired after the date 
of the enactment of this Act. 
Æ 
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