S Corp Access to Crowdfunding Act

Bill: 116-hr-8985
Sponsor: full_name: Rep. Hill, J. French [R-AR-2]
Introduced: 2020-12-16
Policy area: Taxation
Subjects: Corporate finance and management

Securities

Small business
Latest action: action_date: 2020-12-16
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2020-12-16
action_desc: Introduced in House
text: <p><b>S-Corp Access to Crowdfunding Act</b></p> <p>This bill excludes from the 100 shareholder limitation for S corporations individuals who acquired shares in such corporations through (1) small public offerings, or (2) one or more crowdfunding (i.e., contributions by large numbers of individuals mostly from online solicitations) offerings. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 8985 IN THE HOUSE OF REPRESENTATIVES December 16, 2020 Mr. Hill of Arkansas (for himself and Mr. Schweikert ) 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 an exception to the 100 shareholder S corporation limitation in the case of shareholders whose shares were acquired through certain crowdfunding or small public offerings.

1. Short title This Act may be cited as the S Corp Access to Crowdfunding Act . 2. Exception to S corporation shareholder limitation in case of crowdfunding and small public offerings (a) In general Section 1361(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (7) Treatment of shares acquired through crowdfunding and small public offerings The number of shareholders of the corporation shall be determined under subsection (b)(1)(A) without regard to any individual who has only acquired shares in the corporation through— (A) a public offering that meets the terms and conditions set forth in Regulation A promulgated by the Securities and Exchange Commission (17 C.F.R. 230.251 et seq.), or (B) one or more transactions described in section 4(a)(6) of the Securities Act of 1933 ( 15 U.S.C. 77d(a)(6) ). . (b) Effective date The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.