[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2650 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2650

 To provide for a 5-year carryback of certain net operating losses and 
to suspend the 90 percent alternative minimum tax limit on certain net 
                           operating losses.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 14, 2008

  Mr. Specter (for himself, Mrs. Dole, Mr. Ensign, Mr. Martinez, Mr. 
  Cornyn, Ms. Stabenow, and Mrs. Hutchison) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To provide for a 5-year carryback of certain net operating losses and 
to suspend the 90 percent alternative minimum tax limit on certain net 
                           operating losses.

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

SECTION 1. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED FOR 5 
              YEARS; TEMPORARY SUSPENSION OF 90 PERCENT AMT LIMIT.

    (a) In General.--Subparagraph (H) of section 172(b)(1) of the 
Internal Revenue Code of 1986 is amended to read as follows:
                    ``(H) 5-year carryback of certain losses.--
                            ``(i) Taxable years ending during 2001 and 
                        2002.--In the case of a net operating loss for 
                        any taxable year ending during 2001 or 2002, 
                        subparagraph (A)(i) shall be applied by 
                        substituting `5' for `2' and subparagraph (F) 
                        shall not apply.
                            ``(ii) Taxable years beginning or ending 
                        during 2006, 2007, and 2008.--In the case of a 
                        net operating loss for any taxable year 
                        beginning or ending during 2006, 2007, or 
                        2008--
                                    ``(I) subparagraph (A)(i) shall be 
                                applied by substituting `5' for `2',
                                    ``(II) subparagraph (E)(ii) shall 
                                be applied by substituting `4' for `2', 
                                and
                                    ``(III) subparagraph (F) shall not 
                                apply.''.
    (b) Temporary Suspension of 90 Percent Limit on Certain NOL 
Carrybacks and Carryovers.--
            (1) In general.--Section 56(d) of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(3) Additional adjustments.--For purposes of paragraph 
        (1)(A), the amount described in clause (I) of paragraph 
        (1)(A)(ii) shall be increased by the amount of the net 
        operating loss deduction allowable for the taxable year under 
        section 172 attributable to the sum of--
                    ``(A) carrybacks of net operating losses from 
                taxable years beginning or ending during 2006, 2007, 
                and 2008, and
                    ``(B) carryovers of net operating losses to taxable 
                years beginning or ending during 2006, 2007, or 
                2008.''.
            (2) Conforming amendment.--Subclause (I) of section 
        56(d)(1)(A)(i) of such Code is amended by inserting ``amount of 
        such'' before ``deduction described in clause (ii)(I)''.
    (c) Anti-Abuse Rules.--The Secretary of the 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.
    (d) Effective Dates.--
            (1) Subsection (a).--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by subsection (a) shall apply 
                to net operating losses arising in taxable years 
                beginning or ending in 2006, 2007, or 2008.
                    (B) Election.--In the case of a net operating loss 
                for a taxable year beginning or ending during 2006 or 
                2007--
                            (i) any election made under section 
                        172(b)(3) of the Internal Revenue Code of 1986 
                        may (notwithstanding such section) be revoked 
                        before November 1, 2008, and
                            (ii) any election made under section 172(j) 
                        of such Code shall (notwithstanding such 
                        section) be treated as timely made if made 
                        before November 1, 2008.
            (2) Subsection (b).--The amendments made by subsection (b) 
        shall apply to taxable years ending after December 31, 1995.
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