A bill to limit the retroactive application of section 1056 of the Internal Revenue Code of 1954 (as added by section 212 of the Tax Reform Act of 1976).

Amends the Internal Revenue Code to provide that the basis limitation rules pertaining to player contracts transferred in connection with the sale of a sports franchise shall not apply to any sale after December 31, 1975, and before March 1, 1977, if, prior to December 31, 1975, the principal shareholder of the franchise purchaser was committed to purchase, and did purchase, more than 50 percent of the voting stock of the franchise seller.