S. 3838: S Corporation Reform Act of 2006

109th Congress · introduced 2006-08-03 · Taxation · Latest: Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S8852-8855)

federal

Follow this bill, step by step

Where it came from: introduced 2006-08-03 · official record
Who proposed it: Sen. Hatch, Orrin G. [R-UT] · what a sponsor is
What happened next: no floor votes in our records yet. Why?
Where it stands now: Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S8852-8855) Not final yet: this can still change. We check for updates every day.
If it becomes law and spends money: follow the money to money laws, then agencies and contracts and grants.

What does this mean?

Official title

S Corporation Reform Act of 2006

Plain summary

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.

Congressional Research Service summary (Introduced in Senate), quoted unchanged (nonpartisan). Read the source.

What a vote does

A “Yea” vote

If it passes both chambers and is signed, it becomes law.

A “Nay” vote

If it is not passed, current law stays as it is.

PSI Sci description of the legislative step (not an opinion).

What does this mean? (plain words)

Official text

S Corporation Reform Act of 2006

Source: Congressional Research Service summary (Introduced in Senate)

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How did my representative vote? · This bill's floor votes

Officials and money

Sponsor: Sen. Hatch, Orrin G. [R-UT] · 1 cosponsors

Cost estimate: No cost estimate published yet.

Cosponsors on this site

No linked floor roll calls in our collected records yet. This does not mean the bill has never had a vote. Check the official bill history.

Words on this page, explained (2)

Bond: A way to borrow money. A government sells bonds to raise money now and promises to pay it back with interest over time. Bonds repaid from taxes often need voter approval.
Rulemaking: The process agencies use to write regulations that carry out laws passed by Congress or a legislature. Usually an agency publishes a proposed rule, takes public comments, then publishes a final rule.

Plain meanings written from linked sources. All words.

Sources

Congressional Research Service summary (Introduced in Senate)
Congress.gov
Data: GovInfo BILLSTATUS bulk data (Library of Congress), BILLSTATUS-109s3838.xml <https://www.govinfo.gov/bulkdata/BILLSTATUS/109/s>

Record fed-us-cong109-s3838 · catalog fed-us-congress-bills-cong109 · updated 2026-11-15 by psicol fed-bills-cong109