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PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 431 "(3) SPECIAL RULES FOR MARRIED INDIVIDUALS.—For piir- poses of this subsection— "(A) SEPARATE RETURNS.—In the case of a separate return by a married individual, paragraph (1) shall be applied by substituting '$25,000' for '$50,000' and '$250,000' for '$500,000'. "(B) ALLOCATION OF GAIN.—In the case of any joint return, the amount of gain excluded imder subsection (a) for any taxable year shall be allocated equally between the spouses for purposes of appl3dng this subsection to subsequent taxable years. "(C) MARITAL STATUS.—^For purposes of this subsection, marital status shall be determined under section 7703. "(4) SPECIAL RULES FOR C CORPORATION.—For purposes of this subsection— "(A) all corporations which are members of the same controlled group of corporations (within the meaning of section 52(a)) shall be treated as 1 taxpayer, and "(B) any gain excluded under subsection (a) by a prede- cessor of any C corporation shall be treated as having been excluded by such C corporation. "(c) DEFINITIONS AND SPECIAL RULES.—For purposes of this section— "(1) PUBUCLY TRADED SECURITIES.—The term 'publicly traded securities' means securities which are traded on an established securities market. "(2) PURCHASE.—^The term 'purchase' has the meaning given such term by section 1043(b)(4). "(3) SPECIALIZED SMALL BUSINESS INVESTMENT COMPANY.— The term 'specialized small business investment company* means any partnership or corporation which is licensed by the Small Business Administration imder section 301(d) of the Small Business Investment Act of 1958 (as in effect on May 13,1993). "(4) CERTAIN ENTITIES NOT ELIGIBLE.—This section shall not apply to any estate, trust, partnership, or S corporation. "(d) BASIS ADJUSTMENTS.—If gain from any sale is not recog- nized by reason of subsection (a), such gain shall be applied to reduce (in the order acquired) the basis for determining gain or loss of any common stock or partnership interest in any specialized small business investment company which is purchased by the taxpayer during the 60-day period described in subsection (a). This subsection shall not applv for purposes of section 1202." (b) CONFORMING AMENDMENT.—Paragraph (24) of section 1016(a) is amended— 26 use 1016. (1) by striking "section 1043" and inserting "section 1043 or 1044", and (2) by striking "section 1043(c)" and inserting "section 1043(c) or 1044(d), as the case may be". (c) CLERICAL AMENDMENT.—The table of sections for part III of subchapter O of chapter 1 is amended by adding at the end the following new item: "Sec. 1044. Rollover of publicly traded securities gain into specialized small business investment companies." (d) EFFECTIVE DATE.—^The amendments made by this section 26 use ioi6 shall apply to sales on and after the date of the enactment of "°*®- this Act, in taxable years ending on and after such date.