I 
112TH CONGRESS 
2D SESSION 
H. R. 4226 
To amend the Internal Revenue Code of 1986 to make permanent the full 
exclusion applicable to qualified small business stock. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 20, 2012 
Ms. MOORE 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 make 
permanent the full exclusion applicable to qualified small 
business stock. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. PERMANENT FULL EXCLUSION APPLICABLE TO 
QUALIFIED SMALL BUSINESS STOCK. 
(a) PERMANENT FULL EXCLUSION.— 
(1) IN
GENERAL.—Subsection (a) of section 
1202 of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(a) EXCLUSION.—In the case of a taxpayer other 
than a corporation, gross income shall not include 100 
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percent of any gain from the sale or exchange of qualified 
small business stock held for more than 5 years.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The heading for section 1202 of such 
Code is amended by striking ‘‘PARTIAL EX-
CLUSION’’ and inserting ‘‘EXCLUSION’’. 
(B) The item relating to section 1202 in 
the table of sections for part I of subchapter P 
of chapter 1 of such Code is amended by strik-
ing ‘‘Partial exclusion’’ and inserting ‘‘Exclu-
sion’’. 
(C) Section 1223(13) of such Code is 
amended by striking ‘‘1202(a)(2),’’. 
(b) REPEAL OF MINIMUM TAX PREFERENCE.— 
(1) IN GENERAL.—Subsection (a) of section 57 
of the Internal Revenue Code of 1986 is amended by 
striking paragraph (7). 
(2) TECHNICAL AMENDMENT.—Subclause (II) 
of section 53(d)(1)(B)(ii) of such Code is amended 
by striking ‘‘, (5), and (7)’’ and inserting ‘‘and (5)’’. 
(c) REPEAL OF 28 PERCENT CAPITAL GAINS RATE 
ON QUALIFIED SMALL BUSINESS STOCK.— 
(1) IN GENERAL.—Subparagraph (A) of section 
1(h)(4) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
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‘‘(A) collectibles gain, over’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 1(h) of such Code is amended 
by striking paragraph (7). 
(B)(i) Section 1(h) of such Code is amend-
ed by redesignating paragraphs (8), (9), (10), 
and (11) as paragraphs (7), (8), (9), and (10), 
respectively. 
(ii) 
Sections 
163(d)(4)(B), 
854(b)(4), 
857(c)(2)(D) of such Code are each amended 
by striking ‘‘section 1(h)(11)(B)’’ and inserting 
‘‘section 1(h)(10)(B)’’. 
(iii) The following sections of such Code 
are 
each 
amended 
by 
striking 
‘‘section 
1(h)(11)’’ each place it appears and inserting 
‘‘section 1(h)(10)’’: 
(I) Section 301(f)(4). 
(II) Section 306(a)(1)(D). 
(III) Section 584(c). 
(IV) Section 702(a)(5). 
(V) Section 854(a). 
(VI) Section 911(f)(2). 
(iv) The heading of section 857(c)(2) of 
such Code is amended by striking ‘‘1(H)(11)’’ 
and inserting ‘‘1(H)(10)’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section apply to stock acquired after December 31, 
2011. 
Æ 
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