107 STAT. 430 PUBLIC LAW 103-66—AUG. 10, 1993 by this subsection shall be subject to section 681 (relating to unrelated business income)." 26 USC 643. (3) Paragraph (3) of section 643(a) is amended by adding at the end thereof the following new sentence: The exclusion under section 1202 shall not be taken into account.". (4) Paragraph (4) of section 691(c) is amended by striking "1201, and 12ir and inserting "1201, 1202, and 1211". (5) The second sentence of paragraph (2) of section 871(a) is amended by inserting "such gains and losses shall be determined without regard to section 1202 and" after "except that". (6) The table of sections for part I of subchapter P of chapter 1 is amended by adding after the item relating to section 1201 the following new item: "Sec. 1202. 5(Kpercent exclusion for gain from certain small business stock." 26 USC 53 note. (e) EFFECTIVE DATE.—The amendments made by this section shall apply to stock issued after the date of the enactment of this Act. SEC. 13114. ROIXOVER OF GAIN FROM SALE OF PUBLICLY TRADED SECURITIES INTO SPECIALIZED SMALL BUSINESS INVESTMENT COMPANIES. (a) IN GENERAL.—Part III of subchapter O of chapter 1 (relating to common nontaxable exchanges) is amended by adding at the end the following new section:
- «EC. 1044. ROLLOVER OF PUBLICLY TRADED SECURITIES GAIN INTO
SPECIALIZED SMALL BUSINESS INVESTMENT COMPA- NIES. " (a) NONRECOGNITION OF GAIN.— In the case of the sale of any publicly traded securities with respect to which the taxpayer elects the application of this section, gain from such sale shall be recognized only to the extent that the amount realized on such sale exceeds— "(1) the cost of any common stock or partnership interest in a specialized small business investment company purchase by the taxpayer during the 60-day period beginning on the date of such sale, reduced by "(2) any portion of such cost previously taken into account under this section. This section shall not apply to any gain which is treated as ordinary income for purposes of tms subtitle. "(b) LIMITATIONS.— "(1) LIMITATION ON INDIVIDUALS. —In the case of an individual, the amoiuit of gain which may be excluded under subsection (a) for any taxable year shall not exceed the lesser of— "(A) $50,000, or "(B) $500,000, reduced by the amount of gain excluded under subsection (a) for all preceding taxable years. " (2) LIMITATION ON c CORPORATIONS. — In the case of a C corporation, the amount of gain which may be excluded under subsection (a) for any taxable year shall not exceed the lesser of— " (A) $250,000, or "(B) $1,000,000, reduced by the amount of gain excluded under subsection (a) for all preceding taxable years.
�
