1. Short title This Act may be cited as the Broadband Stock Acquisition in Local Exchanges Act or as the Broadband SALE Act . 2. Exclusion of gain from sale of rural incumbent local exchange carrier stock (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139J. Gain from sale of rural incumbent local exchange carrier stock (a) Exclusion Gross income shall not include gain from the sale or exchange of the entire interest in a wholly owned rural incumbent local exchange carrier. (b) Apportionment In the case of a carrier described in paragraph (1) that serves areas not described in paragraph (1), the amount excluded under subsection (a) shall not exceed the product of such amount (without regard to this paragraph) and the ratio of— (1) revenues attributable to the provision of communications services in an area described in subsection (c) during the 1-year period preceding such sale, to (2) all revenues during such period. (c) Rural incumbent local exchange carrier For purposes of this section, the term rural incumbent local exchange carrier means an incumbent local exchange carrier that serves an area that is an area— (1) where the carrier was required (on the date of the enactment of the Telecommunications Act of 1996) by law or regulation to provide communications services to any customer regardless of cost, and (2) other than an urbanized area with— (A) not fewer than 50,000 people, and (B) a core where there are not fewer than 1,000 people per square mile. (d) Definitions For purposes of this section, terms defined in the Communications Act of 1934 have the meaning given such terms in such Act. (e) Termination This section shall not apply to sales or exchanges for which an application for a certificate under section 214 of the Communications Act of 1934 is filed after the date that is 5 years after the date of the enactment of this section. . (b) Conforming amendment Section 338(a) of such Code is