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HR 242 106th Congress House

Small Business and Financial Institutions Tax Relief Act of 1999

Official title: To amend the Internal Revenue Code of 1986 to expand S corporation eligibility for banks, and for other purposes.

Introduced: April 15, 1999 See on congress.gov
Taxation Administrative procedureBank directorsBank loansBusiness income tax
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Business lossesCommerceCorporate debtCorporation taxesDepartment of the TreasuryFinance and Financial SectorGovernment Operations and PoliticsIncome taxIndividual retirement accountsInvestmentsLabor and EmploymentLawLoan defaultsSecuritiesSmall business
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This bill died when the 106th Congress ended
It never became law before the 106th Congress (1999–2000) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Jan 6, 1999
Referred to the House Committee on Ways and Means.
Jan 6, 1999
Introduced in House
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 Latest action January 6, 1999

Referred to the House Committee on Ways and Means.

 Plain-English summary Congressional Research Service

Small Business and Financial Institutions Tax Relief Act of 1999 - Amends the Internal Revenue Code to permit S corporation eligible shareholders to include individual retirement accounts.

(Sec. 3) Excludes investment securities income held by a bank from passive income limits for purposes of S status termination.

(Sec. 4) Increases the number of eligible S corporation shareholders.

(Sec. 5) States that stock held by a bank director as required by banking regulations (director qualifying stock) shall not be considered a disqualifying second class of S corporation stock.

(Sec. 6) Directs the Secretary of the Treasury to modify a certain Regulation to permit an S corporation bank to charge certain bad debt deductions over a related bad debt reserve recapture period.

(Sec. 7) Includes all banks within the three-year deduction preference rule.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Cosponsors 2
All 2 Democratic 1 Republican 1
D
DeGette, Diana
Colorado · Apr 15, 1999
 R
Sessions, Pete
Texas · Apr 15, 1999
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 242: Small Business and Financial Institutions Tax Relief Act of 1999. 106th Congress. Open America. https://openamerica.io/bill/106-HR-242/
MLA
"H.R. 242: Small Business and Financial Institutions Tax Relief Act of 1999." 106th Congress, 2026, Open America, https://openamerica.io/bill/106-HR-242/.
Bluebook (legal)
H.R. 242, 106th Cong. (2026), https://openamerica.io/bill/106-HR-242/.
Markdown link
[H.R. 242: Small Business and Financial Institutions Tax Relief Act of 1999](https://openamerica.io/bill/106-HR-242/)
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