(a) shall not apply to an exchange by an applicable entity if a notice received by the entity under subsection (b)(2)(A) or (c)(2) of section 493 is in effect at the time of such exchange. . (b) Effective date The amendment made by this section shall apply to exchanges completed after December 31, 2023. 212. Treatment of transfers by applicable entities in exchange for stock (a) In general Section 351 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h) Special rules for applicable entities (1) In general Subsection (a) shall not apply to an exchange by an applicable entity if an applicable notice received by the entity is in effect at the time of such exchange. (2) Applicable notice For purposes of paragraph (1)— (A) In general The term applicable notice means, with respect to any applicable entity, a notice— (i) which is received by the entity under subsection (b)(2)(A) or (c)(2) of section 493, and (ii) which relates to an applicable taxpayer who is a 20-percent owner with respect to such entity. (B) 20-percent owner For purposes of subparagraph (A), a 20-percent owner shall be determined in the same manner as a 5-percent owner under section 493(b)(4)(B), except that 20 percent shall be substituted for 5 percent in applying clauses (i) and (ii)(I) thereof. (3) Applicable entity For purposes of this subsection, the term applicable entity has the meaning given such term by section 493. . (b) Effective date The amendments made by this section shall apply to exchanges completed after December 31, 2023. 213. Special rules for applicable trusts (a) In-Kind distributions Section 643(e)(3) is amended— (1) in subparagraph (A), by striking to which an election under this paragraph applies and inserting to which this paragraph applies , and (2) by striking subparagraph (B) and inserting the following: (B) Distributions to which this paragraph applies This paragraph shall apply to— (i) any distribution of property by an estate which is