Us Congress 2025-2026 Regular Session

Us Congress House Bill HB2621 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 2621
5	5	To amend the Internal Revenue Code of 1986 to establish deductions for
6	6	cash tips, repeal the inclusion of social security benefits in gross income,
7	7	and for other purposes.
8	8	IN THE HOUSE OF REPRESENTATIVES
9	9	APRIL3, 2025
10	10	Mr. C
11	11	OHEN(for himself and Mr. CARSON) introduced the following bill; which
12	12	was referred to the Committee on Ways and Means
13	13	A BILL
14	14	To amend the Internal Revenue Code of 1986 to establish
15	15	deductions for cash tips, repeal the inclusion of social
16	16	security benefits in gross income, and for other purposes.
17	17	Be it enacted by the Senate and House of Representa-1
18	18	tives of the United States of America in Congress assembled, 2
19	19	SECTION 1. SHORT TITLE; ETC. 3
20	20	(a) S
21	21	HORTTITLE.—This Act may be cited as the 4
22	22	‘‘Reward Each American’s Labor And Make Every Rich 5
23	23	Individual Contribute Again Act’’ or the ‘‘REAL AMER-6
24	24	ICA Act’’. 7
25	25	(b) A
26	26	MENDMENT OF 1986 CODE.—Except as other-8
27	27	wise expressly provided, whenever in this Act an amend-9
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30	30	•HR 2621 IH
31	31	ment or repeal is expressed in terms of an amendment 1
32	32	to, or repeal of, a section or other provision, the reference 2
33	33	shall be considered to be made to a section or other provi-3
34	34	sion of the Internal Revenue Code of 1986. 4
35	35	SEC. 2. DEDUCTION FOR CASH TIPS. 5
36	36	(a) D
37	37	EDUCTIONALLOWED.— 6
38	38	(1) I
39	39	N GENERAL.—Part VII of subchapter B of 7
40	40	chapter 1 is amended by redesignating section 224 8
41	41	as section 225 and by inserting after section 223 the 9
42	42	following new section: 10
43	43	‘‘SEC. 224. CASH TIPS. 11
44	44	‘‘(a) I
45	45	NGENERAL.—There shall be allowed as a de-12
46	46	duction an amount equal to the cash tips received during 13
47	47	the taxable year that are included on statements furnished 14
48	48	to the employer pursuant to section 6053(a). 15
49	49	‘‘(b) L
50	50	IMITATIONBASED ONMODIFIEDADJUSTED 16
51	51	G
52	52	ROSSINCOME.— 17
53	53	‘‘(1) I
54	54	N GENERAL.—No deduction shall be al-18
55	55	lowed by this section for any taxpayer if such tax-19
56	56	payer’s modified adjusted gross income for the tax-20
57	57	able year exceeds $450,000 ($900,000, in the case 21
58	58	of a joint return). 22
59	59	‘‘(2) M
60	60	ODIFIED ADJUSTED GROSS INCOME .— 23
61	61	For purposes of this subsection, the term ‘modified 24
62	62	adjusted gross income’ means the adjusted gross in-25
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65	65	•HR 2621 IH
66	66	come of the taxpayer for the taxable year increased 1
67	67	by any amount excluded from gross income under 2
68	68	section 911, 931, or 933.’’. 3
69	69	(2) C
70	70	LERICAL AMENDMENT .—The table of sec-4
71	71	tions for part VII of subchapter B of chapter 1 is 5
72	72	amended by redesignating the item relating to sec-6
73	73	tion 224 as relating to section 225 and by inserting 7
74	74	after the item relating to section 223 the following 8
75	75	new item: 9
76	76	‘‘Sec. 224. Cash tips.’’.
77	77	(b) DEDUCTIONALLOWED TO NON-ITEMIZERS.— 10
78	78	Section 63(b) is amended by striking ‘‘and’’ at the end 11
79	79	of paragraph (3), by striking the period at the end of para-12
80	80	graph (4) and inserting ‘‘, and’’, and by adding at the 13
81	81	end the following new paragraph: 14
82	82	‘‘(5) the deduction provided in section 224.’’. 15
83	83	(c) W
84	84	ITHHOLDING.—The Secretary of the Treasury 16
85	85	(or the Secretary’s delegate) shall modify the tables and 17
86	86	procedures prescribed under section 3402(a) of the Inter-18
87	87	nal Revenue Code of 1986 to take into account the deduc-19
88	88	tion allowed under section 224 of such Code (as added 20
89	89	by this Act). 21
90	90	(d) E
91	91	FFECTIVEDATE.—The amendments made by 22
92	92	this section shall apply to taxable years beginning after 23
93	93	December 31, 2025. 24
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96	96	•HR 2621 IH
97	97	SEC. 3. REPEAL OF INCLUSION OF SOCIAL SECURITY BENE-1
98	98	FITS IN GROSS INCOME. 2
99	99	(a) I
100	100	NGENERAL.—Section 86 is amended by adding 3
101	101	at the end the following new subsection: 4
102	102	‘‘(g) T
103	103	ERMINATION.—This section shall not apply to 5
104	104	any taxable year beginning after December 31, 2025.’’. 6
105	105	(b) S
106	106	OCIALSECURITYTRUSTFUNDSHELDHARM-7
107	107	LESS.—There are hereby appropriated (out of any money 8
108	108	in the Treasury not otherwise appropriated) for each fiscal 9
109	109	year to each fund under the Social Security Act (including 10
110	110	the Federal Hospital Insurance Trust Fund) or the Rail-11
111	111	road Retirement Act of 1974 an amount equal to the re-12
112	112	duction in the transfers to such fund for such fiscal year 13
113	113	by reason of section 86(g) of the Internal Revenue Code 14
114	114	of 1986. 15
115	115	SEC. 4. DEDUCTION FOR QUALIFIED OVERTIME COM-16
116	116	PENSATION. 17
117	117	(a) D
118	118	EDUCTIONALLOWED.— 18
119	119	(1) I
120	120	N GENERAL.—Part VII of subchapter B of 19
121	121	chapter 1, as amended by the preceding provisions 20
122	122	of this Act, is amended by redesignating section 225 21
123	123	as section 226 and by inserting after section 224 the 22
124	124	following new section: 23
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127	127	•HR 2621 IH
128	128	‘‘SEC. 225. QUALIFIED OVERTIME COMPENSATION. 1
129	129	‘‘(a) I
130	130	NGENERAL.—There shall be allowed as a de-2
131	131	duction an amount equal to the qualified overtime com-3
132	132	pensation received during the taxable year. 4
133	133	‘‘(b) L
134	134	IMITATIONBASED ONMODIFIEDADJUSTED 5
135	135	G
136	136	ROSSINCOME.— 6
137	137	‘‘(1) I
138	138	N GENERAL.—No deduction shall be al-7
139	139	lowed by this section for any taxpayer if such tax-8
140	140	payer’s modified adjusted gross income for the tax-9
141	141	able year exceeds $450,000 ($900,000, in the case 10
142	142	of a joint return). 11
143	143	‘‘(2) M
144	144	ODIFIED ADJUSTED GROSS INCOME .— 12
145	145	For purposes of this subsection, the term ‘modified 13
146	146	adjusted gross income’ means the adjusted gross in-14
147	147	come of the taxpayer for the taxable year increased 15
148	148	by any amount excluded from gross income under 16
149	149	section 911, 931, or 933. 17
150	150	‘‘(c) Q
151	151	UALIFIEDOVERTIMECOMPENSATION.—For 18
152	152	purposes of this section, the term ‘qualified overtime com-19
153	153	pensation’ means overtime compensation that is paid to 20
154	154	an individual as required under section 7 of the Fair 21
155	155	Labor Standards Act of 1938 and is in excess of the reg-22
156	156	ular rate (as used in such section) at which such individual 23
157	157	is employed. Such term shall not include any amount de-24
158	158	ducted under section 224.’’. 25
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161	161	•HR 2621 IH
162	162	(2) CLERICAL AMENDMENT .—The table of sec-1
163	163	tions for part VII of subchapter B of chapter 1, as 2
164	164	amended by the preceding provisions of this Act, is 3
165	165	amended by redesignating the item relating to sec-4
166	166	tion 225 as relating to section 226 and by inserting 5
167	167	after the item relating to section 224 the following 6
168	168	new item: 7
169	169	‘‘225. Qualified overtime compensation.’’.
170	170	(b) DEDUCTIONALLOWED TO NON-ITEMIZERS.— 8
171	171	Section 63(b), as amended by the preceding provisions of 9
172	172	this Act, is amended by striking ‘‘and’’ at the end of para-10
173	173	graph (4), by striking the period at the end of paragraph 11
174	174	(5) and inserting ‘‘, and’’, and by adding at the end the 12
175	175	following new paragraph: 13
176	176	‘‘(6) the deduction provided in section 225.’’. 14
177	177	(c) R
178	178	EQUIREMENT TOINCLUDEOVERTIMECOM-15
179	179	PENSATION ON W–2.—Section 6051(a) is amended by 16
180	180	striking ‘‘and’’ at the end of paragraph (16), by striking 17
181	181	the period at the end of paragraph (17) and inserting ‘‘, 18
182	182	and’’, and by inserting after paragraph (17) the following 19
183	183	new paragraph: 20
184	184	‘‘(18) the total amount of qualified overtime 21
185	185	compensation (as defined in section 225(b)).’’. 22
186	186	(d) W
187	187	ITHHOLDING.—The Secretary of the Treasury 23
188	188	(or the Secretary’s delegate) shall modify the tables and 24
189	189	procedures prescribed under section 3402(a) of the Inter-25
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192	192	•HR 2621 IH
193	193	nal Revenue Code of 1986 to take into account the deduc-1
194	194	tion allowed under section 225 of such Code (as added 2
195	195	by this Act). 3
196	196	(e) E
197	197	FFECTIVEDATE.—The amendments made by 4
198	198	this section shall apply to taxable years beginning after 5
199	199	December 31, 2025. 6
200	200	SEC. 5. PARTNERSHIP INTERESTS TRANSFERRED IN CON-7
201	201	NECTION WITH PERFORMANCE OF SERVICES. 8
202	202	(a) M
203	203	ODIFICATION TOELECTIONTOINCLUDEPART-9
204	204	NERSHIPINTEREST IN GROSSINCOME IN YEAR OF 10
205	205	T
206	206	RANSFER.—Subsection (c) of section 83 is amended by 11
207	207	redesignating paragraph (4) as paragraph (5) and by in-12
208	208	serting after paragraph (3) the following new paragraph: 13
209	209	‘‘(4) P
210	210	ARTNERSHIP INTERESTS .—Except as 14
211	211	provided by the Secretary— 15
212	212	‘‘(A) I
213	213	N GENERAL.—In the case of any 16
214	214	transfer of an interest in a partnership in con-17
215	215	nection with the provision of services to (or for 18
216	216	the benefit of) such partnership— 19
217	217	‘‘(i) the fair market value of such in-20
218	218	terest shall be treated for purposes of this 21
219	219	section as being equal to the amount of the 22
220	220	distribution which the partner would re-23
221	221	ceive if the partnership sold (at the time of 24
222	222	the transfer) all of its assets at fair market 25
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225	225	•HR 2621 IH
226	226	value and distributed the proceeds of such 1
227	227	sale (reduced by the liabilities of the part-2
228	228	nership) to its partners in liquidation of 3
229	229	the partnership, and 4
230	230	‘‘(ii) the person receiving such interest 5
231	231	shall be treated as having made the elec-6
232	232	tion under subsection (b)(1) unless such 7
233	233	person makes an election under this para-8
234	234	graph to have such subsection not apply. 9
235	235	‘‘(B) E
236	236	LECTION.—The election under sub-10
237	237	paragraph (A)(ii) shall be made under rules 11
238	238	similar to the rules of subsection (b)(2).’’. 12
239	239	(b) E
240	240	FFECTIVEDATE.—The amendments made by 13
241	241	this section shall apply to interests in partnerships trans-14
242	242	ferred after the date of the enactment of this Act. 15
243	243	SEC. 6. SPECIAL RULES FOR PARTNERS PROVIDING IN-16
244	244	VESTMENT MANAGEMENT SERVICES TO 17
245	245	PARTNERSHIPS. 18
246	246	(a) I
247	247	NGENERAL.—Part I of subchapter K of chapter 19
248	248	1 is amended by adding at the end the following new sec-20
249	249	tion: 21
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253	253	‘‘SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING IN-1
254	254	VESTMENT MANAGEMENT SERVICES TO 2
255	255	PARTNERSHIPS. 3
256	256	‘‘(a) T
257	257	REATMENT OF DISTRIBUTIVESHARE OF 4
258	258	P
259	259	ARTNERSHIPITEMS.—For purposes of this title, in the 5
260	260	case of an investment services partnership interest— 6
261	261	‘‘(1) I
262	262	N GENERAL.—Notwithstanding section 7
263	263	702(b)— 8
264	264	‘‘(A) an amount equal to the net capital 9
265	265	gain with respect to such interest for any part-10
266	266	nership taxable year shall be treated as ordi-11
267	267	nary income, and 12
268	268	‘‘(B) subject to the limitation of paragraph 13
269	269	(2), an amount equal to the net capital loss 14
270	270	with respect to such interest for any partner-15
271	271	ship taxable year shall be treated as an ordi-16
272	272	nary loss. 17
273	273	‘‘(2) R
274	274	ECHARACTERIZATION OF LOSSES LIM -18
275	275	ITED TO RECHARACTERIZED GAINS .—The amount 19
276	276	treated as ordinary loss under paragraph (1)(B) for 20
277	277	any taxable year shall not exceed the excess (if any) 21
278	278	of— 22
279	279	‘‘(A) the aggregate amount treated as ordi-23
280	280	nary income under paragraph (1)(A) with re-24
281	281	spect to the investment services partnership in-25
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284	284	•HR 2621 IH
285	285	terest for all preceding partnership taxable 1
286	286	years to which this section applies, over 2
287	287	‘‘(B) the aggregate amount treated as or-3
288	288	dinary loss under paragraph (1)(B) with re-4
289	289	spect to such interest for all preceding partner-5
290	290	ship taxable years to which this section applies. 6
291	291	‘‘(3) A
292	292	LLOCATION TO ITEMS OF GAIN AND 7
293	293	LOSS.— 8
294	294	‘‘(A) N
295	295	ET CAPITAL GAIN.—The amount 9
296	296	treated as ordinary income under paragraph 10
297	297	(1)(A) shall be allocated ratably among the 11
298	298	items of long-term capital gain taken into ac-12
299	299	count in determining such net capital gain. 13
300	300	‘‘(B) N
301	301	ET CAPITAL LOSS.—The amount 14
302	302	treated as ordinary loss under paragraph (1)(B) 15
303	303	shall be allocated ratably among the items of 16
304	304	long-term capital loss and short-term capital 17
305	305	loss taken into account in determining such net 18
306	306	capital loss. 19
307	307	‘‘(4) T
308	308	ERMS RELATING TO CAPITAL GAINS AND 20
309	309	LOSSES.—For purposes of this section— 21
310	310	‘‘(A) I
311	311	N GENERAL.—Net capital gain, long- 22
312	312	term capital gain, and long-term capital loss, 23
313	313	with respect to any investment services partner-24
314	314	ship interest for any taxable year, shall be de-25
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317	317	•HR 2621 IH
318	318	termined under section 1222, except that such 1
319	319	section shall be applied— 2
320	320	‘‘(i) without regard to the recharacter-3
321	321	ization of any item as ordinary income or 4
322	322	ordinary loss under this section, 5
323	323	‘‘(ii) by only taking into account items 6
324	324	of gain and loss taken into account by the 7
325	325	holder of such interest under section 702 8
326	326	(other than subsection (a)(9) thereof) with 9
327	327	respect to such interest for such taxable 10
328	328	year, and 11
329	329	‘‘(iii) by treating property which is 12
330	330	taken into account in determining gains 13
331	331	and losses to which section 1231 applies as 14
332	332	capital assets held for more than 1 year. 15
333	333	‘‘(B) N
334	334	ET CAPITAL LOSS.—The term ‘net 16
335	335	capital loss’ means the excess of the losses from 17
336	336	sales or exchanges of capital assets over the 18
337	337	gains from such sales or exchanges. Rules simi-19
338	338	lar to the rules of clauses (i) through (iii) of 20
339	339	subparagraph (A) shall apply for purposes of 21
340	340	the preceding sentence. 22
341	341	‘‘(5) S
342	342	PECIAL RULE FOR DIVIDENDS .—Any div-23
343	343	idend allocated with respect to any investment serv-24
344	344	ices partnership interest shall not be treated as 25
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347	347	•HR 2621 IH
348	348	qualified dividend income for purposes of section 1
349	349	1(h). 2
350	350	‘‘(6) S
351	351	PECIAL RULE FOR QUALIFIED SMALL 3
352	352	BUSINESS STOCK.—Section 1202 shall not apply to 4
353	353	any gain from the sale or exchange of qualified small 5
354	354	business stock (as defined in section 1202(c)) allo-6
355	355	cated with respect to any investment services part-7
356	356	nership interest. 8
357	357	‘‘(b) D
358	358	ISPOSITIONS OFPARTNERSHIPINTERESTS.— 9
359	359	‘‘(1) G
360	360	AIN.— 10
361	361	‘‘(A) I
362	362	N GENERAL.—Any gain on the dis-11
363	363	position of an investment services partnership 12
364	364	interest shall be— 13
365	365	‘‘(i) treated as ordinary income, and 14
366	366	‘‘(ii) recognized notwithstanding any 15
367	367	other provision of this subtitle. 16
368	368	‘‘(B) G
369	369	IFT AND TRANSFERS AT DEATH .— 17
370	370	In the case of a disposition of an investment 18
371	371	services partnership interest by gift or by rea-19
372	372	son of death of the taxpayer— 20
373	373	‘‘(i) subparagraph (A) shall not apply, 21
374	374	‘‘(ii) such interest shall be treated as 22
375	375	an investment services partnership interest 23
376	376	in the hands of the person acquiring such 24
377	377	interest, and 25
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380	380	•HR 2621 IH
381	381	‘‘(iii) any amount that would have 1
382	382	been treated as ordinary income under this 2
383	383	subsection had the decedent sold such in-3
384	384	terest immediately before death shall be 4
385	385	treated as an item of income in respect of 5
386	386	a decedent under section 691. 6
387	387	‘‘(2) L
388	388	OSS.—Any loss on the disposition of an 7
389	389	investment services partnership interest shall be 8
390	390	treated as an ordinary loss to the extent of the ex-9
391	391	cess (if any) of— 10
392	392	‘‘(A) the aggregate amount treated as ordi-11
393	393	nary income under subsection (a) with respect 12
394	394	to such interest for all partnership taxable 13
395	395	years to which this section applies, over 14
396	396	‘‘(B) the aggregate amount treated as or-15
397	397	dinary loss under subsection (a) with respect to 16
398	398	such interest for all partnership taxable years 17
399	399	to which this section applies. 18
400	400	‘‘(3) E
401	401	LECTION WITH RESPECT TO CERTAIN EX -19
402	402	CHANGES.—Paragraph (1)(A)(ii) shall not apply to 20
403	403	the contribution of an investment services partner-21
404	404	ship interest to a partnership in exchange for an in-22
405	405	terest in such partnership if— 23
406	406	‘‘(A) the taxpayer makes an irrevocable 24
407	407	election to treat the partnership interest re-25
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410	410	•HR 2621 IH
411	411	ceived in the exchange as an investment serv-1
412	412	ices partnership interest, and 2
413	413	‘‘(B) the taxpayer agrees to comply with 3
414	414	such reporting and recordkeeping requirements 4
415	415	as the Secretary may prescribe. 5
416	416	‘‘(4) D
417	417	ISTRIBUTIONS OF PARTNERSHIP PROP -6
418	418	ERTY.— 7
419	419	‘‘(A) I
420	420	N GENERAL.—In the case of any dis-8
421	421	tribution of property by a partnership with re-9
422	422	spect to any investment services partnership in-10
423	423	terest held by a partner, the partner receiving 11
424	424	such property shall recognize gain equal to the 12
425	425	excess (if any) of— 13
426	426	‘‘(i) the fair market value of such 14
427	427	property at the time of such distribution, 15
428	428	over 16
429	429	‘‘(ii) the adjusted basis of such prop-17
430	430	erty in the hands of such partner (deter-18
431	431	mined without regard to subparagraph 19
432	432	(C)). 20
433	433	‘‘(B) T
434	434	REATMENT OF GAIN AS ORDINARY 21
435	435	INCOME.—Any gain recognized by such partner 22
436	436	under subparagraph (A) shall be treated as or-23
437	437	dinary income to the same extent and in the 24
438	438	same manner as the increase in such partner’s 25
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441	441	•HR 2621 IH
442	442	distributive share of the taxable income of the 1
443	443	partnership would be treated under subsection 2
444	444	(a) if, immediately prior to the distribution, the 3
445	445	partnership had sold the distributed property at 4
446	446	fair market value and all of the gain from such 5
447	447	disposition were allocated to such partner. For 6
448	448	purposes of applying subsection (a)(2), any gain 7
449	449	treated as ordinary income under this subpara-8
450	450	graph shall be treated as an amount treated as 9
451	451	ordinary income under subsection (a)(1)(A). 10
452	452	‘‘(C) A
453	453	DJUSTMENT OF BASIS.—In the case 11
454	454	of a distribution to which subparagraph (A) ap-12
455	455	plies, the basis of the distributed property in 13
456	456	the hands of the distributee partner shall be the 14
457	457	fair market value of such property. 15
458	458	‘‘(D) S
459	459	PECIAL RULES WITH RESPECT TO 16
460	460	MERGERS AND DIVISIONS .—In the case of a 17
461	461	taxpayer which satisfies requirements similar to 18
462	462	the requirements of subparagraphs (A) and (B) 19
463	463	of paragraph (3), this paragraph and paragraph 20
464	464	(1)(A)(ii) shall not apply to the distribution of 21
465	465	a partnership interest if such distribution is in 22
466	466	connection with a contribution (or deemed con-23
467	467	tribution) of any property of the partnership to 24
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469	469	ssavage on LAPJG3WLY3PROD with BILLS 16
470	470	•HR 2621 IH
471	471	which section 721 applies pursuant to a trans-1
472	472	action described in section 708(b)(2). 2
473	473	‘‘(c) I
474	474	NVESTMENTSERVICESPARTNERSHIPINTER-3
475	475	EST.—For purposes of this section— 4
476	476	‘‘(1) I
477	477	N GENERAL.—The term ‘investment serv-5
478	478	ices partnership interest’ means any interest in an 6
479	479	investment partnership acquired or held by any per-7
480	480	son in connection with the conduct of a trade or 8
481	481	business described in paragraph (2) by such person 9
482	482	(or any person related to such person). An interest 10
483	483	in an investment partnership held by any person— 11
484	484	‘‘(A) shall not be treated as an investment 12
485	485	services partnership interest for any period be-13
486	486	fore the first date on which it is so held in con-14
487	487	nection with such a trade or business, 15
488	488	‘‘(B) shall not cease to be an investment 16
489	489	services partnership interest merely because 17
490	490	such person holds such interest other than in 18
491	491	connection with such a trade or business, and 19
492	492	‘‘(C) shall be treated as an investment 20
493	493	services partnership interest if acquired from a 21
494	494	related person in whose hands such interest was 22
495	495	an investment services partnership interest. 23
496	496	‘‘(2) B
497	497	USINESSES TO WHICH THIS SECTION AP -24
498	498	PLIES.—A trade or business is described in this 25
499	499	VerDate Sep 11 2014 22:53 May 02, 2025 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H2621.IH H2621
500	500	ssavage on LAPJG3WLY3PROD with BILLS 17
501	501	•HR 2621 IH
502	502	paragraph if such trade or business primarily in-1
503	503	volves the performance of any of the following serv-2
504	504	ices with respect to assets held (directly or indi-3
505	505	rectly) by one or more investment partnerships re-4
506	506	ferred to in paragraph (1): 5
507	507	‘‘(A) Advising as to the advisability of in-6
508	508	vesting in, purchasing, or selling any specified 7
509	509	asset. 8
510	510	‘‘(B) Managing, acquiring, or disposing of 9
511	511	any specified asset. 10
512	512	‘‘(C) Arranging financing with respect to 11
513	513	acquiring specified assets. 12
514	514	‘‘(D) Any activity in support of any service 13
515	515	described in subparagraphs (A) through (C). 14
516	516	‘‘(3) I
517	517	NVESTMENT PARTNERSHIP .— 15
518	518	‘‘(A) I
519	519	N GENERAL.—The term ‘investment 16
520	520	partnership’ means any partnership if, at the 17
521	521	end of any two consecutive calendar quarters 18
522	522	ending after the date of enactment of this sec-19
523	523	tion— 20
524	524	‘‘(i) substantially all of the assets of 21
525	525	the partnership are specified assets (deter-22
526	526	mined without regard to any section 197 23
527	527	intangible within the meaning of section 24
528	528	197(d)), and 25
529	529	VerDate Sep 11 2014 22:53 May 02, 2025 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H2621.IH H2621
530	530	ssavage on LAPJG3WLY3PROD with BILLS 18
531	531	•HR 2621 IH
532	532	‘‘(ii) less than 75 percent of the cap-1
533	533	ital of the partnership is attributable to 2
534	534	qualified capital interests which constitute 3
535	535	property held in connection with a trade or 4
536	536	business of the owner of such interest. 5
537	537	‘‘(B) L
538	538	OOK-THROUGH OF CERTAIN WHOL -6
539	539	LY OWNED ENTITIES FOR PURPOSES OF DETER -7
540	540	MINING ASSETS OF THE PARTNERSHIP .— 8
541	541	‘‘(i) I
542	542	N GENERAL.—For purposes of 9
543	543	determining the assets of a partnership 10
544	544	under subparagraph (A)(i)— 11
545	545	‘‘(I) any interest in a specified 12
546	546	entity shall not be treated as an asset 13
547	547	of such partnership, and 14
548	548	‘‘(II) such partnership shall be 15
549	549	treated as holding its proportionate 16
550	550	share of each of the assets of such 17
551	551	specified entity. 18
552	552	‘‘(ii) S
553	553	PECIFIED ENTITY.—For pur-19
554	554	poses of clause (i), the term ‘specified enti-20
555	555	ty’ means, with respect to any partnership 21
556	556	(hereafter referred to as the upper-tier 22
557	557	partnership), any person which engages in 23
558	558	the same trade or business as the upper- 24
559	559	tier partnership and is— 25
560	560	VerDate Sep 11 2014 22:53 May 02, 2025 Jkt 059200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H2621.IH H2621
561	561	ssavage on LAPJG3WLY3PROD with BILLS 19
562	562	•HR 2621 IH
563	563	‘‘(I) a partnership all of the cap-1
564	564	ital and profits interests of which are 2
565	565	held directly or indirectly by the 3
566	566	upper-tier partnership, or 4
567	567	‘‘(II) a foreign corporation which 5
568	568	does not engage in a trade or business 6
569	569	in the United States and all of the 7
570	570	stock of which is held directly or indi-8
571	571	rectly by the upper-tier partnership. 9
572	572	‘‘(C) S
573	573	PECIAL RULES FOR DETERMINING 10
574	574	IF PROPERTY HELD IN CONNECTION WITH 11
575	575	TRADE OR BUSINESS.— 12
576	576	‘‘(i) I
577	577	N GENERAL.—Except as other-13
578	578	wise provided by the Secretary, solely for 14
579	579	purposes of determining whether any inter-15
580	580	est in a partnership constitutes property 16
581	581	held in connection with a trade or business 17
582	582	under subparagraph (A)(ii)— 18
583	583	‘‘(I) a trade or business of any 19
584	584	person closely related to the owner of 20
585	585	such interest shall be treated as a 21
586	586	trade or business of such owner, 22
587	587	‘‘(II) such interest shall be treat-23
588	588	ed as held by a person in connection 24
589	589	with a trade or business during any 25
590	590	VerDate Sep 11 2014 22:53 May 02, 2025 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H2621.IH H2621
591	591	ssavage on LAPJG3WLY3PROD with BILLS 20
592	592	•HR 2621 IH
593	593	taxable year if such interest was so 1
594	594	held by such person during any 3 tax-2
595	595	able years preceding such taxable 3
596	596	year, and 4
597	597	‘‘(III) paragraph (5)(B) shall not 5
598	598	apply. 6
599	599	‘‘(ii) C
600	600	LOSELY RELATED PERSONS .— 7
601	601	For purposes of clause (i)(I), a person 8
602	602	shall be treated as closely related to an-9
603	603	other person if, taking into account the 10
604	604	rules of section 267(c), the relationship be-11
605	605	tween such persons is described in— 12
606	606	‘‘(I) paragraph (1) or (9) of sec-13
607	607	tion 267(b), or 14
608	608	‘‘(II) section 267(b)(4), but solely 15
609	609	in the case of a trust with respect to 16
610	610	which each current beneficiary is the 17
611	611	grantor or a person whose relationship 18
612	612	to the grantor is described in para-19
613	613	graph (1) or (9) of section 267(b). 20
614	614	‘‘(D) A
615	615	NTIABUSE RULES.—The Secretary 21
616	616	may issue regulations or other guidance which 22
617	617	prevent the avoidance of the purposes of sub-23
618	618	paragraph (A), including regulations or other 24
619	619	guidance which treat convertible and contingent 25
620	620	VerDate Sep 11 2014 22:53 May 02, 2025 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H2621.IH H2621
621	621	ssavage on LAPJG3WLY3PROD with BILLS 21
622	622	•HR 2621 IH
623	623	debt (and other debt having the attributes of 1
624	624	equity) as a capital interest in the partnership. 2
625	625	‘‘(E) C
626	626	ONTROLLED GROUPS OF ENTI -3
627	627	TIES.— 4
628	628	‘‘(i) I
629	629	N GENERAL.—In the case of a 5
630	630	controlled group of entities, if an interest 6
631	631	in the partnership received in exchange for 7
632	632	a contribution to the capital of the part-8
633	633	nership by any member of such controlled 9
634	634	group would (in the hands of such mem-10
635	635	ber) constitute property held in connection 11
636	636	with a trade or business, then any interest 12
637	637	in such partnership held by any member of 13
638	638	such group shall be treated for purposes of 14
639	639	subparagraph (A) as constituting (in the 15
640	640	hands of such member) property held in 16
641	641	connection with a trade or business. 17
642	642	‘‘(ii) C
643	643	ONTROLLED GROUP OF ENTI -18
644	644	TIES.—For purposes of clause (i), the term 19
645	645	‘controlled group of entities’ means a con-20
646	646	trolled group of corporations as defined in 21
647	647	section 1563(a)(1), applied without regard 22
648	648	to subsections (a)(4) and (b)(2) of section 23
649	649	1563. A partnership or any other entity 24
650	650	(other than a corporation) shall be treated 25
651	651	VerDate Sep 11 2014 22:53 May 02, 2025 Jkt 059200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H2621.IH H2621
652	652	ssavage on LAPJG3WLY3PROD with BILLS 22
653	653	•HR 2621 IH
654	654	as a member of a controlled group of enti-1
655	655	ties if such entity is controlled (within the 2
656	656	meaning of section 954(d)(3)) by members 3
657	657	of such group (including any entity treated 4
658	658	as a member of such group by reason of 5
659	659	this sentence). 6
660	660	‘‘(F) S
661	661	PECIAL RULE FOR CORPORA -7
662	662	TIONS.—For purposes of this paragraph, in the 8
663	663	case of a corporation, the determination of 9
664	664	whether property is held in connection with a 10
665	665	trade or business shall be determined as if the 11
666	666	taxpayer were an individual. 12
667	667	‘‘(4) S
668	668	PECIFIED ASSET.—The term ‘specified 13
669	669	asset’ means securities (as defined in section 14
670	670	475(c)(2) without regard to the last sentence there-15
671	671	of), real estate held for rental or investment, inter-16
672	672	ests in partnerships, commodities (as defined in sec-17
673	673	tion 475(e)(2)), cash or cash equivalents, or options 18
674	674	or derivative contracts with respect to any of the 19
675	675	foregoing. 20
676	676	‘‘(5) R
677	677	ELATED PERSONS.— 21
678	678	‘‘(A) I
679	679	N GENERAL.—A person shall be 22
680	680	treated as related to another person if the rela-23
681	681	tionship between such persons is described in 24
682	682	section 267(b) or 707(b). 25
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684	684	ssavage on LAPJG3WLY3PROD with BILLS 23
685	685	•HR 2621 IH
686	686	‘‘(B) ATTRIBUTION OF PARTNER SERV -1
687	687	ICES.—Any service described in paragraph (2) 2
688	688	which is provided by a partner of a partnership 3
689	689	shall be treated as also provided by such part-4
690	690	nership. 5
691	691	‘‘(d) E
692	692	XCEPTION FOR CERTAINCAPITALINTER-6
693	693	ESTS.— 7
694	694	‘‘(1) I
695	695	N GENERAL.—In the case of any portion 8
696	696	of an investment services partnership interest which 9
697	697	is a qualified capital interest, all items of gain and 10
698	698	loss (and any dividends) which are allocated to such 11
699	699	qualified capital interest shall not be taken into ac-12
700	700	count under subsection (a) if— 13
701	701	‘‘(A) allocations of items are made by the 14
702	702	partnership to such qualified capital interest in 15
703	703	the same manner as such allocations are made 16
704	704	to other qualified capital interests held by part-17
705	705	ners who do not provide any services described 18
706	706	in subsection (c)(2) and who are not related to 19
707	707	the partner holding the qualified capital inter-20
708	708	est, and 21
709	709	‘‘(B) the allocations made to such other in-22
710	710	terests are significant compared to the alloca-23
711	711	tions made to such qualified capital interest. 24
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713	713	ssavage on LAPJG3WLY3PROD with BILLS 24
714	714	•HR 2621 IH
715	715	‘‘(2) AUTHORITY TO PROVIDE EXCEPTIONS TO 1
716	716	ALLOCATION REQUIREMENTS .—To the extent pro-2
717	717	vided by the Secretary in regulations or other guid-3
718	718	ance— 4
719	719	‘‘(A) A
720	720	LLOCATIONS TO PORTION OF QUALI -5
721	721	FIED CAPITAL INTEREST .—Paragraph (1) may 6
722	722	be applied separately with respect to a portion 7
723	723	of a qualified capital interest. 8
724	724	‘‘(B) N
725	725	O OR INSIGNIFICANT ALLOCATIONS 9
726	726	TO NONSERVICE PROVIDERS .—In any case in 10
727	727	which the requirements of paragraph (1)(B) are 11
728	728	not satisfied, items of gain and loss (and any 12
729	729	dividends) shall not be taken into account under 13
730	730	subsection (a) to the extent that such items are 14
731	731	properly allocable under such regulations or 15
732	732	other guidance to qualified capital interests. 16
733	733	‘‘(C) A
734	734	LLOCATIONS TO SERVICE PRO -17
735	735	VIDERS’ QUALIFIED CAPITAL INTERESTS WHICH 18
736	736	ARE LESS THAN OTHER ALLOCATIONS .—Alloca-19
737	737	tions shall not be treated as failing to meet the 20
738	738	requirement of paragraph (1)(A) merely be-21
739	739	cause the allocations to the qualified capital in-22
740	740	terest represent a lower return than the alloca-23
741	741	tions made to the other qualified capital inter-24
742	742	ests referred to in such paragraph. 25
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744	744	ssavage on LAPJG3WLY3PROD with BILLS 25
745	745	•HR 2621 IH
746	746	‘‘(3) SPECIAL RULE FOR CHANGES IN SERVICES 1
747	747	AND CAPITAL CONTRIBUTIONS .—In the case of an 2
748	748	interest in a partnership which was not an invest-3
749	749	ment services partnership interest and which, by 4
750	750	reason of a change in the services with respect to as-5
751	751	sets held (directly or indirectly) by the partnership 6
752	752	or by reason of a change in the capital contributions 7
753	753	to such partnership, becomes an investment services 8
754	754	partnership interest, the qualified capital interest of 9
755	755	the holder of such partnership interest immediately 10
756	756	after such change shall not, for purposes of this sub-11
757	757	section, be less than the fair market value of such 12
758	758	interest (determined immediately before such 13
759	759	change). 14
760	760	‘‘(4) S
761	761	PECIAL RULE FOR TIERED PARTNER -15
762	762	SHIPS.—Except as otherwise provided by the Sec-16
763	763	retary, in the case of tiered partnerships, all items 17
764	764	which are allocated in a manner which meets the re-18
765	765	quirements of paragraph (1) to qualified capital in-19
766	766	terests in a lower-tier partnership shall retain such 20
767	767	character to the extent allocated on the basis of 21
768	768	qualified capital interests in any upper-tier partner-22
769	769	ship. 23
770	770	‘‘(5) E
771	771	XCEPTION FOR NO -SELF-CHARGED 24
772	772	CARRY AND MANAGEMENT FEE PROVISIONS .—Ex-25
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775	775	•HR 2621 IH
776	776	cept as otherwise provided by the Secretary, an in-1
777	777	terest shall not fail to be treated as satisfying the 2
778	778	requirement of paragraph (1)(A) merely because the 3
779	779	allocations made by the partnership to such interest 4
780	780	do not reflect the cost of services described in sub-5
781	781	section (c)(2) which are provided (directly or indi-6
782	782	rectly) to the partnership by the holder of such in-7
783	783	terest (or a related person). 8
784	784	‘‘(6) S
785	785	PECIAL RULE FOR DISPOSITIONS .—In the 9
786	786	case of any investment services partnership interest 10
787	787	any portion of which is a qualified capital interest, 11
788	788	subsection (b) shall not apply to so much of any 12
789	789	gain or loss as bears the same proportion to the en-13
790	790	tire amount of such gain or loss as— 14
791	791	‘‘(A) the distributive share of gain or loss 15
792	792	that would have been allocated to the qualified 16
793	793	capital interest (consistent with the require-17
794	794	ments of paragraph (1)) if the partnership had 18
795	795	sold all of its assets at fair market value imme-19
796	796	diately before the disposition, bears to 20
797	797	‘‘(B) the distributive share of gain or loss 21
798	798	that would have been so allocated to the invest-22
799	799	ment services partnership interest of which such 23
800	800	qualified capital interest is a part. 24
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803	803	•HR 2621 IH
804	804	‘‘(7) QUALIFIED CAPITAL INTEREST .—For pur-1
805	805	poses of this section— 2
806	806	‘‘(A) I
807	807	N GENERAL.—The term ‘qualified 3
808	808	capital interest’ means so much of a partner’s 4
809	809	interest in the capital of the partnership as is 5
810	810	attributable to— 6
811	811	‘‘(i) the fair market value of any 7
812	812	money or other property contributed to the 8
813	813	partnership in exchange for such interest 9
814	814	(determined without regard to section 10
815	815	752(a)), 11
816	816	‘‘(ii) any amounts which have been in-12
817	817	cluded in gross income under section 83 13
818	818	with respect to the transfer of such inter-14
819	819	est, and 15
820	820	‘‘(iii) the excess (if any) of— 16
821	821	‘‘(I) any items of income and 17
822	822	gain taken into account under section 18
823	823	702 with respect to such interest, over 19
824	824	‘‘(II) any items of deduction and 20
825	825	loss so taken into account. 21
826	826	‘‘(B) A
827	827	DJUSTMENT TO QUALIFIED CAPITAL 22
828	828	INTEREST.— 23
829	829	‘‘(i) D
830	830	ISTRIBUTIONS AND LOSSES .— 24
831	831	The qualified capital interest shall be re-25
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833	833	ssavage on LAPJG3WLY3PROD with BILLS 28
834	834	•HR 2621 IH
835	835	duced by distributions from the partner-1
836	836	ship with respect to such interest and by 2
837	837	the excess (if any) of the amount described 3
838	838	in subparagraph (A)(iii)(II) over the 4
839	839	amount described in subparagraph 5
840	840	(A)(iii)(I). 6
841	841	‘‘(ii) S
842	842	PECIAL RULE FOR CONTRIBU -7
843	843	TIONS OF PROPERTY.—In the case of any 8
844	844	contribution of property described in sub-9
845	845	paragraph (A)(i) with respect to which the 10
846	846	fair market value of such property is not 11
847	847	equal to the adjusted basis of such prop-12
848	848	erty immediately before such contribution, 13
849	849	proper adjustments shall be made to the 14
850	850	qualified capital interest to take into ac-15
851	851	count such difference consistent with such 16
852	852	regulations or other guidance as the Sec-17
853	853	retary may provide. 18
854	854	‘‘(C) M
855	855	ERGERS, CONSOLIDATIONS, ETC., 19
856	856	DISREGARDED.—No increase or decrease in the 20
857	857	qualified capital interest of any partner shall re-21
858	858	sult from a merger, consolidation, or division 22
859	859	described in section 708, or any similar trans-23
860	860	action. 24
861	861	‘‘(8) T
862	862	REATMENT OF CERTAIN LOANS .— 25
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865	865	•HR 2621 IH
866	866	‘‘(A) PROCEEDS OF PARTNERSHIP LOANS 1
867	867	NOT TREATED AS QUALIFIED CAPITAL INTER -2
868	868	EST OF SERVICE PROVIDING PARTNERS .—For 3
869	869	purposes of this subsection, an investment serv-4
870	870	ices partnership interest shall not be treated as 5
871	871	a qualified capital interest to the extent that 6
872	872	such interest is acquired in connection with the 7
873	873	proceeds of any loan or other advance made or 8
874	874	guaranteed, directly or indirectly, by any other 9
875	875	partner or the partnership (or any person re-10
876	876	lated to any such other partner or the partner-11
877	877	ship). The preceding sentence shall not apply to 12
878	878	the extent the loan or other advance is repaid 13
879	879	before the date of the enactment of this section 14
880	880	unless such repayment is made with the pro-15
881	881	ceeds of a loan or other advance described in 16
882	882	the preceding sentence. 17
883	883	‘‘(B) R
884	884	EDUCTION IN ALLOCATIONS TO 18
885	885	QUALIFIED CAPITAL INTERESTS FOR LOANS 19
886	886	FROM NONSERVICE -PROVIDING PARTNERS TO 20
887	887	THE PARTNERSHIP.—For purposes of this sub-21
888	888	section, any loan or other advance to the part-22
889	889	nership made or guaranteed, directly or indi-23
890	890	rectly, by a partner not providing services de-24
891	891	scribed in subsection (c)(2) to the partnership 25
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894	894	•HR 2621 IH
895	895	(or any person related to such partner) shall be 1
896	896	taken into account in determining the qualified 2
897	897	capital interests of the partners in the partner-3
898	898	ship. 4
899	899	‘‘(9) S
900	900	PECIAL RULE FOR QUALIFIED FAMILY 5
901	901	PARTNERSHIPS.— 6
902	902	‘‘(A) I
903	903	N GENERAL.—In the case of any 7
904	904	specified family partnership interest, paragraph 8
905	905	(1)(A) shall be applied without regard to the 9
906	906	phrase ‘and who are not related to the partner 10
907	907	holding the qualified capital interest’. 11
908	908	‘‘(B) S
909	909	PECIFIED FAMILY PARTNERSHIP IN -12
910	910	TEREST.—For purposes of this paragraph, the 13
911	911	term ‘specified family partnership interest’ 14
912	912	means any investment services partnership in-15
913	913	terest if— 16
914	914	‘‘(i) such interest is an interest in a 17
915	915	qualified family partnership, 18
916	916	‘‘(ii) such interest is held by a natural 19
917	917	person or by a trust with respect to which 20
918	918	each beneficiary is a grantor or a person 21
919	919	whose relationship to the grantor is de-22
920	920	scribed in section 267(b)(1), and 23
921	921	‘‘(iii) all other interests in such quali-24
922	922	fied family partnership with respect to 25
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924	924	ssavage on LAPJG3WLY3PROD with BILLS 31
925	925	•HR 2621 IH
926	926	which significant allocations are made 1
927	927	(within the meaning of paragraph (1)(B) 2
928	928	and in comparison to the allocations made 3
929	929	to the interest described in clause (ii)) are 4
930	930	held by persons who— 5
931	931	‘‘(I) are related to the natural 6
932	932	person or trust referred to in clause 7
933	933	(ii), or 8
934	934	‘‘(II) provide services described 9
935	935	in subsection (c)(2). 10
936	936	‘‘(C) Q
937	937	UALIFIED FAMILY PARTNERSHIP .— 11
938	938	For purposes of this paragraph, the term 12
939	939	‘qualified family partnership’ means any part-13
940	940	nership if— 14
941	941	‘‘(i) all of the capital and profits in-15
942	942	terests of such partnership are held by— 16
943	943	‘‘(I) specified family members, 17
944	944	‘‘(II) any person closely related 18
945	945	(within the meaning of subsection 19
946	946	(c)(3)(C)(ii)) to a specified family 20
947	947	member, or 21
948	948	‘‘(III) any other person (not de-22
949	949	scribed in subclause (I) or (II)) if 23
950	950	such interest is an investment services 24
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953	953	•HR 2621 IH
954	954	partnership interest with respect to 1
955	955	such person, and 2
956	956	‘‘(ii) such partnership does not hold 3
957	957	itself out to the public as an investment 4
958	958	advisor. 5
959	959	‘‘(D) S
960	960	PECIFIED FAMILY MEMBERS .—For 6
961	961	purposes of subparagraph (C), individuals shall 7
962	962	be treated as specified family members if such 8
963	963	individuals would be treated as one person 9
964	964	under the rules of section 1361(c)(1) if the ap-10
965	965	plicable date (within the meaning of subpara-11
966	966	graph (B)(iii) thereof) were the latest of— 12
967	967	‘‘(i) the date of the establishment of 13
968	968	the partnership, 14
969	969	‘‘(ii) the earliest date that the com-15
970	970	mon ancestor holds a capital or profits in-16
971	971	terest in the partnership, or 17
972	972	‘‘(iii) the date of the enactment of this 18
973	973	section. 19
974	974	‘‘(e) O
975	975	THERINCOME AND GAIN INCONNECTION 20
976	976	W
977	977	ITHINVESTMENTMANAGEMENTSERVICES.— 21
978	978	‘‘(1) I
979	979	N GENERAL.—If— 22
980	980	‘‘(A) a person performs (directly or indi-23
981	981	rectly) investment management services for any 24
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984	984	•HR 2621 IH
985	985	investment entity or special purpose acquisition 1
986	986	company, 2
987	987	‘‘(B) such person holds (directly or indi-3
988	988	rectly) a disqualified interest with respect to 4
989	989	such entity or such company (as the case may 5
990	990	be), and 6
991	991	‘‘(C) the value of such interest (or pay-7
992	992	ments thereunder) is substantially related to 8
993	993	the amount of income or gain (whether or not 9
994	994	realized) from the assets with respect to which 10
995	995	the investment management services are per-11
996	996	formed, 12
997	997	any income or gain with respect to such interest 13
998	998	shall be treated as ordinary income. Rules similar to 14
999	999	the rules of subsections (a)(5) and (d) shall apply 15
1000	1000	for purposes of this subsection. 16
1001	1001	‘‘(2) D
1002	1002	EFINITIONS.—For purposes of this sub-17
1003	1003	section— 18
1004	1004	‘‘(A) D
1005	1005	ISQUALIFIED INTEREST.— 19
1006	1006	‘‘(i) I
1007	1007	N GENERAL.—The term ‘dis-20
1008	1008	qualified interest’ means, with respect to 21
1009	1009	any investment entity— 22
1010	1010	‘‘(I) any interest in such entity 23
1011	1011	other than indebtedness, 24
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1014	1014	•HR 2621 IH
1015	1015	‘‘(II) convertible or contingent 1
1016	1016	debt of such entity, 2
1017	1017	‘‘(III) any option or other right 3
1018	1018	to acquire property described in sub-4
1019	1019	clause (I) or (II), and 5
1020	1020	‘‘(IV) any derivative instrument 6
1021	1021	entered into (directly or indirectly) 7
1022	1022	with such entity or any investor in 8
1023	1023	such entity. 9
1024	1024	‘‘(ii) E
1025	1025	XCEPTIONS.—Such term shall 10
1026	1026	not include— 11
1027	1027	‘‘(I) a partnership interest, 12
1028	1028	‘‘(II) except as provided by the 13
1029	1029	Secretary, any interest in a taxable 14
1030	1030	corporation (other than a special pur-15
1031	1031	pose acquisition company), and 16
1032	1032	‘‘(III) except as provided by the 17
1033	1033	Secretary, stock in an S corporation. 18
1034	1034	‘‘(B) T
1035	1035	AXABLE CORPORATION .—The term 19
1036	1036	‘taxable corporation’ means— 20
1037	1037	‘‘(i) a domestic C corporation, or 21
1038	1038	‘‘(ii) a foreign corporation substan-22
1039	1039	tially all of the income of which is— 23
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1042	1042	•HR 2621 IH
1043	1043	‘‘(I) effectively connected with 1
1044	1044	the conduct of a trade or business in 2
1045	1045	the United States, or 3
1046	1046	‘‘(II) subject to a comprehensive 4
1047	1047	foreign income tax (as defined in sec-5
1048	1048	tion 457A(d)(2)). 6
1049	1049	‘‘(C) I
1050	1050	NVESTMENT MANAGEMENT SERV -7
1051	1051	ICES.—The term ‘investment management serv-8
1052	1052	ices’ means a substantial quantity of any of the 9
1053	1053	services described in subsection (c)(2). 10
1054	1054	‘‘(D) I
1055	1055	NVESTMENT ENTITY .—The term ‘in-11
1056	1056	vestment entity’ means any entity which, if it 12
1057	1057	were a partnership, would be an investment 13
1058	1058	partnership. 14
1059	1059	‘‘(E) S
1060	1060	PECIAL PURPOSE ACQUISITION COM -15
1061	1061	PANY.—The term ‘special purpose acquisition 16
1062	1062	company’ means any corporation that— 17
1063	1063	‘‘(i) is formed for the purpose of ac-18
1064	1064	quiring a privately held company, 19
1065	1065	‘‘(ii) is publicly traded on an estab-20
1066	1066	lished securities market or its interests are 21
1067	1067	readily tradable on a secondary market (or 22
1068	1068	the substantial equivalent thereof), and 23
1069	1069	‘‘(iii) is required to report an acquisi-24
1070	1070	tion under Item 2.01 or make a disclosure 25
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1073	1073	•HR 2621 IH
1074	1074	under Item 5.06 of Form 8-K (or any suc-1
1075	1075	cessor form) with the Securities and Ex-2
1076	1076	change Commission. 3
1077	1077	‘‘(f) E
1078	1078	XCEPTION FORDOMESTICC CORPORATIONS.— 4
1079	1079	Except as otherwise provided by the Secretary, in the case 5
1080	1080	of a domestic C corporation (other than a special purpose 6
1081	1081	acquisition company, as defined in subsection (e)(2)(E))— 7
1082	1082	‘‘(1) subsections (a) and (b) shall not apply to 8
1083	1083	any item allocated to such corporation with respect 9
1084	1084	to any investment services partnership interest (or 10
1085	1085	to any gain or loss with respect to the disposition of 11
1086	1086	such an interest), and 12
1087	1087	‘‘(2) subsection (e) shall not apply. 13
1088	1088	‘‘(g) R
1089	1089	EGULATIONS.—The Secretary shall prescribe 14
1090	1090	such regulations or other guidance as is necessary or ap-15
1091	1091	propriate to carry out the purposes of this section, includ-16
1092	1092	ing regulations or other guidance to— 17
1093	1093	‘‘(1) require such reporting and recordkeeping 18
1094	1094	by any person in such manner and at such time as 19
1095	1095	the Secretary may prescribe for purposes of enabling 20
1096	1096	the partnership to meet the requirements of section 21
1097	1097	6031 with respect to any item described in section 22
1098	1098	702(a)(9), 23
1099	1099	‘‘(2) provide modifications to the application of 24
1100	1100	this section (including treating related persons as 25
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1103	1103	•HR 2621 IH
1104	1104	not related to one another) to the extent such modi-1
1105	1105	fication is consistent with the purposes of this sec-2
1106	1106	tion, 3
1107	1107	‘‘(3) prevent the avoidance of the purposes of 4
1108	1108	this section (including through the use of qualified 5
1109	1109	family partnerships), and 6
1110	1110	‘‘(4) coordinate this section with the other pro-7
1111	1111	visions of this title. 8
1112	1112	‘‘(h) C
1113	1113	ROSSREFERENCE.—For 40 percent penalty on 9
1114	1114	certain underpayments due to the avoidance of this sec-10
1115	1115	tion, see section 6662.’’. 11
1116	1116	(b) A
1117	1117	PPLICATION OFSECTION751 TOINDIRECTDIS-12
1118	1118	POSITIONS OFINVESTMENTSERVICESPARTNERSHIPIN-13
1119	1119	TERESTS.— 14
1120	1120	(1) I
1121	1121	N GENERAL.—Subsection (a) of section 15
1122	1122	751 is amended by striking ‘‘or’’ at the end of para-16
1123	1123	graph (1), by inserting ‘‘or’’ at the end of paragraph 17
1124	1124	(2), and by inserting after paragraph (2) the fol-18
1125	1125	lowing new paragraph: 19
1126	1126	‘‘(3) investment services partnership interests 20
1127	1127	held by the partnership,’’. 21
1128	1128	(2) C
1129	1129	ERTAIN DISTRIBUTIONS TREATED AS 22
1130	1130	SALES OR EXCHANGES .—Subparagraph (A) of sec-23
1131	1131	tion 751(b)(1) is amended by striking ‘‘or’’ at the 24
1132	1132	end of clause (i), by inserting ‘‘or’’ at the end of 25
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1135	1135	•HR 2621 IH
1136	1136	clause (ii), and by inserting after clause (ii) the fol-1
1137	1137	lowing new clause: 2
1138	1138	‘‘(iii) investment services partnership 3
1139	1139	interests held by the partnership,’’. 4
1140	1140	(3) A
1141	1141	PPLICATION OF SPECIAL RULES IN THE 5
1142	1142	CASE OF TIERED PARTNERSHIPS .—Subsection (f) of 6
1143	1143	section 751 is amended— 7
1144	1144	(A) by striking ‘‘or’’ at the end of para-8
1145	1145	graph (1), by inserting ‘‘or’’ at the end of para-9
1146	1146	graph (2), and by inserting after paragraph (2) 10
1147	1147	the following new paragraph: 11
1148	1148	‘‘(3) an investment services partnership interest 12
1149	1149	held by the partnership,’’, and 13
1150	1150	(B) by striking ‘‘partner.’’ and inserting 14
1151	1151	‘‘partner (other than a partnership in which it 15
1152	1152	holds an investment services partnership inter-16
1153	1153	est).’’. 17
1154	1154	(4) I
1155	1155	NVESTMENT SERVICES PARTNERSHIP IN -18
1156	1156	TERESTS; QUALIFIED CAPITAL INTERESTS .—Section 19
1157	1157	751 is amended by adding at the end the following 20
1158	1158	new subsection: 21
1159	1159	‘‘(g) I
1160	1160	NVESTMENTSERVICESPARTNERSHIPINTER-22
1161	1161	ESTS.—For purposes of this section— 23
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1165	1165	‘‘(1) IN GENERAL.—The term ‘investment serv-1
1166	1166	ices partnership interest’ has the meaning given 2
1167	1167	such term by section 710(c). 3
1168	1168	‘‘(2) A
1169	1169	DJUSTMENTS FOR QUALIFIED CAPITAL 4
1170	1170	INTERESTS.—The amount to which subsection (a) 5
1171	1171	applies by reason of paragraph (3) thereof shall not 6
1172	1172	include so much of such amount as is attributable 7
1173	1173	to any portion of the investment services partnership 8
1174	1174	interest which is a qualified capital interest (deter-9
1175	1175	mined under rules similar to the rules of section 10
1176	1176	710(d)). 11
1177	1177	‘‘(3) E
1178	1178	XCEPTION FOR PUBLICLY TRADED PART -12
1179	1179	NERSHIPS.—Except as otherwise provided by the 13
1180	1180	Secretary, in the case of an exchange of an interest 14
1181	1181	in a publicly traded partnership (as defined in sec-15
1182	1182	tion 7704) to which subsection (a) applies— 16
1183	1183	‘‘(A) this section shall be applied without 17
1184	1184	regard to subsections (a)(3), (b)(1)(A)(iii), and 18
1185	1185	(f)(3), and 19
1186	1186	‘‘(B) such partnership shall be treated as 20
1187	1187	owning its proportionate share of the property 21
1188	1188	of any other partnership in which it is a part-22
1189	1189	ner. 23
1190	1190	‘‘(4) R
1191	1191	ECOGNITION OF GAINS .—Any gain with 24
1192	1192	respect to which subsection (a) applies by reason of 25
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1195	1195	•HR 2621 IH
1196	1196	paragraph (3) thereof shall be recognized notwith-1
1197	1197	standing any other provision of this title. 2
1198	1198	‘‘(5) C
1199	1199	OORDINATION WITH INVENTORY 3
1200	1200	ITEMS.—An investment services partnership interest 4
1201	1201	held by the partnership shall not be treated as an 5
1202	1202	inventory item of the partnership. 6
1203	1203	‘‘(6) P
1204	1204	REVENTION OF DOUBLE COUNTING .— 7
1205	1205	Under regulations or other guidance prescribed by 8
1206	1206	the Secretary, subsection (a)(3) shall not apply with 9
1207	1207	respect to any amount to which section 710 applies. 10
1208	1208	‘‘(7) V
1209	1209	ALUATION METHODS .—The Secretary 11
1210	1210	shall prescribe regulations or other guidance which 12
1211	1211	provide the acceptable methods for valuing invest-13
1212	1212	ment services partnership interests for purposes of 14
1213	1213	this section.’’. 15
1214	1214	(c) T
1215	1215	REATMENT FOR PURPOSES OF SECTION 16
1216	1216	7704.—Subsection (d) of section 7704 is amended by add-17
1217	1217	ing at the end the following new paragraph: 18
1218	1218	‘‘(6) I
1219	1219	NCOME FROM CERTAIN CARRIED INTER -19
1220	1220	ESTS NOT QUALIFIED.— 20
1221	1221	‘‘(A) I
1222	1222	N GENERAL.—Specified carried in-21
1223	1223	terest income shall not be treated as qualifying 22
1224	1224	income. 23
1225	1225	‘‘(B) S
1226	1226	PECIFIED CARRIED INTEREST IN -24
1227	1227	COME.—For purposes of this paragraph— 25
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1230	1230	•HR 2621 IH
1231	1231	‘‘(i) IN GENERAL.—The term ‘speci-1
1232	1232	fied carried interest income’ means— 2
1233	1233	‘‘(I) any item of income or gain 3
1234	1234	allocated to an investment services 4
1235	1235	partnership interest (as defined in 5
1236	1236	section 710(c)) held by the partner-6
1237	1237	ship, 7
1238	1238	‘‘(II) any gain on the disposition 8
1239	1239	of an investment services partnership 9
1240	1240	interest (as so defined) or a partner-10
1241	1241	ship interest to which (in the hands of 11
1242	1242	the partnership) section 751 applies, 12
1243	1243	and 13
1244	1244	‘‘(III) any income or gain taken 14
1245	1245	into account by the partnership under 15
1246	1246	subsection (b)(4) or (e) of section 16
1247	1247	710. 17
1248	1248	‘‘(ii) E
1249	1249	XCEPTION FOR QUALIFIED CAP -18
1250	1250	ITAL INTERESTS.—A rule similar to the 19
1251	1251	rule of section 710(d) shall apply for pur-20
1252	1252	poses of clause (i). 21
1253	1253	‘‘(C) C
1254	1254	OORDINATION WITH OTHER PROVI -22
1255	1255	SIONS.—Subparagraph (A) shall not apply to 23
1256	1256	any item described in paragraph (1)(E) (or so 24
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1259	1259	•HR 2621 IH
1260	1260	much of paragraph (1)(F) as relates to para-1
1261	1261	graph (1)(E)). 2
1262	1262	‘‘(D) S
1263	1263	PECIAL RULES FOR CERTAIN PART -3
1264	1264	NERSHIPS.— 4
1265	1265	‘‘(i) C
1266	1266	ERTAIN PARTNERSHIPS OWNED 5
1267	1267	BY REAL ESTATE INVESTMENT TRUSTS .— 6
1268	1268	Subparagraph (A) shall not apply in the 7
1269	1269	case of a partnership which meets each of 8
1270	1270	the following requirements: 9
1271	1271	‘‘(I) Such partnership is treated 10
1272	1272	as publicly traded under this section 11
1273	1273	solely by reason of interests in such 12
1274	1274	partnership being convertible into in-13
1275	1275	terests in a real estate investment 14
1276	1276	trust which is publicly traded. 15
1277	1277	‘‘(II) Fifty percent or more of 16
1278	1278	the capital and profits interests of 17
1279	1279	such partnership are owned, directly 18
1280	1280	or indirectly, at all times during the 19
1281	1281	taxable year by such real estate in-20
1282	1282	vestment trust (determined with the 21
1283	1283	application of section 267(c)). 22
1284	1284	‘‘(III) Such partnership meets 23
1285	1285	the requirements of paragraphs (2), 24
1286	1286	(3), and (4) of section 856(c). 25
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1290	1290	‘‘(ii) CERTAIN PARTNERSHIPS OWN -1
1291	1291	ING OTHER PUBLICLY TRADED PARTNER -2
1292	1292	SHIPS.—Subparagraph (A) shall not apply 3
1293	1293	in the case of a partnership which meets 4
1294	1294	each of the following requirements: 5
1295	1295	‘‘(I) Substantially all of the as-6
1296	1296	sets of such partnership consist of in-7
1297	1297	terests in one or more publicly traded 8
1298	1298	partnerships (determined without re-9
1299	1299	gard to subsection (b)(2)). 10
1300	1300	‘‘(II) Substantially all of the in-11
1301	1301	come of such partnership is ordinary 12
1302	1302	income or section 1231 gain (as de-13
1303	1303	fined in section 1231(a)(3)). 14
1304	1304	‘‘(E) T
1305	1305	RANSITIONAL RULE .—Subpara-15
1306	1306	graph (A) shall not apply to any taxable year 16
1307	1307	of the partnership beginning before the date 17
1308	1308	which is 10 years after the date of the enact-18
1309	1309	ment of this paragraph.’’. 19
1310	1310	(d) I
1311	1311	MPOSITION OF PENALTY ON UNDERPAY-20
1312	1312	MENTS.— 21
1313	1313	(1) I
1314	1314	N GENERAL.—Subsection (b) of section 22
1315	1315	6662 is amended by inserting after paragraph (10) 23
1316	1316	the following new paragraph: 24
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1320	1320	‘‘(11) The application of section 710(e) or the 1
1321	1321	regulations or other guidance prescribed under sec-2
1322	1322	tion 710(g) to prevent the avoidance of the purposes 3
1323	1323	of section 710.’’. 4
1324	1324	(2) A
1325	1325	MOUNT OF PENALTY .— 5
1326	1326	(A) I
1327	1327	N GENERAL.—Section 6662 is amend-6
1328	1328	ed by adding at the end the following new sub-7
1329	1329	section: 8
1330	1330	‘‘(m) I
1331	1331	NCREASE INPENALTY INCASE OFPROPERTY 9
1332	1332	T
1333	1333	RANSFERRED FOR INVESTMENT MANAGEMENT SERV-10
1334	1334	ICES.—In the case of any portion of an underpayment to 11
1335	1335	which this section applies by reason of subsection (b)(10), 12
1336	1336	subsection (a) shall be applied with respect to such portion 13
1337	1337	by substituting ‘40 percent’ for ‘20 percent’.’’. 14
1338	1338	(B) C
1339	1339	ONFORMING AMENDMENT .—Subpara-15
1340	1340	graph (B) of section 6662A(e)(2) is amended 16
1341	1341	by striking ‘‘or (i)’’ and inserting ‘‘, (i), or 17
1342	1342	(m)’’. 18
1343	1343	(3) S
1344	1344	PECIAL RULES FOR APPLICATION OF REA -19
1345	1345	SONABLE CAUSE EXCEPTION .—Subsection (c) of sec-20
1346	1346	tion 6664 is amended— 21
1347	1347	(A) by redesignating paragraphs (3) and 22
1348	1348	(4) as paragraphs (4) and (5), respectively; 23
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1352	1352	(B) by striking ‘‘paragraph (3)’’ in para-1
1353	1353	graph (5)(A), as so redesignated, and inserting 2
1354	1354	‘‘paragraph (4)’’; and 3
1355	1355	(C) by inserting after paragraph (2) the 4
1356	1356	following new paragraph: 5
1357	1357	‘‘(3) S
1358	1358	PECIAL RULE FOR UNDERPAYMENTS AT -6
1359	1359	TRIBUTABLE TO INVESTMENT MANAGEMENT SERV -7
1360	1360	ICES.— 8
1361	1361	‘‘(A) I
1362	1362	N GENERAL.—Paragraph (1) shall 9
1363	1363	not apply to any portion of an underpayment to 10
1364	1364	which section 6662 applies by reason of sub-11
1365	1365	section (b)(11) unless— 12
1366	1366	‘‘(i) the relevant facts affecting the 13
1367	1367	tax treatment of the item are adequately 14
1368	1368	disclosed, 15
1369	1369	‘‘(ii) there is or was substantial au-16
1370	1370	thority for such treatment, and 17
1371	1371	‘‘(iii) the taxpayer reasonably believed 18
1372	1372	that such treatment was more likely than 19
1373	1373	not the proper treatment. 20
1374	1374	‘‘(B) R
1375	1375	ULES RELATING TO REASONABLE 21
1376	1376	BELIEF.—Rules similar to the rules of sub-22
1377	1377	section (d)(4) shall apply for purposes of sub-23
1378	1378	paragraph (A)(iii).’’. 24
1379	1379	VerDate Sep 11 2014 22:53 May 02, 2025 Jkt 059200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H2621.IH H2621
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1381	1381	•HR 2621 IH
1382	1382	(e) INCOME ANDLOSSFROMINVESTMENTSERVICES 1
1383	1383	P
1384	1384	ARTNERSHIPINTERESTSTAKENINTOACCOUNT INDE-2
1385	1385	TERMININGNETEARNINGSFROMSELF-EMPLOYMENT.— 3
1386	1386	(1) I
1387	1387	NTERNAL REVENUE CODE .— 4
1388	1388	(A) I
1389	1389	N GENERAL.—Section 1402(a) is 5
1390	1390	amended by striking ‘‘and’’ at the end of para-6
1391	1391	graph (16), by striking the period at the end of 7
1392	1392	paragraph (17) and inserting ‘‘; and’’, and by 8
1393	1393	inserting after paragraph (17) the following 9
1394	1394	new paragraph: 10
1395	1395	‘‘(18) notwithstanding the preceding provisions 11
1396	1396	of this subsection, in the case of any individual en-12
1397	1397	gaged in the trade or business of providing services 13
1398	1398	described in section 710(c)(2) with respect to any 14
1399	1399	entity, investment services partnership income or 15
1400	1400	loss (as defined in subsection (m)) of such individual 16
1401	1401	with respect to such entity shall be taken into ac-17
1402	1402	count in determining the net earnings from self-em-18
1403	1403	ployment of such individual.’’. 19
1404	1404	(B) I
1405	1405	NVESTMENT SERVICES PARTNERSHIP 20
1406	1406	INCOME OR LOSS.—Section 1402 is amended by 21
1407	1407	adding at the end the following new subsection: 22
1408	1408	‘‘(m) I
1409	1409	NVESTMENTSERVICESPARTNERSHIPINCOME 23
1410	1410	ORLOSS.—For purposes of subsection (a)— 24
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1413	1413	•HR 2621 IH
1414	1414	‘‘(1) IN GENERAL.—The term ‘investment serv-1
1415	1415	ices partnership income or loss’ means, with respect 2
1416	1416	to any investment services partnership interest (as 3
1417	1417	defined in section 710(c)) or disqualified interest (as 4
1418	1418	defined in section 710(e)), the net of— 5
1419	1419	‘‘(A) the amounts treated as ordinary in-6
1420	1420	come or ordinary loss under subsections (b) and 7
1421	1421	(e) of section 710 with respect to such interest, 8
1422	1422	‘‘(B) all items of income, gain, loss, and 9
1423	1423	deduction allocated to such interest, and 10
1424	1424	‘‘(C) the amounts treated as realized from 11
1425	1425	the sale or exchange of property other than a 12
1426	1426	capital asset under section 751 with respect to 13
1427	1427	such interest. 14
1428	1428	‘‘(2) E
1429	1429	XCEPTION FOR QUALIFIED CAPITAL IN -15
1430	1430	TERESTS.—A rule similar to the rule of section 16
1431	1431	710(d) shall apply for purposes of applying para-17
1432	1432	graph (1)(B).’’. 18
1433	1433	(2) S
1434	1434	OCIAL SECURITY ACT.—Section 211(a) of 19
1435	1435	the Social Security Act is amended by striking 20
1436	1436	‘‘and’’ at the end of paragraph (15), by striking the 21
1437	1437	period at the end of paragraph (16) and inserting ‘‘; 22
1438	1438	and’’, and by inserting after paragraph (16) the fol-23
1439	1439	lowing new paragraph: 24
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1442	1442	•HR 2621 IH
1443	1443	‘‘(17) Notwithstanding the preceding provisions 1
1444	1444	of this subsection, in the case of any individual en-2
1445	1445	gaged in the trade or business of providing services 3
1446	1446	described in section 710(c)(2) of the Internal Rev-4
1447	1447	enue Code of 1986 with respect to any entity, invest-5
1448	1448	ment services partnership income or loss (as defined 6
1449	1449	in section 1402(m) of such Code) shall be taken into 7
1450	1450	account in determining the net earnings from self- 8
1451	1451	employment of such individual.’’. 9
1452	1452	(f) S
1453	1453	EPARATEACCOUNTING BYPARTNER.—Section 10
1454	1454	702(a) is amended by striking ‘‘and’’ at the end of para-11
1455	1455	graph (7), by striking the period at the end of paragraph 12
1456	1456	(8) and inserting ‘‘, and’’, and by inserting after para-13
1457	1457	graph (8) the following: 14
1458	1458	‘‘(9) any amount treated as ordinary income or 15
1459	1459	loss under subsection (a), (b), or (e) of section 16
1460	1460	710.’’. 17
1461	1461	(g) C
1462	1462	ONFORMINGAMENDMENTS.— 18
1463	1463	(1) Subsection (d) of section 731 is amended by 19
1464	1464	inserting ‘‘section 710(b)(4) (relating to distribu-20
1465	1465	tions of partnership property),’’ after ‘‘to the extent 21
1466	1466	otherwise provided by’’. 22
1467	1467	(2) Section 741 is amended by inserting ‘‘or 23
1468	1468	section 710 (relating to special rules for partners 24
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1471	1471	•HR 2621 IH
1472	1472	providing investment management services to part-1
1473	1473	nerships)’’ before the period at the end. 2
1474	1474	(3) The table of sections for part I of sub-3
1475	1475	chapter K of chapter 1 is amended by adding at the 4
1476	1476	end the following new item: 5
1477	1477	‘‘Sec. 710. Special rules for partners providing investment management services
1478	1478	to partnerships.’’.
1479	1479	(4)(A) Part IV of subchapter O of chapter 1 is 6
1480	1480	amended by striking section 1061. 7
1481	1481	(B) The table of sections for part IV of sub-8
1482	1482	chapter O of chapter 1 is amended by striking the 9
1483	1483	item relating to section 1061. 10
1484	1484	(h) E
1485	1485	FFECTIVEDATE.— 11
1486	1486	(1) I
1487	1487	N GENERAL.—Except as otherwise pro-12
1488	1488	vided in this subsection, the amendments made by 13
1489	1489	this section shall apply to taxable years ending after 14
1490	1490	the date of the enactment of this Act. 15
1491	1491	(2) P
1492	1492	ARTNERSHIP TAXABLE YEARS WHICH IN -16
1493	1493	CLUDE EFFECTIVE DATE .—In applying section 17
1494	1494	710(a) of the Internal Revenue Code of 1986 (as 18
1495	1495	added by this section) in the case of any partnership 19
1496	1496	taxable year which includes the date of the enact-20
1497	1497	ment of this Act, the amount of the net capital gain 21
1498	1498	referred to in such section shall be treated as being 22
1499	1499	the lesser of the net capital gain for the entire part-23
1500	1500	nership taxable year or the net capital gain deter-24
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1503	1503	•HR 2621 IH
1504	1504	mined by only taking into account items attributable 1
1505	1505	to the portion of the partnership taxable year which 2
1506	1506	is after such date. 3
1507	1507	(3) D
1508	1508	ISPOSITIONS OF PARTNERSHIP INTER -4
1509	1509	ESTS.— 5
1510	1510	(A) I
1511	1511	N GENERAL.—Section 710(b) of such 6
1512	1512	Code (as added by this section) shall apply to 7
1513	1513	dispositions and distributions after the date of 8
1514	1514	the enactment of this Act. 9
1515	1515	(B) I
1516	1516	NDIRECT DISPOSITIONS.—The amend-10
1517	1517	ments made by subsection (b) shall apply to 11
1518	1518	transactions after the date of the enactment of 12
1519	1519	this Act. 13
1520	1520	(4) O
1521	1521	THER INCOME AND GAIN IN CONNECTION 14
1522	1522	WITH INVESTMENT MANAGEMENT SERVICES .—Sec-15
1523	1523	tion 710(e) of such Code (as added by this section) 16
1524	1524	shall take effect on the date of the enactment of this 17
1525	1525	Act. 18
1526	1526	Æ
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