(a) In general Section 121(b) of the Internal Revenue Code of 1986 is amended— (1) by striking paragraphs (1), (2), and (4), and (2) by redesignating paragraphs (3) and (5) as paragraphs (1) and (2), respectively. (b) Conforming amendments Section 121(c) of such Code is amended— (1) in paragraph (1), by striking, and subsection (b)(3) and all that follows through 2 years and inserting, and subsection (b)(1), shall not apply, and (2) in paragraph (2)(A)(ii), by striking subsection (b)(3) and inserting subsection (b)(1). (c) Effective date The amendments made by this section shall apply to sales and exchanges after the date of the enactment of this Act.