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section by way of an amendment that was retroactive to the
effective date of the TRA. See sec. 6026(a) of the Technical and
Miscellaneous Revenue Act of 1988 (TAMRA), Pub. L. 100-647, 102
Stat. 3342, 3691. As amended by TAMRA, section 263A(h)(3)(D)(i)
and (ii) allowed a “personal service corporation” (as defined in
section 269A(b)) to qualify for section 263A(h)’s exemption if,
among other requirements, “substantially all of * * * [its] stock
* * * is owned by * * * [a qualified employee-owner] and members
of his family”. The House Ways and Means Committee stated in its
report that “For this purpose, the term “substantially all” means
95 percent or more of the value of the corporation’s stock”. H.
Rept. 100-795, at 531, 532 (1988). In the following year,
Congress amended section 263A(h) a second time, again retroactive
to the effective date of section 263A, to provide that any
corporation (and not simply a personal service corporation) could
qualify for section 263A(h)’s exemption if, among other
requirements, “substantially all of * * * [its] stock * * * is
owned by a qualified employee-owner and members of his family”.
See secs. 7816(d)(1) and 7817 of the Omnibus Budget
Reconciliation Act of 1989, Pub. L. 101-239, 103 Stat. 2106,
2420.
We must apply the term “substantially all” to determine
whether petitioner qualifies for the exemption set forth in
section 263A(h). We generally apply statutory text in accordance
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