Net Operating Loss (NOL) Carryback Act - Amends the Internal Revenue Code to allow a five-year carryback of net operating losses, including the operating losses of life insurance companies, incurred in 2008 and 2009.
Denies such extended loss carryover period to: (1) taxpayers in whom the federal government acquires an equity interest under the Emergency Economic Stabilization Act of 2008; (2) the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac); and (3) members of certain affiliated groups.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2452 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 2452
To amend the Internal Revenue Code of 1986 to allow a 5-year carryback
of operating losses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 15, 2009
Mr. Neal of Massachusetts (for himself, Mr. Tiberi, Mr. Pascrell, Mr.
Davis of Alabama, Ms. Bean, and Mr. Hodes) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow a 5-year carryback
of operating losses, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Net Operating Loss (NOL) Carryback
Act''.
SEC. 2. 5-YEAR CARRYBACK OF OPERATING LOSSES.
(a) In General.--Subparagraph (H) of section 172(b)(1) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(H) Carryback for 2008 and 2009 net operating
losses.--
``(i) In general.--In the case of an
applicable 2008 or 2009 net operating loss with
respect to which the taxpayer has elected the
application of this subparagraph--
``(I) subparagraph (A)(i) shall be
applied by substituting any whole
number elected by the taxpayer which is
more than 2 and less than 6 for `2',
``(II) subparagraph (E)(ii) shall
be applied by substituting the whole
number which is one less than the whole
number substituted under subclause (I)
for `2', and
``(III) subparagraph (F) shall not
apply.
``(ii) Applicable 2008 or 2009 net
operating loss.--For purposes of this
subparagraph, the term `applicable 2008 or 2009
net operating loss' means--
``(I) the taxpayer's net operating
loss for any taxable year ending in
2008 or 2009, or
``(II) if the taxpayer elects to
have this subclause apply in lieu of
subclause (I), the taxpayer's net
operating loss for any taxable year
beginning in 2008 or 2009.
``(iii) Election.--Any election under this
subparagraph shall be made in such manner as
may be prescribed by the Secretary, and shall
be made by the due date (including extension of
time) for filing the taxpayer's return for the
taxable year of the net operating loss. Any
such election, once made, shall be irrevocable.
``(iv) Coordination with alternative tax
net operating loss deduction.--In the case of a
taxpayer who elects to have clause (ii)(II)
apply, section 56(d)(1)(A)(ii) shall be applied
by substituting `ending during 2001 or 2002 or
beginning during 2008 or 2009' for `ending
during 2001, 2002, 2008, or 2009'.''.
(b) Alternative Tax Net Operating Loss Deduction.--Subclause (I) of
section 56(d)(1)(A)(ii) is amended to read as follows:
``(I) the amount of such deduction
attributable to the sum of carrybacks
of net operating losses from taxable
years ending during 2001, 2002, 2008,
or 2009 and carryovers of net operating
losses to such taxable years, or''.
(c) Loss From Operations of Life Insurance Companies.--Subsection
(b) of section 810 is amended by adding at the end the following new
paragraph:
``(4) Carryback for 2008 and 2009 losses.--
``(A) In general.--In the case of an applicable
2008 or 2009 loss from operations with respect to which
the taxpayer has elected the application of this
paragraph, paragraph (1)(A) shall be applied, at the
election of the taxpayer, by substituting `5' or `4'
for `3'.
``(B) Applicable 2008 or 2009 loss from
operations.--For purposes of this paragraph, the term
`applicable 2008 or 2009 loss from operations' means--
``(i) the taxpayer's loss from operations
for any taxable year ending in 2008 or 2009, or
``(ii) if the taxpayer elects to have this
clause apply in lieu of clause (i), the
taxpayer's loss from operations for any taxable
year beginning in 2008 or 2009.
``(C) Election.--Any election under this paragraph
shall be made in such manner as may be prescribed by
the Secretary, and shall be made by the due date
(including extension of time) for filing the taxpayer's
return for the taxable year of the loss from
operations. Any such election, once made, shall be
irrevocable.
``(D) Coordination with alternative tax net
operating loss deduction.--In the case of a taxpayer
who elects to have subparagraph (B)(ii) apply, section
56(d)(1)(A)(ii) shall be applied by substituting
`ending during 2001 or 2002 or beginning during 2008 or
2009' for `ending during 2001, 2002, 2008, or 2009'.''.
(d) Anti-Abuse Rules.--The Secretary of Treasury or the Secretary's
designee shall prescribe such rules as are necessary to prevent the
abuse of the purposes of the amendments made by this section, including
anti-stuffing rules, anti-churning rules (including rules relating to
sale-leasebacks), and rules similar to the rules under section 1091 of
the Internal Revenue Code of 1986 relating to losses from wash sales.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
net operating losses arising in taxable years ending after
December 31, 2007.
(2) Alternative tax net operating loss deduction.--The
amendment made by subsection (b) shall apply to taxable years
ending after 1997.
(3) Loss from operations of life insurance companies.--The
amendment made by subsection (d) shall apply to losses from
operations arising in taxable years ending after December 31,
2007.
(4) Transitional rule.--In the case of a net operating loss
(or, in the case of a life insurance company, a loss from
operations) for a taxable year ending before the date of the
enactment of this Act--
(A) any election made under section 172(b)(3) or
810(b)(3) of the Internal Revenue Code of 1986 with
respect to such loss may (notwithstanding such section)
be revoked before the applicable date,
(B) any election made under section 172(b)(1)(H) or
810(b)(4) of such Code with respect to such loss shall
(notwithstanding such section) be treated as timely
made if made before the applicable date, and
(C) any application under section 6411(a) of such
Code with respect to such loss shall be treated as
timely filed if filed before the applicable date.
For purposes of this paragraph, the term ``applicable date''
means the date which is 60 days after the date of the enactment
of this Act.
(f) Exception for TARP Recipients.--The amendments made by this
section shall not apply to--
(1) any taxpayer if--
(A) the Federal Government acquires, at any time,
an equity interest in the taxpayer pursuant to the
Emergency Economic Stabilization Act of 2008, or
(B) the Federal Government acquires, at any time,
any warrant (or other right) to acquire any equity
interest with respect to the taxpayer pursuant to such
Act,
(2) the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation, and
(3) any taxpayer which at any time in 2008 or 2009 is a
member of the same affiliated group (as defined in section 1504
of the Internal Revenue Code of 1986, determined without regard
to subsection (b) thereof) as a taxpayer described in paragraph
(1) or (2).
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E1180)
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line