Sec. 2303. Modifications for net operating losses
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The first sentence of section 172(a) of the Internal Revenue Code of 1986 is amended by striking an amount equal to and all that follows and inserting an amount equal to— in the case of a taxable year beginning before January 1, 2021, the aggregate of the net operating loss carryovers to such year, plus the net operating loss carrybacks to such year, and in the case of a taxable year beginning after December 31, 2020, the sum of— the aggregate amount of net operating losses arising in taxable years beginning before January 1, 2018, carried to such taxable year, plus the lesser of— the aggregate amount of net operating losses arising in taxable years beginning after December 31, 2017, carried to such taxable year, or 80 percent of the excess (if any) of— taxable income computed without regard to the deductions under this section and sections 199A and 250, over the amount determined under subparagraph (A). .
Section 172(b)(2)(C) of such Code is amended to read as follows: for taxable years beginning after December 31, 2020, be reduced by 20 percent of the excess (if any) described in subsection (a)(2)(B)(ii) for such taxable year. . Section 172(d)(6)(C) of such Code is amended by striking subsection (a)(2) and inserting subsection (a)(2)(B)(ii)(I) . Section 860E(a)(3)(B) of such Code is amended by striking all that follows for purposes of and inserting subsection (a)(2)(B)(ii)(I) and the second sentence of subsection (b)(2) of section 172. .
Section 172(b)(1) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: In the case of any net operating loss arising in a taxable year beginning after December 31, 2017, and before January 1, 2021— such loss shall be a net operating loss carryback to each of the 5 taxable years preceding the taxable year of such loss, and subparagraphs
(B)and (C)(i) shall not apply. For purposes of this subparagraph— A net operating loss for a REIT year shall not be a net operating loss carryback to any taxable year preceding the taxable year of such loss. In the case of any net operating loss for a taxable year which is not a REIT year, such loss shall not be carried to any preceding taxable year which is a REIT year. For purposes of this subparagraph, the term REIT year means any taxable year for which the provisions of part II of subchapter M (relating to real estate investment trusts) apply to the taxpayer. In the case of a life insurance company, if a net operating loss is carried pursuant to clause (i)(I) to a life insurance company taxable year beginning before January 1, 2018, such net operating loss carryback shall be treated in the same manner as an operations loss carryback (within the meaning of section 810 as in effect before its repeal) of such company to such taxable year. If a net operating loss of a taxpayer is carried pursuant to clause (i)(I) to any taxable year in which an amount is includible in gross income by reason of section 965(a), the taxpayer shall be treated as having made the election under section 965(n) with respect to each such taxable year. If the 5-year carryback period under clause (i)(I) with respect to any net operating loss of a taxpayer includes 1 or more taxable years in which an amount is includible in gross income by reason of section 965(a), the taxpayer may, in lieu of the election otherwise available under paragraph (3), elect under such paragraph to exclude all such taxable years from such carryback period. An election under paragraph
(3)(including an election described in subclause (I)) with respect to a net operating loss arising in a taxable year beginning in 2018 or 2019 shall be made by the due date (including extensions of time) for filing the taxpayer's return for the first taxable year ending after the date of the enactment of this subparagraph. . Section 172(b)(1)(A) of such Code, as amended by subsection (c)(2), is amended by striking and (C)(i) and inserting , (C)(i), and
(D). 13302 of Public Law 115–97 Section 13302(e) of Public Law 115–97 is amended to read as follows: The amendments made by subsections
(a)and (d)(2) shall apply to— taxable years beginning after December 31, 2017, and taxable years beginning on or before such date to which net operating losses arising in taxable years beginning after such date are carried. The amendments made by subsections (b), (c), and (d)(1) shall apply to net operating losses arising in taxable years beginning after December 31, 2017. . Section 172(b)(1)(A) of the Internal Revenue Code of 1986 is amended to read as follows: A net operating loss for any taxable year— shall be a net operating loss carryback to the extent provided in subparagraphs
(B)and (C)(i), and except as provided in subparagraph (C)(ii), shall be a net operating loss carryover— in the case of a net operating loss arising in a taxable year beginning before January 1, 2018, to each of the 20 taxable years following the taxable year of the loss, and in the case of a net operating loss arising in a taxable year beginning after December 31, 2017, to each taxable year following the taxable year of the loss. . The amendments made by subsection
(a)shall apply— to taxable years beginning after December 31, 2017, and to taxable years beginning on or before December 31, 2017, to which net operating losses arising in taxable years beginning after December 31, 2017, are carried. The amendment made by subsection
(b)shall apply to— net operating losses arising in taxable years beginning after December 31, 2017, and taxable years beginning before, on, or after such date to which such net operating losses are carried. The amendments made by subsection
(c)shall take effect as if included in the provisions of Public Law 115–97 to which they relate. In the case of a net operating loss arising in a taxable year beginning before January 1, 2018, and ending after December 31, 2017— an application under section 6411(a) of the Internal Revenue Code of 1986 with respect to the carryback of such net operating loss shall not fail to be treated as timely filed if filed not later than the date which is 120 days after the date of the enactment of this Act, and an election to— forgo any carryback of such net operating loss, reduce any period to which such net operating loss may be carried back, or revoke any election made under section 172(b) to forgo any carryback of such net operating loss, shall not fail to be treated as timely made if made not later than the date which is 120 days after the date of the enactment of this Act.
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Sec. 2303
Modifications for net operating losses
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