Invest Now Act

I 116TH CONGRESS 2D SESSION H. R. 7787 To amend the Internal Revenue Code of 1986 to provide a reduced capital gains rate on certain property acquired in 2020. IN THE HOUSE OF REPRESENTATIVES JULY 24, 2020 Mr. SCHWEIKERT (for himself and Mr. NUNES) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide a reduced capital gains rate on certain property acquired in 2020. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Invest Now Act’’. 4 SEC. 2. REDUCED CAPITAL GAINS RATE ON CERTAIN PROP- 5 ERTY ACQUIRED IN 2020. 6 (a) IN GENERAL.—Section 1(h) of the Internal Rev- 7 enue Code of 1986 is amended by adding at the end the 8 following new paragraph: 9 VerDate Sep 11 2014 18:54 Aug 15, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7787.IH H7787 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 7787 IH ‘‘(12) REDUCED RATE FOR CERTAIN PROPERTY 1 ACQUIRED IN 2020.— 2 ‘‘(A) IN GENERAL.—So much of the ad- 3 justed net capital gain taxed at a rate of 20 4 percent under paragraph (1) (determined with- 5 out regard to this paragraph) to the extent at- 6 tributable to the sale or exchange of qualified 7 property shall be taxed at a rate of 5 percent 8 under such paragraph (and not 20 percent). 9 ‘‘(B) COORDINATION WITH 15 PERCENT 10 RATE.—So much of the adjusted net capital 11 gain taxed at a rate of 15 percent or 20 percent 12 under paragraph (1) (determined without re- 13 gard to this paragraph) to the extent attrib- 14 utable to the sale or exchange of qualified prop- 15 erty (reduced by so much of such gain as is 16 taxed at the rate determined under clause (i)) 17 shall be taxed at a rate of 5 percent (and not 18 15 percent). 19 ‘‘(C) QUALIFIED PROPERTY.—For pur- 20 poses of this paragraph— 21 ‘‘(i) IN GENERAL.—The term ‘quali- 22 fied property’ means any property— 23 ‘‘(I) purchased (as defined in sec- 24 tion 179(d)(2)) by the taxpayer after 25 VerDate Sep 11 2014 18:54 Aug 15, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7787.IH H7787 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 7787 IH December 31, 2019, and before Janu- 1 ary 1, 2021, and 2 ‘‘(II) held by the taxpayer (as de- 3 termined under section 1223) for a 4 period of more than 5 years. 5 ‘‘(ii) EXCEPTION FOR WASH SALES.— 6 Such term shall not include any property 7 the basis of which is determined under sec- 8 tion 1091(d).’’. 9 (b) EFFECTIVE DATE.—The amendment made by 10 this section shall apply to taxable years beginning after 11 December 31, 2020. 12 Æ VerDate Sep 11 2014 18:54 Aug 15, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H7787.IH H7787 pamtmann on DSKBC07HB2PROD with BILLS