[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2278 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2278

 To permit certain air carriers to immediately utilize accumulated net 
                           operating losses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 1993

 Mr. Oberstar (for himself, Mr. Ramstad, Mr. Carr, Mr. Levin, and Mr. 
Kyl) introduced the following bill; which was referred to the Committee 
                           on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To permit certain air carriers to immediately utilize accumulated net 
                           operating losses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SPECIAL PROVISION RELATING TO AIR CARRIERS WITH NET 
              OPERATING LOSSES.

    (a) General Rule.--Notwithstanding any limitation on the use of net 
operating loss carryforwards under section 382 of the Internal Revenue 
Code of 1986, if a qualified air carrier makes an election under this 
section for its 1st taxable year beginning after December 31, 1991, 
with respect to any portion of its existing NOL carryforwards, the 
amount determined under subsection (b) shall be treated as a payment 
against the tax imposed by chapter 1 of the Internal Revenue Code of 
1986 for such 1st taxable year made by such carrier on the later of--
            (1) the date its return under such chapter 1 for such 1st 
        taxable year is filed, or
            (2) the date such election is made.
    (b) Amount.--For purposes of subsection (a), the amount determined 
under this subsection shall be the lesser of--
            (1) 34 percent of the portion of the qualified air 
        carrier's existing NOL carryforwards to which the election 
        under subsection (a) applies, or
            (2) the aggregate transportation excise taxes deposited by 
        such carrier during calendar year 1992.
    (c) Date for Payment by Secretary.--Any overpayment of tax by 
reason of this section shall be paid by the Secretary of the Treasury 
not later than the 30th day after the date the payment referred to in 
subsection (a) is treated as made.
    (d) Carrier Making Election May Not Use Same Amounts Under Section 
172.--
            (1) In general.--Except as provided in paragraph (2), in 
        the case of a qualified air carrier which makes an election 
        under subsection (a), the portion of such carrier's existing 
        NOL carryforwards to which such election applies shall not be 
        taken into account under section 172 of the Internal Revenue 
        Code of 1986 for any taxable year beginning after December 31, 
        1992. Such election shall be treated as made with respect to 
        net operating loss carryovers in the order in which they arose, 
        beginning with the earliest loss year.
            (2) Minimum tax not affected.--Section 53, and part VI of 
        subchapter A of chapter 1, of the Internal Revenue Code of 1986 
        shall be applied as if this section had never been enacted.
    (e) Definitions.--For purposes of this section--
            (1) Qualified air carrier.--The term ``qualified air 
        carrier'' means an air carrier that is certificated under 
        section 401 of the Federal Aviation Act, that is operating in 
        the commercial carriage of passengers or freight for hire as of 
        January 1, 1993, and that is required by law to collect and 
        deposit transportation excise taxes.
            (2) Existing nol carryforwards.--The term ``existing NOL 
        carryforwards'' means the aggregate net operating loss 
        carryovers under section 172 of the Internal Revenue Code of 
        1986--
                    (A) available for the 1st taxable year of the 
                qualified air carrier beginning after December 31, 
                1992, and
                    (B) from taxable years preceding such 1st taxable 
                year.
        If the qualified air carrier is a member of an affiliated group 
        (within the meaning of section 1502 of the Internal Revenue 
        Code of 1986) filing consolidated tax returns, the existing NOL 
        carryovers shall be the consolidated net operating loss 
        carryovers under such section 172 of such affiliated group 
        determined as of the beginning of such 1st taxable year.
            (3) Transportation excise taxes.--The term ``transportation 
        excise taxes'' means the aggregate of--
                    (A) the taxes imposed by section 4261 of the 
                Internal Revenue Code of 1986, and
                    (B) the taxes imposed by section 4271 of the 
                Internal Revenue Code of 1986.

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