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Code · U.S. Code · Title 26 - INTERNAL REVENUE CODE · CHAPTER 1— NORMAL TAXES AND SURTAXES · Subchapter C— Corporate Distributions and Adjustments · § 383

§ 383. Special limitations on certain excess credits, etc.

2,616 words·~12 min read·/usc/title-26/section-383

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Excess credits
(1)In general Under regulations, if an ownership change occurs with respect to a corporation, the amount of any excess credit for any taxable year which may be used in any post-change year shall be limited to an amount determined on the basis of the tax liability which is attributable to so much of the taxable income as does not exceed the section 382 limitation for such post-change year to the extent available after the application of section 382 and subsections
(b)and
(c)of this section.
(2)Excess credit For purposes of paragraph (1), the term “excess credit” means—
(A)any unused general business credit of the corporation under section 39, and
(B)any unused minimum tax credit of the corporation under section 53.
(b)Limitation on net capital loss If an ownership change occurs with respect to a corporation, the amount of any net capital loss under section 1212 for any taxable year before the 1st post-change year which may be used in any post-change year shall be limited under regulations which shall be based on the principles applicable under section 382. Such regulations shall provide that any such net capital loss used in a post-change year shall reduce the section 382 limitation which is applied to pre-change losses under section 382 for such year.
(c)Foreign tax credits If an ownership change occurs with respect to a corporation, the amount of any excess foreign taxes under section 904(c) for any taxable year before the 1st post-change taxable year shall be limited under regulations which shall be consistent with purposes of this section and section 382.
(d)Pro ration rules for year which includes change For purposes of this section, rules similar to the rules of subsections (b)(3) and (d)(1)(B) of section 382 shall apply.
(e)Definitions Terms used in this section shall have the same respective meanings as when used in section 382, except that appropriate adjustments shall be made to take into account that the limitations of this section apply to credits and net capital losses.
(Added Pub. L. 92–178, title III, § 302(a), Dec. 10, 1971, 85 Stat. 521; amended Pub. L. 94–455, title VIII, § 806(f)(2), title X, § 1031(b)(5), title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1605, 1623, 1834; Pub. L. 95–30, title II, § 202(d)(3)(B), (C), May 23, 1977, 91 Stat. 148; Pub. L. 96–222, title I, § 103(a)(6)(G)(xiii), Apr. 1, 1980, 94 Stat. 211; Pub. L. 96–223, title II, § 232(b)(2)(C), (D), Apr. 2, 1980, 94 Stat. 276; Pub. L. 97–34, title II, § 221(b)(1)(C), (D), title III, § 331(d)(1)(C), (D), Aug. 13, 1981, 95 Stat. 246, 294;
Pub. L. 98–369, div. A, title IV, § 474(r)(12)(A), (B), July 18, 1984, 98 Stat. 841; Pub. L. 99–514, title VI, § 621(b), (e)(1), Oct. 22, 1986, 100 Stat. 2265, 2266.)
Connections13 cite this · traces to 7
53 references not yet in our index
  • Pub. L. 92–178, title III, § 302(a)
  • 85 Stat. 521
  • Pub. L. 94–455, title VIII, § 806(f)(2)
  • 90 Stat. 1605
  • Pub. L. 95–30, title II, § 202(d)(3)(B)
  • 91 Stat. 148
  • Pub. L. 96–222, title I, § 103(a)(6)(G)(xiii)
  • 94 Stat. 211
  • Pub. L. 96–223, title II, § 232(b)(2)(C)
  • 94 Stat. 276
  • Pub. L. 97–34, title II, § 221(b)(1)(C)
  • 95 Stat. 246
  • Pub. L. 98–369, div. A, title IV, § 474(r)(12)(A)
  • 98 Stat. 841
  • Pub. L. 99–514, title VI, § 621(b)
  • 100 Stat. 2265
  • Pub. L. 99–514, § 621(b)
  • Pub. L. 99–514, § 621(e)(1)
  • Pub. L. 94–455, § 806(f)(2)
  • Pub. L. 98–369, § 474(r)(12)(A)(ii)
  • Pub. L. 98–369, § 474(r)(12)(B)(ii)
  • Pub. L. 98–369, § 474(r)(12)(A)(i)
  • Pub. L. 98–369, § 474(r)(12)(B)(i)
  • Pub. L. 97–34, § 331(d)(1)(C)(ii)
  • Pub. L. 97–34, § 331(d)(1)(D)(i)
  • Pub. L. 97–34, § 331(d)(1)(C)(i)
  • Pub. L. 97–34, § 221(b)(1)(C)(ii)
  • Pub. L. 97–34, § 221(b)(1)(D)(i)
  • Pub. L. 97–34, § 221(b)(1)(C)(i)
  • Pub. L. 96–223, § 232(b)(2)(D)
  • Pub. L. 96–223, § 232(b)(2)(C)
  • Pub. L. 96–222
  • Pub. L. 95–30, § 202(d)(3)(C)
  • Pub. L. 95–30, § 202(d)(3)(B)
  • Pub. L. 94–455
  • section 621(b) of Pub. L. 99–514
  • section 621(f) of Pub. L. 99–514
  • section 806(f)(1) of Pub. L. 94–455
  • section 621(f)(2) of Pub. L. 99–514
  • Pub. L. 98–369
+ 13 more
Citation graph
cites case law
§ 383
Special limitations on certain excess credits, etc.
Stat.×9
Fed. Reg.×4
Pub. L.Pub. L. 92–178, title III, § 302(a)
Stat.85 Stat. 521
Pub. L.Pub. L. 94–455, title VIII, § 806(f)(2)
Stat.90 Stat. 1605
Pub. L.Pub. L. 95–30, title II, § 202(d)(3)(B)
Cites 60 · showing 12Cited by 13 across 2 sources
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