Grandfather clause

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Related to Grandfather rule: grandfather clause, Grandfathered in

Grandfather clause

A provision included in a new rule or regulation that exempts a business that is already conducting business in the area addressed by the regulation from penalty or restriction.

Grandfather Clause

A clause in a new law, regulation, or anything else that exempts certain persons or businesses from abiding by it. For example, suppose a country passes a law stating that it is illegal to own a cat. A grandfather clause would allow persons who already own cats to continue to keep them, but would prevent people who do not own cats from buying them. Grandfather clauses are controversial, but they are also relatively common.
References in periodicals archive ?
regulations implementing ACA's grandfather rule establish narrow
A did not elect to have the special grandfather rule apply.
The new regulations are an improvement, the Institute stated, especially in regard to the transition and grandfather rules.
Furthermore, the provisions would eliminate grandfather rules enacted by Congress in 2000 that explicitly allowed the FSC rules -- which were repealed in the same legislation -- to continue to apply fully to prior leasing transactions.
Shares acquired before that date, subject to certain binding commitment grandfather rules, are not restricted.
TEI is concerned, however, that the deadlines set for amending current CSAs and filing CSA statements under the grandfather rules do not provide taxpayers with sufficient time to comply.
Certain S corporations may have kept their year beginning in 1986 under grandfather rules.