TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX.

SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX. (a) In General.—Subparagraph (B) of section 1374(d)(7) of the Internal Revenue Code of 1986 is amended to read as follows: “(B) Special rules for 2009, 2010, and 2011. No tax shall be imposed on the net recognized built-in gain of an S corporation— “(i) in the case of any taxable year beginning in 2009 or 2010, if the 7th taxable year in the recognition period preceded such taxable year, or “(ii) in the case of any taxable year beginning in 2011, if the 5th year in the recognition period preceded such taxable year. The preceding sentence shall be applied separately with respect to any asset to which paragraph (8) applies.” . (b) Effective Date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2010.