A bill to amend the Internal Revenue Code of 1954 with respect to the income tax treatment of certain distributions and sales pursuant to the Bank Holding Company Act Amendments of 1970.

[AI summary unavailable — showing source text] Provides that property which is required to be divested pursuant to the Bank Holding Company Act Amendments of 1970 may be distributed by a bank holding corporation to its stockholders without the recognition of gain to the stockholders. States that this would only apply to the distribution of property under the Bank Holding Company Act which had been acquired prior to July 1, 1970. Denies nonrecognition treatment for any distribution if, in connection with such distribution, the distributing corporation retains or transfers, after July 7, 1970, to any corporation, property (other than prohibited property) as part of a plan one of the principal purposes of which is the distribution of the earnings and profits of any corporation. Requires the Federal Reserve Board to certify prior to a distribution that such distribution is necessary or appropriate to effectuate the policies of this Act. Requires a distribution to the stockholder of prohibited property or bank property to be completed within three years after the first distribution of such property is made. Provides for the nonrecognition of gain where a bank holding corporation sells prohibited property or bank property pursuant to…