S Corporation Modernization Act of 2008 (S. 3063)

Introduced by Finance Committee members Senators Blanche Lincoln (D-AR) and Orrin Hatch (R-UT), the bS Corporation Modernization Actb is a companion bill to the Kind legislation and would greatly simplify the rules under which S corporations operate.B Cosponsors of S. 3063 including Finance members Gordon Smith (R-OR), Olympia Snowe (R-MN), and.

The bill isB endorsed by an impressive group of business associations and includes reforms important to keeping S corporations competitive both here at home and abroad.B Provisions included in the Senate bill have been long-time legislative priorities for the S Corporation Association that would reduce the harm caused by the built-in gains (BIG) tax and the so-called “sting tax;b protect the unwary from overwhelming termination consequences from inadvertent mistakes; and in addition to increasing the ability of S corporations to access their own locked-up capital, the legislation would allow these companies to attract capital from overseas.

This legislation makes important and timely improvements to those rules, making it easier to our members to raise capital, plan their estates, and create jobs.

Click here to read the full text of the bill

Click here for a section-by-section summary.

Click here for the S Corp press release.