This bill eliminates a major tax break that currently allows large corporate mergers and acquisitions to proceed without triggering capital gains taxes. Specifically, it eliminates the tax-free treatment of reorganizations when two large corporations combine and their combined average annual gross receipts exceed $500 million over the preceding three years. The bill affects large corporations engaging in mergers, acquisitions, and certain asset transfers, while providing exceptions for cases where one company already controls another or where smaller businesses are involved. The $500 million threshold will automatically adjust for inflation each year after 2026. The legislation takes effect immediately upon passage and gives the Treasury Department authority to write regulations preventing companies from using complex transaction structures to evade these new rules.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.