[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 1603 Introduced in Senate (IS)] <DOC> 119th CONGRESS 1st Session S. 1603 To amend the Internal Revenue Code of 1986 to clarify the tax-exempt controlled entity rules with respect to certain stock of government- sponsored enterprises. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES May 6, 2025 Mr. Moran (for himself, Mr. Young, Mr. Welch, and Mr. Warner) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to clarify the tax-exempt controlled entity rules with respect to certain stock of government- sponsored enterprises. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Preserving Rural Housing Investments Act''. SEC. 2. CLARIFICATION OF TAX-EXEMPT CONTROLLED ENTITY RULES WITH RESPECT TO CERTAIN STOCK OF GOVERNMENT-SPONSORED ENTERPRISES. (a) In General.--Section 168(h)(6)(F)(iii)(I) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: ``For purposes of applying the preceding sentence to the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association, the term `tax-exempt entity' shall not include the United States or any agency or instrumentality of the United States.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years ending after July 30, 2008. <all>