1989—Subsec. (e)(1). Pub. L. 101–239 substituted “built-in gain” for “build-in gain”.
1988—Subsec. (a). Pub. L. 100–647, § 2004(m)(1)(A), amended subsec. (a) generally, making changes in substance and structure.
Subsec. (b). Pub. L. 100–647, § 2004(m)(3), substituted “corporations under common control” for “50 percent of gain corporation held” in heading and amended text generally. Prior to amendment, text read as follows: “Subsection (a) shall not apply if more than 50 percent of the stock (by vote and value) of the gain corporation was held throughout the 5-year period ending on the acquisition date—
“(1) in any case described in subsection (a)(1), by members of the affiliated group referred to in subsection (a)(1), or
“(2) in any case described in subsection (a)(2), by the acquiring corporation or members of such acquiring corporation’s affiliated group.
For purposes of the preceding sentence, stock described in section 1504(a)(4) shall not be taken into account.”
Subsec. (c)(1)(A). Pub. L. 100–647, § 2004(m)(1)(D), substituted “subsection (a)(1)(B)” for “subsection (a)(2)”.
Subsec. (c)(2). Pub. L. 100–647, § 2004(m)(1)(C), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The term ‘acquisition date’ means the date on which the gain corporation becomes a member of the affiliated group or, in any case described in subsection (a)(2), the date of the distribution or transfer in the liquidation or reorganization.”
Subsec. (c)(4) to (8). Pub. L. 100–647, § 2004(m)(1)(B), redesignated par. (4) as (8) and added pars. (4) to (7).
Subsecs. (e), (f). Pub. L. 100–647, § 2004(m)(2), (4), substituted “a corporation” for “the gain corporation” in subsec. (e)(2), redesignated subsec. (e) as (f), and added subsec. (e).
Pub. L. 100–203, title X, § 10226(c), Dec. 22, 1987, 101 Stat. 1330–416, provided that:
“The amendments made by this section [enacting this section] shall apply in cases where the acquisition date (as defined in section 384(c)(2) of the Internal Revenue Code of 1986 as added by this section) is after December 15, 1987; except that such amendments shall not apply in the case of any transaction pursuant to—
a binding written contract
in effect on or before December 15, 1987
a letter of intent or agreement of merger signed on or before December 15, 1987.”
Election To Have Amendments by Pub. L. 100–647 Not Apply
Pub. L. 100–647, title II, § 2004(m)(5), Nov. 10, 1988, 102 Stat. 3607, provided that:
“In any case where the acquisition date
(as defined in section 384(c)(2) of the 1986 Code as amended by this subsection) is before March 31, 1988
, the acquiring corporation
may elect to have the amendments made by this subsection not apply. Such an election
shall be made in such manner as the Secretary of the Treasury
or his delegate
shall prescribe and
shall be made not later than the later of the due date
(including extensions) for filing the return
for the taxable year
of the acquiring corporation
in which the acquisition date
occurs or the date 120 days after the date of the enactment of this Act [Nov. 10, 1989
]. Such an election,
once made, shall be irrevocable.”