PlainBillCongress, translated.Legislation. Context. Public interest.Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S8852-8855)
Congressional Research Service
Version 00 · Introduced in Senate · Aug 3, 2006
S Corporation Reform Act of 2006 - Amends Internal Revenue Code provisions relating to S corporations to: (1) allow nonresident aliens and individual retirement accounts to be S corporation shareholders; (2) revise S corporation eligibility rules to permit the issuance of preferred stock, remove certain restrictions on the issuance of convertible debt and S corporation passive investment income, and allow for adjustments to the stock basis resulting from S corporation charitable contributions; (3) revise tax treatment of certain S corporation stock losses and allow a tax deduction for loan interest incurred by an electing small business trust (ESBT) to acquire S corporation stock; (4) permit certain banks to qualify for an S corporation election; (5) set forth a rule for the tax treatment of the sale of an interest in a qualified S corporation subsidiary; (6) repeal the LIFO recapture tax with respect to S corporations; (7) extend the post-termination transition period for S corporations; (8) reduce tax rates on S corporation excess passive income; and (9) increase the cap on small issue bonds applicable to certain S corporation banks.
People & committees
Sen. Hatch, Orrin G. [R-UT] · R–UT
Legislative record
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Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S8852-8855)
Sponsor introductory remarks on measure. (CR S8851-8852)
Introduced in Senate
Primary sources
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Source last updated: Aug 15, 2025. Consult Congress.gov for the current record.
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