GRATUITOUS TRANSFER FOR BENEFITS OF EMPLOYEES.

SEC. 868. GRATUITOUS TRANSFER FOR BENEFITS OF EMPLOYEES.(a) In General.—Subparagraph (E) of section 664(g)(3) of the Internal Revenue Code of 1986 is amended by inserting “(determined on the basis of fair market value of securities when allocated to participants)” after “paragraph (7)”.(b) Effective Date.—The amendment made by this section shall take effect on the date of the enactment of this Act.120 STAT. 1026