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131 STAT. 2162 PUBLIC LAW 115–97—DEC. 22, 2017 manner in which an election is made under subsection (b). ‘‘(B) LIMITATIONS.—No election may be made under this section with respect to any qualified stock if— ‘‘(i) the qualified employee has made an election under subsection (b) with respect to such qualified stock, ‘‘(ii) any stock of the corporation which issued the qualified stock is readily tradable on an established securities market (as determined under paragraph (1)(B)(iii)) at any time before the election is made, or ‘‘(iii) such corporation purchased any of its out- standing stock in the calendar year preceding the cal- endar year which includes the first date the rights of the employee in such stock are transferable or are not subject to a substantial risk of forfeiture, unless— ‘‘(I) not less than 25 percent of the total dollar amount of the stock so purchased is deferral stock, and ‘‘(II) the determination of which individuals from whom deferral stock is purchased is made on a reasonable basis. ‘‘(C) DEFINITIONS AND SPECIAL RULES RELATED TO LIMITATION ON STOCK REDEMPTIONS.— ‘‘(i) DEFERRAL STOCK.—For purposes of this para- graph, the term ‘deferral stock’ means stock with respect to which an election is in effect under this subsection. ‘‘(ii) DEFERRAL STOCK WITH RESPECT TO ANY INDI- VIDUAL NOT TAKEN INTO ACCOUNT IF INDIVIDUAL HOLDS DEFERRAL STOCK WITH LONGER DEFERRAL PERIOD.— Stock purchased by a corporation from any individual shall not be treated as deferral stock for purposes of subparagraph (B)(iii) if such individual (immediately after such purchase) holds any deferral stock with respect to which an election has been in effect under this subsection for a longer period than the election with respect to the stock so purchased. ‘‘(iii) PURCHASE OF ALL OUTSTANDING DEFERRAL STOCK.—The requirements of subclauses (I) and (II) of subparagraph (B)(iii) shall be treated as met if the stock so purchased includes all of the corporation’s outstanding deferral stock. ‘‘(iv) REPORTING.—Any corporation which has out- standing deferral stock as of the beginning of any calendar year and which purchases any of its out- standing stock during such calendar year shall include on its return of tax for the taxable year in which, or with which, such calendar year ends the total dollar amount of its outstanding stock so purchased during such calendar year and such other information as the Secretary requires for purposes of administering this paragraph. ‘‘(5) CONTROLLED GROUPS.—For purposes of this subsection, all persons treated as a single employer under section 414(b) shall be treated as 1 corporation. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00110 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS