Page:United States Statutes at Large Volume 107 Part 1.djvu/450

 107 STAT. 424 PUBLIC LAW 103-66—AUG. 10, 1993 "(1) IN GENERAL.— The term 'qualified small business' means any domestic corporation which is a C corporation if— "(A) the aggregate gross assets of such corporation (or any predecessor thereof) at all times on or after the date of the enactment of the Revenue Reconciliation Act of 1993 and before the issuance did not exceed $50,000,000, (B) the aggregate gross assets of such corporation immediately after the issuance (determined by talang into account amounts received in the issuance) do not exceed $50,000,000, and Reports. "(C) such corporation agrees to submit such reports to the Secretary and to shareholders as the Secretary may require to carry out the purposes of this section. "(A) IN GENERAL. —For purposes of paragraph (1), the term 'aggregate gross assets' means the amount of cash and the aggregate adjusted bases of other property held by the corporation. "(B) TREATMENT OF CONTRIBUTED PROPERTY.— For purposes of subparagraph (A), the adjusted basis of any property contributed to the corporation (or other property with a basis determined in whole or in part by reference to the adjusted basis of property so contributed) shall be determined as if the basis of the property contributed to the corporation (immediately after such contribution) were equal to its fair market value as of the time of such contribution. " (3) AGGREGATION RULES.— "(A) IN GENERAL. —A ll corporations which are members of the same psirent-subsidiary controlled group shall be treated as 1 corporation for purposes of this subsection. "(B) PARENT-SUBSIDIARY CONTROLLED GROUP.— For purposes of subparagraph (A), the term 'parent-subsidiary controlled group' means any controlled group of corporations as defined in section 1563(a)(1), except that— "(i) 'more than 50 percent' shall be substituted for 'at least 80 percent' each place it appears in section 1563(a)(l), and " (ii) section 1563(a)(4) shall not apply. "(1) IN GENERAL. — For purposes of subsection (c)(2), the requirements of this subsection are met by a corporation for any period if during such period— "(A) at least 80 percent (by value) of the assets of such corporation are used by such corporation in the active conduct of 1 or more qualified trades or businesses, and "(B) such corporation is an eligible corporation. "(2) SPECIAL RULE FOR CERTAIN ACTIVITIES.—For purposes of paragraph (1), if, in connection with any future qualified trade or business, a corporation is engaged in— "(A) start-up activities described in section 195(c)(l)(A), "(B) activities resulting in the payment or incurring of expenditures which may be treated as research and experimental expenditures under section 174, or "(C) activities with respect to in-house research expenses described in section 41(b)(4),
 * (2) AGGREGATE GROSS ASSETS. —
 * (e) ACTIVE BUSINESS REQUIREMENT. —

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