[Congressional Record Volume 149, Number 115 (Wednesday, July 30, 2003)]
[Senate]
[Page S10269]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BUNNING (for himself and Mr. Conrad):
  S. 1494. A bill to amend the Internal Revenue Code of 1986 to extend 
the special 5-year carryback of certain net operating losses to losses 
for 2003, 2004, and 2005; to the Committee on Finance.
  Mr. BUNNING. Mr. President, today, Senator Conrad and I are 
introducing legislation that would greatly benefit out domestic 
economy. Our legislation would increase the cash flow of many 
struggling American companies, thus helping them hire and retain 
workers and fund capital investments.
  The legislation involves the ``net operating loss'' (``NOL'') rules 
under the Internal Revenue Code. The NOL carryback and carryover rules 
are designed to allow taxpayers to smooth out swings in business income 
that result from business cycle fluctuations and unexpected financial 
losses.
  Last year's economic stimulus bill, the ``Job Creation and Worker 
Assistance Act of 2002,'' allowed NOLs arising in 2001 and 2002 to be 
carried back five years, rather than two years, as otherwise would be 
provided under the tax law. The 2002 Act also removed a limitation that 
the corporate alternative minimum tax (``AMT'') unfairly places on 
these carrybacks. The 2002 Act thus gave taxpayers in many sectors of 
the economy an enhanced ability to increase their cash flow through 
refunds of income taxes paid in prior years.
  Unfortunately, the same uncertain economic conditions that led to the 
enactment of last year's stimulus bill have continued. Many taxpayers 
are continuing to incur unexpected financial losses in 2003.
  The legislation that we are introducing today would simply extend the 
2002 Act's NOL carryback rules to cover NOLs arising in 2003 and to 
NOLs that may arise in 2004 and 2005.
  I urge my colleagues to support this important legislation, which 
would give much needed relief to U.S. employers and would provide an 
additional jump start to our economy.
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