,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #aiif  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #bf1 #bjai ,ms4  
,mc,sally 7= h]self1 ,ms4 ,s9ema1 ,mrs4 
,blackburn1 ,mr4 ,cornyn1 & ,mr4        
,alex&]7 introduc$ ! foll[+ bill2 :i* 0 
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to cl>ify !       
application ( ! net op]at+ loss         
d$uction4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,net ,op]at+ ,loss         
,cl>ification ,act ( #bjai4  #b4        
,te*nical am5dm5ts relat+ to ! net      
op]at+ loss d$uction  7a7 ,cl>ification 
( effective date ( net op]at+ loss rules
 ,section #accjb7;e7 ( ,public ,law     
#aae-ig is am5d$--  7#a7 by /rik+ all t 
foll[s %all apply to 9 p>agraph 7#a7 &  
ins]t+ taxable ye>s to :i* losses aris+ 
9 taxable ye>s beg9n+ aft] ,decemb] #ca1
 #bjag1 may be c>ri$41 &  7#b7 by /rik+ 
end+ 9 p>agraph 7#b7 & ins]t+ beg9n+4   
7b7 ,cl>ification ( net op]at+ loss     
c>ryback = f>m+ losses & c]ta9 insurance

 companies ,section #agb7;b77#a77;,a7 ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ to read z foll[s3  7,a7 ,g5]al    
rule ,a net op]at+ loss = any taxable   
ye>-- 7i7 %all be a net op]at+ loss     
c>ryback to ! ext5t provid$ 9           
subp>agraphs 7,b7 & 7,c77i71 &  7ii7    
except z provid$ 9 subp>agraph 7,c77ii71
 %all be a net op]at+ loss c>ryov]--    
7,i7 9 ! case ( a net op]at+ loss aris+ 
9 a taxable ye> beg9n+ be=e ,janu>y #a1 
#bjah1 to ea* ( ! #bj taxable ye>s      
foll[+ ! taxable ye> ( ! loss1 &  7,,ii7
 9 ! case ( a net op]at+ loss aris+ 9 a 
taxable ye> beg9n+ aft] ,decemb] #ca1   
#bjag1 to ea* taxable ye> foll[+ !      
taxable ye> ( ! loss4  4  7c7           
,cl>ification ( det]m9ation ( taxable   
income ,section #agb7;a77#b7 ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ d$uction all[able "u ?is       
section & ins]t+ d$uctions all[able "u  
?is section & sections #aii;,a & #bej4  
7d7 ,cl>ification ( ord] & me?od ( net  
op]at+ loss calculation  7#a7 ,9 g5]al  

,section #agb ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by r$esignat+         
subsection 7g7 z subsection 7h7 & by    
ins]t+ aft] subsection 7f7 ! foll[+ new 
subsection3  7g7 ,special rule = losses 
f taxable ye>s beg9n+ be=e ,janu>y #a1  
#bjah ,9 ! case ( a taxable ye> 7h]eaft]
 9 ?is subsection ref]r$ to z ! curr5t  
ye>7 to :i* is c>ri$ a net op]at+ loss  
aris+ 9 a taxable ye> beg9n+ be=e       
,janu>y #a1 #bjah1 ! am\nt det]m9$ "u   
subsection 7a7 = ! curr5t taxable ye>   
%all be an am\nt equal to ! sum (--     
7#a7 ! aggregate am\nt ( su* net op]at+ 
losses c>ri$ to ! curr5t taxable ye>1 & 
7#b7 ! less] (--  7,a7 ! aggregate am\nt
 ( net op]at+ losses aris+ 9 taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjag1   
:i* are c>ri$ to ! curr5t taxable ye>1  
or  7,b7 #hj p]c5t ( ! excess 7if any7  
(-- 7i7 taxable income comput$ )\t reg>d
 to ! d$uctions all[able "u ?is section 
& sections #aii;,a & #bej1 ov]  7ii7 !  
am\nt det]m9$ "u p>agraph 7#a74  4  7#b7
 ,con=m+ am5dm5t ,section               

#agb7;b77#b77;,c7 ( su* ,code is am5d$  
to read z foll[s3  7,c7 be r$uc$ by #bj 
p]c5t ( taxable income comput$ "u       
section 7a77#b7 = su* prior taxable ye> 
7or if subsection 7g7 applies to su*    
prior taxable ye>1 #bj p]c5t ( ! excess 
describ$ 9 subsection 7g77#b77;,b7 = su*
 ye>74  4  7e7 ,con=m+ am5dm5ts to rules
 reg>d+ ,r,e,m,i,cs ,section            
#hfj;,e7a77#c77;,b7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by /rik+ all t  
foll[s = purposes ( & ins]t+ subsection 
7a77#b71 & ! second s5t5ce ( subsection 
7b77#b71 ( section #agb44  7f7          
,accel]at$ refunds ,9 ! case ( a net    
op]at+ loss c>ryback :i* is all[$ = a   
taxable ye> by reason ( ! am5dm5ts made 
by subsections 7a7 ?r\gh 7e71 an        
application "u section #fdaa7;a7 ( !    
,int]nal ,rev5ue ,code ( #aihf ) respect
 to su* c>ryback %all n fail to be      
treat$ z timely fil$ if fil$ by ! lat]  
(--  7#a7 ! date :i* is #d mon?s aft] ! 
date ( ! enactm5t ( ?is ,act1 or  7#b7 !
 date o!rwise applicable "u section     

#fdaa7;a7 ( su* ,code4  7g7 ,effective  
date ,! am5dm5ts made by subsections 7a7
 ?r\gh 7e7 %all take effect z if includ$
 9 ! provision ( ,public ,law #aae-ig to
 :i* !y relate4