Sec. 1311. FIVE-YEAR NET OPERATING LOSS CARRYOVER FOR CERTAIN LOSSES

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## SEC. 1311 FIVE-YEAR NET OPERATING LOSS CARRYOVER FOR CERTAIN LOSSES Paragraph

(1)of section 172(b) (relating to net operating loss carrybacks and carryovers) is amended by adding at the end the following new subparagraph: > > ###### “(I) Transmission property and pollution control investment > > > ###### “(i) In general > > At the election of the taxpayer in any taxable year ending after December 31, 2005, and before January 1, 2009, in the case of a net operating loss in a taxable year ending after December 31, 2002, and before January 1, 2006, there shall be a net operating loss carryback to each of the 5 years preceding the taxable year of such loss to the extent that such loss does not exceed 20 percent of the sum of electric transmission property capital expenditures and pollution control facility capital expenditures of the taxpayer for the taxable year preceding the taxable year in which such election is made. > > > ###### “(ii) Limitations > > For purposes of this subsection— > > > ###### “(I) > > not more than one election may be made under clause

(i)with respect to any net operating loss in a taxable year, and > > > ###### “(II) > > an election may not be made under clause

(i)for more than 1 taxable year beginning in any calendar year. > > > ###### “(iii) Coordination with ordering rule > > For purposes of applying subsection (b)(2), the portion of any loss which is carried back 5 years by reason of clause

(i)shall be treated in a manner similar to the manner in which a specified liability loss is treated. > > > ###### “(iv) Application for adjustment > > In the case of any portion of a net operating loss to which an election under clause

(i)applies, an application under section 6411(a) with respect to such loss shall not fail to be treated as timely filed if filed within 24 months after the due date specified under such section. > > > ###### “(v) Special rules relating to refund > > For purposes of a net operating loss to which an election under clause

(i)applies, references in sections 6501(h), 6511(d)(2)(A), and 6611(f)(1) to the taxable year in which such net operating loss arises or result in a net loss carryback shall be treated as references to the taxable year in which such election occurs. > > > ###### “(vi) Definitions > > For purposes of this subparagraph— > > > ###### “(I) Electric transmission property capital expenditures > > The term ‘**electric transmission property capital expenditures**’ means any expenditure, chargeable to capital account, made by the taxpayer which is attributable to electric transmission property used by the taxpayer in the transmission at 69 or more kilovolts of electricity for sale. Such term shall not include any expenditure which may be refunded or the purpose of which may be modified at the option of the taxpayer so as to cease to be treated as an expenditure within the meaning of such term. > > > ###### “(II) Pollution control facility capital expenditures > > The term ‘**pollution control facility capital expenditures**’ means any expenditure, chargeable to capital account, made by an electric utility company (as defined in section 2(3) of the Public Utility Holding Company Act (15 U.S.C. 79b(3)), as in effect on the day before the date of the enactment of the Energy Tax Incentives Act of 2005) which is attributable to a facility which will qualify as a certified pollution control facility as determined under section 169(d)(1) by striking ‘before January 1, 1976,’ and by substituting ‘an identifiable’ for ‘a new identifiable’. Such term shall not include any expenditure which may be refunded or the purpose of which may be modified at the option of the taxpayer so as to cease to be treated as an expenditure within the meaning of such term.” > . ## Subtitle B Domestic Fossil Fuel Security

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15 USC 79b(3)

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Sec. 1311

FIVE-YEAR NET OPERATING LOSS CARRYOVER FOR CERTAIN LOSSES

Cite15 USC 79b(3)

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