A bill to amend section 1235 of the Internal Revenue Code of 1954 (relating to the sale or exchange of patents) to provide that such section applies to certificates of plant variety protection and to certain patents acquired from certain qualified institutions.

Amends the Internal Revenue Code to redefine a "holder" of patents to include an individual who acquires a patent from an institutional employer of the creator, for purposes of capital gains taxation. Redefines "patent" to include a certificate of plant variety protection.