[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9383 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 9383
To amend the Internal Revenue Code of 1986 to provide special rules
with respect to the net operating losses of certain financial
institutions.
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IN THE HOUSE OF REPRESENTATIVES
June 22, 2026
Mr. Carey (for himself, Ms. Moore of Wisconsin, Ms. Tenney, Ms. Sewell,
Mr. Moran, Ms. DelBene, Mr. Yakym, Mr. Beyer, Mr. Miller of Ohio, and
Mr. Horsford) introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to provide special rules
with respect to the net operating losses of certain financial
institutions.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business and Consumer Credit
Act of 2026''.
SEC. 2. NET OPERATING LOSSES OF CERTAIN FINANCIAL INSTITUTIONS.
(a) In General.--Section 172(b)(1) of the Internal Revenue Code of
1986 is amended by redesignating subparagraph (D) as subparagraph (E)
and inserting after subparagraph (C) the following new subparagraph:
``(D) Certain financial institutions.--
``(i) 2027.--In the case of any specified
financial institution which elects the
application of this clause for any taxable year
beginning after December 31, 2026, and before
January 1, 2028, the net operating loss for
such taxable year shall be a net operating loss
carryover to each of the 20 taxable years
following the taxable year of the loss.
``(ii) 2028.--In the case of any specified
financial institution which elects the
application of this clause for any taxable year
beginning after December 31, 2027, and before
January 1, 2029, the net operating loss for
such taxable year--
``(I) shall be a net operating loss
carryback to the taxable year preceding
the taxable year of the loss, and
``(II) shall be a net operating
loss carryover to each of the 20
taxable years following the taxable
year of the loss.
``(iii) 2029 and thereafter.--In the case
of any specified financial institution which
elects the application of this clause for any
taxable years beginning after December 31,
2028, the net operating loss for such taxable
year--
``(I) shall be a net operating loss
carryback to each of the 2 taxable
years preceding the taxable year of the
loss, and
``(II) shall be a net operating
loss carryover to each of the 20
taxable years following the taxable
year of the loss.
``(iv) Specified financial institution.--
For purposes of this subparagraph, the term
`specified financial institution' means--
``(I) any bank (as defined in
section 581) that is not a member of an
affiliated group (as defined in section
1504(a)(1)),
``(II) any member of an affiliated
group (as so defined in section
1504(a)(1)) that includes one or more
banks (as defined in section 581) that
are not described in section 2(c)(2)(H)
of the Bank Holding Company Act of 1956
(12 U.S.C. 1841(c)(2)(H)), and
``(III) any bank within the meaning
of section 585(a)(2)(B).
``(v) Elections.--Any election under this
subparagraph--
``(I) shall be made in such manner
as the Secretary may prescribe,
``(II) shall be made not later than
the due date of the taxpayer's return
of tax for the taxable year of the net
operating loss to which such election
relates, and
``(III) once made for any taxable
year, shall be irrevocable for such
taxable year.''.
(b) Conforming Amendments.--
(1) Section 172(b)(1)(A)(i) of such Code is amended by
striking ``and (D)'' and inserting ``(D)(ii)(I), (D)(iii)(I),
and (E)''.
(2) Section 172(b)(1)(A)(ii) of such Code is amended by
inserting ``(D)(i), (D)(ii)(II), and (D)(iii)(II),'' after
``(C)(ii),''.
(c) Effective Date.--The amendments made by this section shall
apply to net operating losses arising in taxable years beginning after
December 31, 2026.
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