ACCESS Act

Section 512(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

There shall be excluded any income, gain, deduction, loss, or credit attributable to publicly traded classes of units of a publicly traded partnership (as defined in section 7704(b)) which is not treated as a corporation under section 7704(c), provided that the beneficial owner of such publicly traded classes of units owns (or is considered as owning within the meaning of section 318) less than 5 percent of the capital or profits of such publicly traded partnership.

Section 851(b)(3)(B) of such Code is amended—

(1) in clause (i), by adding or at the end,

(2) in clause (ii), by striking, or at the end and inserting a period, and

(3) by striking clause (iii).

Section 469 of such Code is amended by striking subsection (k) and by redesignating subsection (l) as subsection (k).

Section 864(c)(8) of such Code is amended by redesignating subparagraphs (C) through (E) as subparagraphs (D) through (F), respectively, and by inserting after subparagraph (B) the following new subparagraph:

Subparagraph (A) shall not apply in the case of a partner’s sale or exchange of a class of partnership interest which is regularly traded on an established securities exchange, but only if at all times during the 5-year period ending on the date of such sale or exchange, the partner held not more than 10 percent of such class.

Section 1446(f)(1) of such Code is amended by inserting, other than a class of partnership interest which is regularly traded on an established securities exchange, after interest in a partnership.

The amendments made by this section shall apply to taxable years beginning after December 31, 2026.