,,ii  #aaf? ,,congress  #b;d ,session   
,s4 #cfdj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #g1 #bjbj,mr4     
,:iteh\se 7= himself1 ,mr4 ,br[n1 ,mr4  
,leahy1 ,mr4 ,s&]s1 ,mr4 ,udall1 ,mr4   
,blum5?al1 ,mr4 ,durb91 ,mr4 ,m>key1    
,mr4 ,van ,holl51 ,mr4 ,k+1 ,ms4 ,w>r51 
,ms4 ,h>ris1 ,mr4 ,c>p]1 ,ms4 ,klobu*>1 
,mr4 ,coons1 ,mr4 ,re$1 ,mr4 ,murphy1   
,mrs4 ,gillibr&1 ,mr4 ,book]1 ,ms4      
,baldw91 ,ms4 ,smi?1 ,ms4 ,hirono1 ,mr4 
,s*atz1 & ,mr4 ,m]kley7 introduc$ !     
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,f9ance  ,a ,,bill   
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to all[ c]ta9 taxpay]s a #b-ye>   
c>ryback ( net op]at+ losses & to re/ore
 & make p]man5t ! limitation on excess  
bus9ess losses ( non-corporate taxpay]s4
  #a4 ,%ort title ,?is ,act may be cit$ 
z ! ,,c>es ,w9dfall = ! ,weal?ie/       
,repeal ,act4  #b4 ,limitation on excess
 bus9ess losses ( non-corporate taxpay]s
 re/or$ & made p]man5t  7a7 ,9 g5]al    
,section #dfa7l77#a7 ( ! ,int]nal       

,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  7#a7 ,limitation ,9 ! case (  
taxable ye> ( a taxpay] o!r ?an a       
corporation beg9n+ aft] ,decemb] #ca1   
#bjag1 any excess bus9ess loss ( !      
taxpay] = ! taxable ye> %all n be all[$4
  4  7b7 ,con=m+ am5dm5t ,section #dfa (
 su* ,code is am5d$ by /rik+ subsection 
7j74  7c7 ,effective date ,! am5dm5ts   
made by ?is section %all take effect z  
if includ$ 9 section #bcjd7;a7 ( !      
,coronavirus ,aid1 ,relief1 & ,economic 
,security ,act4  #c4 ,c]ta9 taxpay]s    
all[$ #b-ye> c>ryback ( net op]at+      
losses aris+ 9 c]ta9 p]iods  7a7        
,two-,ye> c>ryback ( losses aris+ 9     
c]ta9 p]iods  7#a7 ,9 g5]al ,section    
#agb7;b77#a77;,d77i7 ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$-- 7,a7 by
 /rik+ aris+ 9 a taxable ye> beg9n+ aft]
 ,decemb] #ca1 #bjag1 & end+ be=e       
,janu>y #a1 #bjba & ins]t+ aris+ 9 !    
fir/ taxable ye> beg9n+ aft] ,augu/ #ca1
 #bjai1 &  7,b7 by /rik+ #e taxable ye>s
 9 subclause 7,i7 & ins]t+ #b taxable   

ye>s4  7#b7 ,con=m+ am5dm5ts  7,a7 ,!   
head+ = section #agb7;b77#a77;,d7 ( su* 
,code is am5d$ by /rik+ #bjah1 #bjai1 & 
#bjbj & ins]t+ c]ta9 p]iods4  7,b7      
,section #agb7;b77#a77;,d77v7 ( su*     
,code is am5d$-- 7i7 by /rik+ subclause 
7,,ii71 &  7ii7 by /rik+ ,special rules 
& all t foll[s ?r\gh ,if ! #e-ye>       
c>ryback p]iod & ins]t+ ! foll[+3       
,special rule = election "u p>agraph    
7#c7 to exclude section #ife ye>s4--,if 
! #b-ye> c>ryback p]iod4  7b7 ,c>ryback 
only all[$ = small bus9esses  7#a7 ,9   
g5]al ,section #agb7;b77#a77;,d77i7 (   
su* ,code is am5d$ by /rik+ net op]at+  
loss aris+ & ins]t+ net op]at+ loss ( an
 eligible small bus9ess aris+4  7#b7    
,eligible small bus9ess ,section        
#agb7;b77#a77;,d7 ( su* ,code is am5d$  
by add+ at ! end ! foll[+ new clause3   
7vi7 ,eligible small bus9ess ,= purposes
 ( clause 7i71 ! t]m eligible small     
bus9ess means a corporation or p>tn]%ip 
:i*-- 7,i7 meets ! gross receipts te/ ( 
section #ddh7;c7 7appli$ by sub/itut+   

#ae1jjj1jjj = #be1jjj1jjj ea* place x   
appe>s7 = ! taxable ye> 9 :i* ! loss    
arose 7or1 9 ! case ( a sole            
proprietor%ip1 :i* w\ld meet su* te/ if 
su* proprietor%ip 7 a corporation71 &   
7,,ii7 elects ! application ( ?is       
subp>agraph4  ,any election "u subclause
 7,,ii7 %all be made 9 su* mann] z may  
be prescrib$ by ! ,secret>y1 & %all be  
made by ! due date 7includ+ ext5sion (  
"t7 = fil+ ! return = ! taxpay]'s !     
taxable ye> 9 :i* ! loss arose4 ,any su*
 election1 once made1 %all be           
irrevocable4  4  7c7 ,disall[$ = c]ta9  
taxpay]s ,section #agb7;b77#a77;,d7 (   
su* ,code1 z am5d$ by ! prec$+          
provisions ( ?is ,act1 is am5d$ by add+ 
at ! end ! foll[+ new clauses3  7vii7   
,c>ryback disall[$ = c]ta9 taxpay]s     
,clause 7i7 %all n apply ) respect to   
any loss aris+ 9 a taxable ye> 9 :i*--  
7,i7 ! taxpay] 7or any relat$ p]son7 is 
n all[$ a d$uction "u ?is *apt] = !     
taxable ye> by reason ( section #afb7m7 
or section #bhj;,g1 or  7,,ii7 ! taxpay]

 7or any relat$ p]son7 is a specifi$    
corporation = ! taxable ye>4  7viii7    
,specifi$ corporation ,= purposes (     
clause 7vii7-- 7,i7 ,9 g5]al ,! t]m     
specifi$ corporation means1 ) respect to
 any taxable ye>1 a corporation !       
aggregate di/ributions 7includ+         
r$emptions7 ( :i* dur+ all taxable ye>s 
end+ aft] ,decemb] #ca1 #bjag1 exce$ !  
sum ( applicable /ock issu$ by su*      
corporation & #e p]c5t ( ! fair m>ket   
value ( ! /ock ( su* corporation z ( !  
la/ day ( ! taxable ye>4  7,,ii7        
,applicable /ock issu$ ,! t]m applicable
 /ock issu$ means1 ) respect to any     
corporation1 ! aggregate value ( /ock   
issu$ by ! corporation dur+ all taxable 
ye>s end+ aft] ,decemb] #ca1 #bjag1 9   
ex*ange = money or prop]ty o!r ?an /ock 
9 su* corporation4  7,,iii7 ,c]ta9      
pref]r$ /ock disreg>d$ ,= purposes (    
subclause 7,i71 /ock describ$ 9 section 
#aejd7;a77#d71 & di/ributions 7includ+  
r$emptions7 ) respect to su* /ock1 %all 
be disreg>d$4  7ix7 ,relat$ p]son ,=    

purposes ( clause 7vii71 a p]son is a   
relat$ p]son to a taxpay] if ! relat$   
p]son be>s a relation%ip to ! taxpay]   
specifi$ 9 section #bfg7;b7 or section  
#gjg7;b77#a74  4  7d7 ,advance c>ryback 
( e/imat$ net op]at+ losses aris+ 9     
#bjbj  7#a7 ,9 g5]al ,9 ! case ( any    
taxpay] expect+ a net op]at+ loss = !   
fir/ taxable ye> beg9n+ aft] ,augu/ #ca1
 #bjai1 su* taxpay] may file an         
application ) ! ,secret>y ( ! ,treasury 
= an advance c>ryback adju/m5t ( ! tax =
 a prior taxable ye> t w\ld be affect$1 
by reason ( ! am5dm5ts made by ?is      
section1 by s mu* ( su* expect$ net     
op]at+ loss z does n exce$ #ajj1jjj4    
7#b7 ,application ,! application fil$ "u
 p>agraph 7#a7 %all set =? 9 su* detail 
& ) su* support+ data & explanation z ! 
,secret>y may require an e/imate ( !    
taxpay]'s net op]at+ loss t w arise 9   
su* taxable ye>4  7#c7 ,due date =      
application ,an application "u ?is      
subsection may n be fil$ lat] ?an ! due 
date 7includ+ ext5sions ( "t7 ( ! return

 = ! fir/ taxable ye> beg9n+ aft] ,augu/
 #ca1 #bjai4  7#d7 ,all[ance ( adju/m5ts
 ,n lat] ?an #cj days aft] ! date on :i*
 an application = an advance c>ryback   
adju/m5t is fil$ "u p>agraph 7#a71 !    
,secret>y %all dispose ( su* application
 "u rules simil> to ! rules ( section   
#fdaa ( ! ,int]nal ,rev5ue ,code (      
#aihf4  7#e7 ,r$uction ( net op]at+ loss
 = application ye> ,! am\nt ( any net   
op]at+ loss 7det]m9$ )\t reg>d to ?is   
p>agraph7 ( ! taxpay] = any taxable ye> 
f :i* an advance c>ryback adju/m5t is   
made "u ?is subsection %all be r$uc$ 7b 
n bel[ z]o7 by ! am\nt ( e/imat$ net    
op]at+ loss tak5 into acc\nt 9 det]m9+  
an advance c>ryback adju/m5t ( ! taxpay]
 "u ?is subsection4  7#f7 ,recapture ,! 
taxpay]'s tax impos$ by *apt] #a = su*  
taxable ye> %all be increas$ by ! excess
 7if any7 (-- 7,a7 ! r$uction 9 tax =   
all prior taxable ye>s by reason ( an   
advance c>ryback adju/m5t "u ?is        
subsection1 ov]  7,b7 ! r$uction 9 tax =
 all prior taxable ye>s by reason ( a   

net op]at+ loss f9ally aris+ 9 ! taxable
 ye> to :i* ! application "u ?is        
subsection relates4  7#g7 ,d5ial ( d\ble
 b5efit ,! ,secret>y %all provide su*   
rules or guidance z is necess>y =       
coord9ation ( ! application ( ?is       
section ) ! provision ( section #fafd ( 
! ,int]nal ,rev5ue ,code ( #aihf4  7#h7 
,ref]5ces to ,secret>y ,any ref]5ce to !
 ,secret>y ( ! ,treasury 9 ?is          
subsection %all be treat$ z includ+ a   
ref]5ce to ! ,secret>y's delegate4  7e7 
,effective date ,! am5dm5ts made by ?is 
section %all take effect z if includ$ 9 
! enactm5t ( section #bcjc7;b7 ( !      
,coronavirus ,aid1 ,relief1 & ,economic 
,security ,act4