§ 39. Carryback and carryforward of unused credits
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/usc/title-26/section-39A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)In general
(1)1-year carryback and 20-year carryforward If the sum of the business credit carryforwards to the taxable year plus the amount of the current year business credit for the taxable year exceeds the amount of the limitation imposed by subsection
(c)of section 38 for such taxable year (hereinafter in this section referred to as the “unused credit year”), such excess (to the extent attributable to the amount of the current year business credit) shall be—
(A)a business credit carryback to the taxable year preceding the unused credit year, and
(B)a business credit carryforward to each of the 20 taxable years following the unused credit year,
and, subject to the limitations imposed by subsections
(b)and (c), shall be taken into account under the provisions of section 38(a) in the manner provided in section 38(a).
(2)Amount carried to each year
(A)Entire amount carried to first year The entire amount of the unused credit for an unused credit year shall be carried to the earliest of the 21 taxable years to which (by reason of paragraph (1)) such credit may be carried.
(B)Amount carried to other 20 years The amount of the unused credit for the unused credit year shall be carried to each of the other 20 taxable years to the extent that such unused credit may not be taken into account under section 38(a) for a prior taxable year because of the limitations of subsections
(b)and (c).
(3)5-year carryback for marginal oil and gas well production credit Notwithstanding subsection (d), in the case of the marginal oil and gas well production credit—
(A)this section shall be applied separately from the business credit (other than the marginal oil and gas well production credit),
(B)paragraph
(1)shall be applied by substituting “each of the 5 taxable years” for “the taxable year” in subparagraph
(A)thereof, and
(C)paragraph
(2)shall be applied—
(i)by substituting “25 taxable years” for “21 taxable years” in subparagraph
(A)thereof, and
(ii)by substituting “24 taxable years” for “20 taxable years” in subparagraph
(B)thereof.
(4)3-year carryback for applicable credits Notwithstanding subsection (d), in the case of any applicable credit (as defined in section 6417(b))—
(A)this section shall be applied separately from the business credit (other than the applicable credit),
(B)paragraph
(1)shall be applied by substituting “each of the 3 taxable years” for “the taxable year” in subparagraph
(A)thereof, and
(C)paragraph
(2)shall be applied—
(i)by substituting “23 taxable years” for “21 taxable years” in subparagraph
(A)thereof, and
(ii)by substituting “22 taxable years” for “20 taxable years” in subparagraph
(B)thereof.
(b)Limitation on carrybacks The amount of the unused credit which may be taken into account under section 38(a)(3) for any preceding taxable year shall not exceed the amount by which the limitation imposed by section 38(c) for such taxable year exceeds the sum of—
(1)the amounts determined under paragraphs
(1)and
(2)of section 38(a) for such taxable year, plus
(2)the amounts which (by reason of this section) are carried back to such taxable year and are attributable to taxable years preceding the unused credit year.
(c)Limitation on carryforwards The amount of the unused credit which may be taken into account under section 38(a)(1) for any succeeding taxable year shall not exceed the amount by which the limitation imposed by section 38(c) for such taxable year exceeds the sum of the amounts which, by reason of this section, are carried to such taxable year and are attributable to taxable years preceding the unused credit year.
(d)Transitional rule No portion of the unused business credit for any taxable year which is attributable to a credit specified in section 38(b) or any portion thereof may be carried back to any taxable year before the first taxable year for which such specified credit or such portion is allowable (without regard to subsection (a)).
(Added Pub. L. 98–369, div. A, title IV, § 473, July 18, 1984, 98 Stat. 828; amended Pub. L. 99–514, title II, § 231(d)(3)(C)(i), title XVIII, § 1846, Oct. 22, 1986, 100 Stat. 2179, 2856; Pub. L. 100–647, title I, § 1002(l)(26), Nov. 10, 1988, 102 Stat. 3381; Pub. L. 101–508, title XI, §§ 11511(b)(2), 11611(b)(2), 11801(a)(2), Nov. 5, 1990, 104 Stat. 1388–485, 1388–503, 1388–520; Pub. L. 102–486, title XIX, § 1914(c), Oct. 24, 1992, 106 Stat. 3023; Pub. L. 103–66, title XIII, §§ 13302(a)(2), 13322(d), 13443(b)(2), Aug. 10, 1993, 107 Stat. 555, 563, 569;
Pub. L. 104–188, title I, §§ 1205(c), 1703(n)(1), Aug. 20, 1996, 110 Stat. 1775, 1877; Pub. L. 105–34, title VII, § 701(b)(1), title X, § 1083(a), Aug. 5, 1997, 111 Stat. 869, 951; Pub. L. 105–206, title VI, § 6010(n), July 22, 1998, 112 Stat. 816; Pub. L. 106–554, § 1(a)(7) [title I, § 121(b)(2)], Dec. 21, 2000, 114 Stat. 2763, 2763A–610; Pub. L. 107–16, title VI, § 619(c)(1), June 7, 2001, 115 Stat. 110; Pub. L. 108–357, title II, § 245(b)(1), title III, § 341(c), Oct. 22, 2004, 118 Stat. 1447, 1487;
Pub. L. 109–135, title IV, § 412(g), Dec. 21, 2005, 119 Stat. 2637; Pub. L. 111–240, title II, § 2012(a), (b), Sept. 27, 2010, 124 Stat. 2554; Pub. L. 115–141, div. U, title IV, § 401(b)(5)(E), (F), Mar. 23, 2018, 132 Stat. 1202; Pub. L. 117–169, title I, § 13801(d), Aug. 16, 2022, 136 Stat. 2012.)
Connections49 cite this · traces to 17
Cited by 49 sections · top 40
public-private-law
U.S. Code
- § 38General business credit
- § 46Amount of credit
- § 108Income from discharge of indebtedness
- § 9502Airport and Airway Trust Fund
- § 163Interest
- § 6655Failure by corporation to pay estimated income tax
- § 6501Limitations on assessment and collection
- § 904Limitation on credit
- § 143Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond
- § 40Alcohol, etc., used as fuel
- § 6427Fuels not used for taxable purposes
- § 1016Adjustments to basis
- § 6033Returns by exempt organizations
- § 34Certain uses of gasoline and special fuels
- § 117Qualified scholarships
- § 1245Gain from dispositions of certain depreciable property
- § 59Other definitions and special rules
- § 1561Limitation on accumulated earnings credit in the case of certain controlled corporations
- § 1298Special rules
- § 958Rules for determining stock ownership
- § 135Income from United States savings bonds used to pay higher education tuition and fees
- § 1394Tax-exempt enterprise zone facility bonds
- § 1017Discharge of indebtedness
- § 1397CEnterprise zone business defined
statutes-at-large
- Public Law 97–424To authorize appropriations for construction of certain highways in accordance with title 23, United States Code, for highway safety, for mass transportation in urban and rural areas, and for other purposes
- Public Law 91–258
- Public Law 108–357To amend the Internal Revenue Code of 1986 to remove impediments in such Code and make our manufacturing, service, and high-technology businesses and workers more competitive and productive both at Oct. 22, 2004[[H
- Public Law 95–599To authorize appropriations for the construction of certain highways in accordance with title 23 of the United States Code, for highway safety, for mass transportation in urban and in rural areas, and for other purposes
- Public Law 94–12To amend the Internal Revenue Code of 1954 to provide for a refund of 1874 individual income taxes, to increase the low income allowance and the percentage standard deduction, to provide a credit for personal exemptions and a credit for certain earned income, to increase the investment credit and th
- Public Law 115–141To amend the State Department Basic Authorities Act of 1956 to include severe forms of trafficking in persons within the definition of transnational organized crime for purposes of the rewards program of the Department of State, and for other purposes
- Public Law 98–369To provide for tax reform, and for deficit reduction
- Public Law 96–223To impose a windfall profit tax on domestic crude oil, and for other purposes
- Public Law 94–530To amend the Internal Revenue Code of 1854 to exempt certain aircraft museums from federal fuel taxes and the Federal tax on the use of civil aircraft, and for other purposes
- Public Law 111–240To create the Small Business Lending Fund Program to direct the Secretary of the Treasury to make capital investments in eligible institutions in order to increase the availability of credit for small businesses, to amend the Internal Revenue Code of 1986 to provide tax incentives for small business
- Public Law 105–32Waiving certain enrollment requirements with respect to two specified bills of the One Hundred Fifth Congress
- Public Law 95–618To provide tax incentives for the production and conservation of energy, and for other purposes
- Public Law 105–206To amend the Internal Revenue Code of 1986 to restructure and reform the Internal Revenue Service, and for other purposes
- Public Law 104–188To provide tax relief for small businesses, to protect jobs, to create opportunities, to increase the take home pay of workers, to amend the Portal-to-Portal Act of 1947 relating to the payment of wages to employees who use employer owned vehicles, and to amend the Fair Labor Standards Act of 1938 t
- Public Law 94–455To reform the tax laws of the United States
Traces to 17 documents
public-private-law
U.S. Code
- Certain uses of gasoline and special fuels§ 34
- Overpayments of tax§ 37
- Elective payment of applicable credits§ 6417
- General business credit§ 38
- Tax imposed§ 1
- Adjustments to basis§ 1016
- Credit for producing fuel from a nonconventional source§ 45K
- Failure to meet disclosure requirements applicable to quid pro quo contributions§ 6714
- Trust Funds§ 401
- Enhanced oil recovery credit§ 43
- Credit for increasing research activities§ 41
- Energy credit§ 48
- Expenses for household and dependent care services necessary for gainful employment§ 21
- Adoption expenses§ 23
- Qualified pension, profit-sharing, and stock bonus plans§ 401
95 references not yet in our index
- Pub. L. 98–369, div. A, title IV, § 473
- 98 Stat. 828
- Pub. L. 99–514, title II, § 231(d)(3)(C)(i)
- 100 Stat. 2179
- Pub. L. 100–647, title I, § 1002
- 102 Stat. 3381
- Pub. L. 101–508, title XI
- 104 Stat. 1388–485
- Pub. L. 102–486, title XIX, § 1914(c)
- 106 Stat. 3023
- Pub. L. 103–66, title XIII
- 107 Stat. 555
- Pub. L. 104–188, title I
- 110 Stat. 1775
- Pub. L. 105–34, title VII, § 701(b)(1)
- 111 Stat. 869
- Pub. L. 105–206, title VI, § 6010(n)
- 112 Stat. 816
- Pub. L. 106–554, § 1(a)(7) [title I, § 121(b)(2)]
- 114 Stat. 2763
- Pub. L. 107–16, title VI, § 619(c)(1)
- 115 Stat. 110
- Pub. L. 108–357, title II, § 245(b)(1)
- 118 Stat. 1447
- Pub. L. 109–135, title IV, § 412(g)
- 119 Stat. 2637
- Pub. L. 111–240, title II, § 2012(a)
- 124 Stat. 2554
- 132 Stat. 1202
- 136 Stat. 2012
- Pub. L. 111–240, § 2012(b)
- Pub. L. 111–240, § 2012(a)
- Pub. L. 109–135, § 412(g)(1)
- Pub. L. 109–135, § 412(g)(2)
- Pub. L. 108–357, § 341(c)
- Pub. L. 108–357, § 245(b)(1)
- Pub. L. 107–16, § 619(c)(1)
- Pub. L. 106–554
- Pub. L. 105–206
- Pub. L. 105–34, § 1083(a)(2)
+ 55 more
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§ 39
Carryback and carryforward of unused credits
U.S.C.×26
Stat.×22
Pub. L.×1
Pub. L.Pub. L. 98–369, div. A, title IV, § 473
Stat.98 Stat. 828
Pub. L.Pub. L. 99–514, title II, § 231(d)(3)(C)(i)
Cites 112 · showing 12Cited by 49 across 3 sources