H.R.2676 - To amend the Internal Revenue Code of 1986 to provide for the nonrecognition of gain for sale of stock to certain farmers' cooperatives, and for other purposes.104th Congress (1995-1996)
|Sponsor:||Rep. Roberts, Pat [R-KS-1] (Introduced 11/20/1995)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 11/20/1995 Referred to the House Committee on Ways and Means. (All Actions)|
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Text: H.R.2676 — 104th Congress (1995-1996)All Information (Except Text)
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Introduced in House (11/20/1995)
[Congressional Bills 104th Congress] [From the U.S. Government Printing Office] [H.R. 2676 Introduced in House (IH)] 1st Session H. R. 2676 To amend the Internal Revenue Code of 1986 to provide for the nonrecognition of gain for sale of stock to certain farmers' cooperatives, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES November 20, 1995 Mr. Roberts (for himself, Mr. Stenholm, Mrs. Chenoweth, Mr. Minge, Mr. Peterson of Minnesota, Mr. Pomeroy, and Mr. Crapo) 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 provide for the nonrecognition of gain for sale of stock to certain farmers' cooperatives, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. NONRECOGNITION OF GAIN ON SALE OF STOCK TO CERTAIN FARMERS' COOPERATIVES. (a) Application of Section 1042 to Certain Farmers' Cooperatives.-- Section 1042 of the Internal Revenue Code of 1986 (relating to sales of stock to employee stock ownership plans or certain cooperatives) is amended by adding at the end the following new subsection: ``(g) Application of Section to Sales of Stock in Agricultural Refiners and Processors to Eligible Farm Cooperatives.-- ``(1) In general.--This section shall apply to the sale of stock of a qualified refiner or processor to an eligible farmers' cooperative. ``(2) Qualified refiner or processor.--For purposes of this subsection, the term `qualified refiner or processor' means a domestic corporation-- ``(A) substantially all of the activities of which consist of the active conduct of the trade or business of refining or processing agricultural or horticultural products, and ``(B) which purchases more than one-half of such products to be refined or processed from farmers who make up the eligible farmers' cooperative which is purchasing stock in the corporation in a transaction to which this subsection is to apply. ``(3) Eligible farmers' cooperative.--For purposes of this section, the term `eligible farmers' cooperative' means an organization to which part I of subchapter T applies which is engaged in the marketing of agricultural or horticultural products. ``(4) Special rules.--In applying this section to a sale to which paragraph (1) applies-- ``(A) the eligible farmers' cooperative shall be treated in the same manner as a cooperative described in subsection (b)(1)(B), ``(B) the determination as to whether any stock in the domestic corporation is a qualified security shall be made without regard to whether the stock is an employer security or to subsection (c)(1)(A), and ``(C) subsection (c)(7) shall not apply.'' (b) Coordination With Section 338(h)(10).--Section 338(h)(10) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: ``(D) Coordination with section 1042.--An election may be made under this paragraph with respect to a sale described in section 1042(g) for which an election was made under section 1042(a), except that no gain shall be recognized by reason of subparagraph (A)(ii) to the extent it is not recognized under section 1042(a).'' (c) Effective Date.--The amendments made by this section shall apply to sales after the date of the enactment of this Act. <all>