The Employee Ownership Blog has provided more information on Rangel's Corporate Tax Proposal, also known as H.R. 3970 - Tax Reduction and Reform Act of 2007:

"Please note, the provision defines as an option any interest that is the same as what is defined as synthetic equity in IRC 409(p)(6)(C). The new tax provision would apply to options granted after the date of enactment."

The post also reiterates the fact that this bill is unlikely to make it through Congress:

"There is strong opposition to the entire bill, and enactment would be no earlier than some time in 2008, or perhaps even later, if ever."