,,ii #aafth ,,congress #b;d ,session ,s4 #cfdj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #g1 #bjbj,mr4 ,whitehouse 7for himself1 ,mr4 ,brown1 ,mr4 ,leahy1 ,mr4 ,sanders1 ,mr4 ,udall1 ,mr4 ,blumenthal1 ,mr4 ,durbin1 ,mr4 ,markey1 ,mr4 ,van ,hollen1 ,mr4 ,king1 ,ms4 ,warren1 ,ms4 ,harris1 ,mr4 ,carper1 ,ms4 ,klobuchar1 ,mr4 ,coons1 ,mr4 ,reed1 ,mr4 ,murphy1 ,mrs4 ,gillibrand1 ,mr4 ,booker1 ,ms4 ,baldwin1 ,ms4 ,smith1 ,ms4 ,hirono1 ,mr4 ,schatz1 and ,mr4 ,merkley7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to allow certain taxpayers a #b-year carryback of net operating losses and to restore and make permanent the limitation on excess business losses of non-corporate taxpayers4 #a4 ,short title ,this ,act may be cited as the ,,cares ,windfall for the ,wealthiest ,repeal ,act4 #b4 ,limitation on excess business losses of non-corporate taxpayers restored and made permanent 7a7 ,in general ,section #dfa7l77#a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,limitation ,in the case of taxable year of a taxpayer other than a corporation beginning after ,december #ca1 #bjag1 any excess business loss of the taxpayer for the taxable year shall not be allowed4 4 7b7 ,conforming amendment ,section #dfa of such ,code is amended by striking subsection 7j74 7c7 ,effective date ,the amendments made by this section shall take effect as if included in section #bcjd7;a7 of the ,coronavirus ,aid1 ,relief1 and ,economic ,security ,act4 #c4 ,certain taxpayers allowed #b-year carryback of net operating losses arising in certain periods 7a7 ,two-,year carryback of losses arising in certain periods 7#a7 ,in general ,section #agb7;b77#a77;,d77i7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking arising in a taxable year beginning after ,december #ca1 #bjag1 and ending before ,january #a1 #bjba and inserting arising in the first taxable year beginning after ,august #ca1 #bjai1 and 7,b7 by striking #e taxable years in subclause 7,i7 and inserting #b taxable years4 7#b7 ,conforming amendments 7,a7 ,the heading for section #agb7;b77#a77;,d7 of such ,code is amended by striking #bjah1 #bjai1 and #bjbj and inserting certain periods4 7,b7 ,section #agb7;b77#a77;,d77v7 of such ,code is amended-- 7i7 by striking subclause 7,,ii71 and 7ii7 by striking ,special rules and all that follows through ,if the #e-year carryback period and inserting the following3 ,special rule for election under paragraph 7#c7 to exclude section #ife years4--,if the #b-year carryback period4 7b7 ,carryback only allowed for small businesses 7#a7 ,in general ,section #agb7;b77#a77;,d77i7 of such ,code is amended by striking net operating loss arising and inserting net operating loss of an eligible small business arising4 7#b7 ,eligible small business ,section #agb7;b77#a77;,d7 of such ,code is amended by adding at the end the following new clause3 7vi7 ,eligible small business ,for purposes of clause 7i71 the term eligible small business means a corporation or partnership which-- 7,i7 meets the gross receipts test of section #ddh7;c7 7applied by substituting #ae1jjj1jjj for #be1jjj1jjj each place it appears7 for the taxable year in which the loss arose 7or1 in the case of a sole proprietorship1 which would meet such test if such proprietorship were a corporation71 and 7,,ii7 elects the application of this subparagraph4 ,any election under subclause 7,,ii7 shall be made in such manner as may be prescribed by the ,secretary1 and shall be made by the due date 7including extension of time7 for filing the return for the taxpayer's the taxable year in which the loss arose4 ,any such election1 once made1 shall be irrevocable4 4 7c7 ,disallowed for certain taxpayers ,section #agb7;b77#a77;,d7 of such ,code1 as amended by the preceding provisions of this ,act1 is amended by adding at the end the following new clauses3 7vii7 ,carryback disallowed for certain taxpayers ,clause 7i7 shall not apply with respect to any loss arising in a taxable year in which-- 7,i7 the taxpayer 7or any related person7 is not allowed a deduction under this chapter for the taxable year by reason of section #afb7m7 or section #bhj;,g1 or 7,,ii7 the taxpayer 7or any related person7 is a specified corporation for the taxable year4 7viii7 ,specified corporation ,for purposes of clause 7vii7-- 7,i7 ,in general ,the term specified corporation means1 with respect to any taxable year1 a corporation the aggregate distributions 7including redemptions7 of which during all taxable years ending after ,december #ca1 #bjag1 exceed the sum of applicable stock issued by such corporation and #e percent of the fair market value of the stock of such corporation as of the last day of the taxable year4 7,,ii7 ,applicable stock issued ,the term applicable stock issued means1 with respect to any corporation1 the aggregate value of stock issued by the corporation during all taxable years ending after ,december #ca1 #bjag1 in exchange for money or property other than stock in such corporation4 7,,iii7 ,certain preferred stock disregarded ,for purposes of subclause 7,i71 stock described in section #aejd7;a77#d71 and distributions 7including redemptions7 with respect to such stock1 shall be disregarded4 7ix7 ,related person ,for purposes of clause 7vii71 a person is a related person to a taxpayer if the related person bears a relationship to the taxpayer specified in section #bfg7;b7 or section #gjg7;b77#a74 4 7d7 ,advance carryback of estimated net operating losses arising in #bjbj 7#a7 ,in general ,in the case of any taxpayer expecting a net operating loss for the first taxable year beginning after ,august #ca1 #bjai1 such taxpayer may file an application with the ,secretary of the ,treasury for an advance carryback adjustment of the tax for a prior taxable year that would be affected1 by reason of the amendments made by this section1 by so much of such expected net operating loss as does not exceed #ajj1jjj4 7#b7 ,application ,the application filed under paragraph 7#a7 shall set forth in such detail and with such supporting data and explanation as the ,secretary may require an estimate of the taxpayer's net operating loss that will arise in such taxable year4 7#c7 ,due date for application ,an application under this subsection may not be filed later than the due date 7including extensions of time7 of the return for the first taxable year beginning after ,august #ca1 #bjai4 7#d7 ,allowance of adjustments ,not later than #cj days after the date on which an application for an advance carryback adjustment is filed under paragraph 7#a71 the ,secretary shall dispose of such application under rules similar to the rules of section #fdaa of the ,internal ,revenue ,code of #aihf4 7#e7 ,reduction of net operating loss for application year ,the amount of any net operating loss 7determined without regard to this paragraph7 of the taxpayer for any taxable year from which an advance carryback adjustment is made under this subsection shall be reduced 7but not below zero7 by the amount of estimated net operating loss taken into account in determining an advance carryback adjustment of the taxpayer under this subsection4 7#f7 ,recapture ,the taxpayer's tax imposed by chapter #a for such taxable year shall be increased by the excess 7if any7 of-- 7,a7 the reduction in tax for all prior taxable years by reason of an advance carryback adjustment under this subsection1 over 7,b7 the reduction in tax for all prior taxable years by reason of a net operating loss finally arising in the taxable year to which the application under this subsection relates4 7#g7 ,denial of double benefit ,the ,secretary shall provide such rules or guidance as is necessary for coordination of the application of this section with the provision of section #fafd of the ,internal ,revenue ,code of #aihf4 7#h7 ,references to ,secretary ,any reference to the ,secretary of the ,treasury in this subsection shall be treated as including a reference to the ,secretary's delegate4 7e7 ,effective date ,the amendments made by this section shall take effect as if included in the enactment of section #bcjc7;b7 of the ,coronavirus ,aid1 ,relief1 and ,economic ,security ,act4