[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 561 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 561

To amend the Internal Revenue Code of 1986 to allow a 5-year carryback 
        of certain net operating losses, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 15, 2009

     Ms. Markey of Colorado (for herself, Ms. Bean, and Mr. Hodes) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow a 5-year carryback 
        of certain net operating losses, and for other purposes.

    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) Five-Year Carryback of Net Operating Losses.--Subparagraph (H) 
of section 172(b)(1) of the Internal Revenue Code of 1986 is amended to 
read as follows:
                    ``(H) Temporary 5-year carryback of losses.--In the 
                case of a net operating loss for any taxable year 
                ending during 2001, 2002, 2008, or 2009, subparagraph 
                (A)(i) shall be applied by substituting `5' for `2' and 
                subparagraph (F) shall not apply.''.
    (b) Temporary Suspension of 90 Percent Limit on Certain NOL 
Carrybacks and Carryovers.--
            (1) In general.--Subsection (d) of section 56 of such Code 
        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 ending during 2008 and 2009, and
                    ``(B) carryovers of net operating losses to taxable 
                years ending during 2008 or 2009.''.
            (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) 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 ending 
                in 2008 or 2009.
                    (B) Election.--In the case of an taxpayer with a 
                net operating loss for a taxable year ending during 
                2008--
                            (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, 2009, 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, 2009.
            (2) Subsection (b).--The amendments made by subsection (b) 
        shall apply to taxable years ending after December 31, 1997.
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