Amendments
2020—Subsec. (a). Pub. L. 116–136, § 2303(a)(1), substituted “an amount equal to—” and pars. (1) and (2) for “an amount equal to the lesser of—
“(1) the aggregate of the net operating loss carryovers to such year, plus the net operating loss carrybacks to such year, or
“(2) 80 percent of taxable income computed without regard to the deduction allowable under this section.”
Subsec. (b)(1)(A). Pub. L. 116–136, § 2303(c)(2), amended subpar. (A) generally. Prior to amendment, text read as follows: “Except as otherwise provided in this paragraph, a net operating loss for any taxable year—
“(i) except as otherwise provided in this paragraph, shall not be a net operating loss carryback to any taxable year preceding the taxable year of such loss, and
“(ii) shall be a net operating loss carryover to each taxable year following the taxable year of the loss.”
Subsec. (b)(1)(A)(i). Pub. L. 116–136, § 2303(b)(2), substituted “, (C)(i), and (D)” for “and (C)(i)”.
Subsec. (b)(1)(D). Pub. L. 116–136, § 2303(b)(1), added subpar. (D).
Subsec. (b)(2)(C). Pub. L. 116–136, § 2303(a)(2)(A), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “not exceed the amount determined under subsection (a)(2) for such prior taxable year.”
Subsec. (d)(6)(C). Pub. L. 116–136, § 2303(a)(2)(B), substituted “subsection (a)(2)(B)(ii)(I)” for “subsection (a)(2)”.
2018—Subsec. (d)(5). Pub. L. 115–141, § 401(a)(53), substituted “sections 243” for “section 243”.
Subsec. (d)(8). Pub. L. 115–141, § 101(a)(2)(B), substituted “Any deduction” for “The deduction”.
2017—Subsec. (a). Pub. L. 115–97, § 13302(a)(1), amended subsec. (a) generally. Prior to amendment, text read as follows: “There shall be allowed as a deduction for the taxable year an amount equal to the aggregate of (1) the net operating loss carryovers to such year, plus (2) the net operating loss carrybacks to such year. For purposes of this subtitle, the term ‘net operating loss deduction’ means the deduction allowed by this subsection.”
Subsec. (b)(1)(A)(i). Pub. L. 115–97, § 13302(b)(1)(A), substituted “except as otherwise provided in this paragraph, shall not be a net operating loss carryback to any taxable year” for “shall be a net operating loss carryback to each of the 2 taxable years”.
Subsec. (b)(1)(A)(ii). Pub. L. 115–97, § 13302(b)(1)(B), substituted “to each taxable year” for “to each of the 20 taxable years”.
Subsec. (b)(1)(B). Pub. L. 115–97, § 13302(b)(2), (c)(1), added subpar. (B) and struck out former subpar. (B). Prior to amendment, text read as follows:
“(i) In general.—A net operating loss for a REIT year shall not be a net operating loss carryback to any taxable year preceding the taxable year of such loss.
“(ii) Special rule.—In the case of any net operating loss for a taxable year which is not a REIT year, such loss shall not be carried back to any taxable year which is a REIT year.
“(iii) REIT year.—For purposes of this subparagraph, the term ‘REIT year’ means any taxable year for which the provisions of part II of subchapter M (relating to real estate investment trusts) apply to the taxpayer.”
Subsec. (b)(1)(C). Pub. L. 115–97, § 13302(b)(2), (d)(1), added subpar. (C) and struck out former subpar. (C). Prior to amendment, text read as follows: “In the case of a taxpayer which has a specified liability loss (as defined in subsection (f)) for a taxable year, such specified liability loss shall be a net operating loss carryback to each of the 10 taxable years preceding the taxable year of such loss.”
Subsec. (b)(1)(D) to (F). Pub. L. 115–97, § 13302(b)(2), struck out subpars. (D) to (F) which related to corporate equity reduction interest loss, retention of 3-year carryback in certain cases, and farming losses, respectively.
Subsec. (b)(2). Pub. L. 115–97, § 13302(a)(2), substituted “shall—” and subpars. (A) to (C) for “shall be computed—
“(A) with the modifications specified in subsection (d) other than paragraphs (1), (4), and (5) thereof, and
“(B) by determining the amount of the net operating loss deduction without regard to the net operating loss for the loss year or for any taxable year thereafter,
and the taxable income so computed shall not be considered to be less than zero.”
Subsec. (d)(6)(C). Pub. L. 115–97, § 13302(a)(3), added subpar. (C).
Subsec. (d)(7). Pub. L. 115–97, § 13305(b)(3), struck out par. (7). Text read as follows: “The deduction under section 199 shall not be allowed.”
Subsec. (d)(8). Pub. L. 115–97, § 11011(d)(1), added par. (8).
Subsec. (d)(9). Pub. L. 115–97, § 14202(b)(1), added par. (9).
Subsecs. (f), (g). Pub. L. 115–97, § 13302(d)(2), added subsec. (f) and redesignated former subsec. (f) as (g).
Pub. L. 115–97, § 13302(c)(2)(A), redesignated subsec. (i) as (f) and struck out former subsecs. (f) and (g) which related to rules relating to specified liability loss and corporate equity reduction interest losses, respectively.
Subsecs. (h), (i). Pub. L. 115–97, § 13302(c)(2)(A), struck out subsec. (h) relating to farming loss rules and redesignated subsec. (i) as (f).
2014—Subsec. (b)(1)(D). Pub. L. 113–295, § 221(a)(30)(A)(i), redesignated subpar. (E) as (D) and struck out former subpar. (D). Prior to amendment, text of subpar. (D) read as follows: “In the case of any bank (as defined in section 585(a)(2)), the portion of the net operating loss for any taxable year beginning after December 31, 1986, and before January 1, 1994, which is attributable to the deduction allowed under section 166(a) shall be a net operating loss carryback to each of the 10 taxable years preceding the taxable year of the loss and a net operating loss carryover to each of the 5 taxable years following the taxable year of such loss.”
Subsec. (b)(1)(D)(i)(II). Pub. L. 113–295, § 221(a)(30)(B)(i), struck out “ending after August 2, 1989” after “loss limitation year”.
Subsec. (b)(1)(D)(ii). Pub. L. 113–295, § 221(a)(30)(B)(ii), substituted “subsection (g)” for “subsection (h)”.
Subsec. (b)(1)(E). Pub. L. 113–295, § 221(a)(30)(A)(i), redesignated subpar. (F) as (E). Former subpar. (E) redesignated (D).
Subsec. (b)(1)(E)(ii). Pub. L. 113–295, § 221(a)(30)(B)(iv), substituted “subsection (h)).” for “subsection (i)) or qualified disaster loss (as defined in subsection (j)).” in concluding provisions.
Subsec. (b)(1)(E)(ii)(II). Pub. L. 113–295, § 221(a)(30)(B)(iii), substituted “section 165(i)(5)” for “section 165(h)(3)(C)(i)”.
Subsec. (b)(1)(F). Pub. L. 113–295, § 221(a)(30)(B)(v), substituted “subsection (h)” for “subsection (i)”.
Pub. L. 113–295, § 221(a)(30)(A)(i), redesignated subpar. (G) as (F). Former subpar. (F) redesignated (E).
Subsec. (b)(1)(F)(ii)(II). Pub. L. 113–295, § 211(c)(1)(B), substituted “section 165(h)(3)(C)(i)” for “subsection (h)(3)(C)(i)”.
Subsec. (b)(1)(G) to (J). Pub. L. 113–295, § 221(a)(30)(A)(i), redesignated subpar. (G) as (F) and struck out subpars. (H) to (J) which related to carryback for 2008 or 2009 net operating losses, transmission property and pollution control investment, and certain losses attributable to federally declared disasters, respectively.
Subsec. (d)(5). Pub. L. 113–295, § 221(a)(41)(B), amended par. (5) generally. Prior to amendment, text read as follows: “The deductions allowed by sections 243 (relating to dividends received by corporations), 244 (relating to dividends received on certain preferred stock of public utilities), and 245 (relating to dividends received from certain foreign corporations) shall be computed without regard to section 246(b) (relating to limitation on aggregate amount of deductions); and the deduction allowed by section 247 (relating to dividends paid on certain preferred stock of public utilities) shall be computed without regard to subsection (a)(1)(B) of such section.”
Subsec. (g). Pub. L. 113–295, § 221(a)(30)(A)(ii), redesignated subsec. (h) as (g) and struck out former subsec. (g) which related to rules relating to bad debt losses of commercial banks.
Subsec. (g)(2)(F). Pub. L. 113–295, § 221(a)(30)(B)(vi), struck out subpar. (F). Text read as follows: “If any of the 3 taxable years described in subparagraph (C)(ii) end on or before August 2, 1989, the taxpayer may substitute for the amount determined under such subparagraph an amount equal to the interest paid or accrued (determined on an annualized basis) during the taxpayer’s taxable year which includes August 3, 1989, on indebtedness of the taxpayer outstanding on August 2, 1989.”
Subsec. (g)(4)(B)(ii), (C). Pub. L. 113–295, § 221(a)(30)(B)(vii), substituted “subsection (b)(1)(D)” for “subsection (b)(1)(E)”.
Subsec. (h). Pub. L. 113–295, § 221(a)(30)(A)(ii), redesignated subsec. (i) as (h). Former subsec. (h) redesignated (g).
Subsec. (h)(1). Pub. L. 113–295, § 221(a)(30)(B)(viii), struck out concluding provisions which read as follows: “Such term shall not include any qualified disaster loss (as defined in subsection (j)).”
Subsec. (h)(3). Pub. L. 113–295, § 221(a)(30)(B)(ix), substituted “subsection (b)(1)(F)” for “subsection (b)(1)(G)” in two places.
Subsecs. (i) to (k). Pub. L. 113–295, § 221(a)(30)(A)(ii), redesignated subsecs. (i) and (k) as (h) and (i), respectively, and struck out subsec. (j) which related to rules relating to qualified disaster losses.
2009—Subsec. (b)(1)(H). Pub. L. 111–92 amended subpar. (H) generally. Prior to amendment, subpar. (H) provided for carryback for 2008 net operating losses of small businesses.
Pub. L. 111–5, § 1211(a), amended subpar. (H) generally. Prior to amendment, subpar. (H) read as follows: “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.”
Subsecs. (k), (l). Pub. L. 111–5, § 1211(b), redesignated subsec. (l) as (k) and struck out former subsec. (k). Prior to amendment, text read as follows: “Any taxpayer entitled to a 5-year carryback under subsection (b)(1)(H) from any loss year may elect to have the carryback period with respect to such loss year determined without regard to subsection (b)(1)(H). Such election shall be made in such manner as may be prescribed by the Secretary and shall be made by the due date (including extensions of time) for filing the taxpayer’s return for the taxable year of the net operating loss. Such election, once made for any taxable year, shall be irrevocable for such taxable year.”
2008—Subsec. (b)(1)(F)(ii). Pub. L. 110–343, § 708(d)(1), inserted “or qualified disaster loss (as defined in subsection (j))” before period at end of concluding provisions.
Subsec. (b)(1)(F)(ii)(II). Pub. L. 110–343, § 706(a)(2)(D)(v), substituted “federally declared disasters (as defined by subsection (h)(3)(C)(i))” for “Presidentially declared disasters (as defined in section 1033(h)(3))”.
Subsec. (b)(1)(F)(ii)(III). Pub. L. 110–343, § 706(a)(2)(D)(vi), substituted “federally declared disasters” for “Presidentially declared disasters”.
Subsec. (b)(1)(J). Pub. L. 110–343, § 708(a), added subpar. (J).
Subsec. (i)(1). Pub. L. 110–343, § 708(d)(2), inserted concluding provisions.
Subsecs. (j) to (l). Pub. L. 110–343, § 708(b), added subsec. (j) and redesignated former subsecs. (j) and (k) as (k) and (l), respectively.
2005—Subsec. (b)(1)(I). Pub. L. 109–58 added subpar. (I).
Subsec. (b)(1)(I)(i). Pub. L. 109–135, § 402(f)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “At the election of the taxpayer in any taxable year ending after December 31, 2005, and before January 1, 2009, in the case of a net operating loss in a taxable year ending after December 31, 2002, and before January 1, 2006, there shall be a net operating loss carryback to each of the 5 years preceding the taxable year of such loss to the extent that such loss does not exceed 20 percent of the sum of electric transmission property capital expenditures and pollution control facility capital expenditures of the taxpayer for the taxable year preceding the taxable year in which such election is made.”
Subsec. (b)(1)(I)(ii)(I). Pub. L. 109–135, § 402(f)(2), substituted “for a taxable year” for “in a taxable year”.
Subsec. (b)(1)(I)(iv) to (vi). Pub. L. 109–135, § 402(f)(3), added cl. (iv), redesignated cl. (vi) as (v), and struck out former cls. (iv) and (v) which read as follows:
“(iv) Application for adjustment.—In the case of any portion of a net operating loss to which an election under clause (i) applies, an application under section 6411(a) with respect to such loss shall not fail to be treated as timely filed if filed within 24 months after the due date specified under such section.
“(v) Special rules relating to refund.—For purposes of a net operating loss to which an election under clause (i) applies, references in sections 6501(h), 6511(d)(2)(A), and 6611(f)(1) to the taxable year in which such net operating loss arises or result in a net loss carryback shall be treated as references to the taxable year in which such election occurs.”
Subsec. (d)(7). Pub. L. 109–135, § 403(a)(17), added par. (7).
2004—Subsec. (b)(1)(H). Pub. L. 108–311 struck out “a taxpayer which has” after “In the case of”.
2002—Subsec. (b)(1)(F)(i). Pub. L. 107–147, § 417(8), substituted “3 taxable years” for “3 years” and “2 taxable years” for ‘2 years”.
Subsec. (b)(1)(H). Pub. L. 107–147, § 102(a), added subpar. (H).
Subsecs. (j), (k). Pub. L. 107–147, § 102(b), added subsec. (j) and redesignated former subsec. (j) as (k).
1998—Subsec. (b)(1)(F)(ii). Pub. L. 105–277, § 2013(c), inserted concluding provisions.
Subsec. (b)(1)(F)(iv). Pub. L. 105–277, § 4003(h), added cl. (iv).
Subsec. (b)(1)(G). Pub. L. 105–277, § 2013(a), added subpar. (G).
Subsec. (d)(4)(C). Pub. L. 105–277, § 4004(a), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “any deduction allowable under section 165(c)(3) (relating to casualty losses) shall not be taken into account; and”.
Subsec. (f)(1)(B). Pub. L. 105–277, § 3004(a), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Any amount (not described in subparagraph (A)) allowable as a deduction under this chapter with respect to a liability which arises under a Federal or State law or out of any tort of the taxpayer if—
“(i) in the case of a liability arising out of a Federal or State law, the act (or failure to act) giving rise to such liability occurs at least 3 years before the beginning of the taxable year, or
“(ii) in the case of a liability arising out of a tort, such liability arises out of a series of actions (or failures to act) over an extended period of time a substantial portion of which occurs at least 3 years before the beginning of the taxable year.
A liability shall not be taken into account under subparagraph (B) unless the taxpayer used an accrual method of accounting throughout the period or periods during which the acts or failures to act giving rise to such liability occurred.”
Subsecs. (i), (j). Pub. L. 105–277, § 2013(b), added subsec. (i) and redesignated former subsec. (i) as (j).
1997—Subsec. (b)(1)(A)(i). Pub. L. 105–34, § 1082(a)(1), substituted “2” for “3”.
Subsec. (b)(1)(A)(ii). Pub. L. 105–34, § 1082(a)(2), substituted “20” for “15”.
Subsec. (b)(1)(F). Pub. L. 105–34, § 1082(b), added subpar. (F).
1996—Subsec. (b)(1)(E)(ii). Pub. L. 104–188, § 1702(h)(2), substituted “subsection (h)” for “subsection (m)”.
Subsec. (h)(3)(B)(i). Pub. L. 104–188, § 1704(t)(5), substituted “corporation.” for “corporation,” at end.
Subsec. (h)(4)(B). Pub. L. 104–188, § 1704(t)(30), substituted “For purposes of subsection (b)(2)—” for “For purposes of subsection (b)(2)” in introductory provisions.
Subsec. (h)(4)(C). Pub. L. 104–188, § 1702(h)(16), substituted “(b)(1)(E)” for “(b)(1)(M)”.
1993—Subsec. (d)(2). Pub. L. 103–66, § 13113(d)(1)(A), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “In the case of a taxpayer other than a corporation, the amount deductible on account of losses from sales or exchanges of capital assets shall not exceed the amount includible on account of gains from sales or exchanges of capital assets.”
Subsec. (d)(4)(B). Pub. L. 103–66, § 13113(d)(1)(B), which directed the insertion of “, (2)(B),” after “paragraph (1)”, was executed by making the insertion after “paragraphs (1)” to reflect the probable intent of Congress.
1990—Subsec. (b). Pub. L. 101–508, § 11811(a), amended subsec. (b) generally, substituting present provisions for provisions delineating years to which loss may be carried, relating to amount of carrybacks and carryovers, and providing for special rules for foreign expropriation losses.
Subsec. (b)(1)(M)(iii). Pub. L. 101–508, § 11701(d), struck out “a C corporation” after “means” in introductory provisions, substituted “a C corporation which acquires” for “which acquires” in subcl. (I), “a C corporation” for “a corporation” in subcl. (II), and “any C corporation which is a successor” for “any successor corporation” in subcl. (III).
Subsec. (f). Pub. L. 101–508, § 11811(b)(1), (2)(A), redesignated subsec. (j) as (f), substituted heading for one which read: “Rules relating to product liability losses”, and amended text generally, substituting present provisions for provisions defining terms “product liability loss” and “product liability”, and providing for an election with respect to carrybacks of such losses.
Subsec. (g). Pub. L. 101–508, § 11811(b)(1), redesignated subsec. (l) as (g) and struck out former subsec. (g) which related to carryover of net operating losses for certain regulated transportation corporations.
Subsec. (g)(2). Pub. L. 101–508, § 11811(b)(3), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “In applying paragraph (2) of subsection (b), the portion of the net operating loss for any taxable year which is attributable to the deduction allowed under section 166(a) shall be treated in a manner similar to the manner in which a foreign expropriation loss is treated.”
Subsec. (h). Pub. L. 101–508, § 11811(b)(1), redesignated subsec. (m) as (h) and struck out former subsec. (h) which defined “foreign expropriation loss”.
Subsec. (h)(3)(B)(ii). Pub. L. 101–508, § 11324(a), in par. (3)(B)(ii), formerly subsec. (m)(3)(B)(ii), substituted heading for one which read: “Exceptions” and amended text generally. Prior to amendment, text read as follows: “The term ‘major stock acquisition’ shall not include—
“(I) a qualified stock purchase (within the meaning of section 338) to which an election under section 338 applies, or
“(II) except as provided in regulations, an acquisition in which a corporation acquires stock of another corporation which, immediately before the acquisition, was a member of an affiliated group (within the meaning of section 1504(a)) other than the common parent of such group.”
Subsec. (h)(4)(B). Pub. L. 101–508, § 11811(b)(4), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “In applying paragraph (2) of subsection (b), the corporate equity reduction interest loss shall be treated in a manner similar to the manner in which a foreign expropriation loss is treated.”
Pub. L. 101–508, § 11704(a)(2), substituted “subsection (b)(2)” for “subsection (B)(2)” in heading.
Subsec. (i). Pub. L. 101–508, § 11811(b)(1), redesignated subsec. (n) as (i) and struck out former subsec. (i) which provided for rules relating to mortgage disposition losses of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.
Subsec. (j). Pub. L. 101–508, § 11811(b)(1), redesignated subsec. (j) as (f).
Subsec. (k). Pub. L. 101–508, § 11811(b)(1), struck out subsec. (k) which related to definitions and special rules relating to deferred statutory or tort liability losses.
Subsecs. (l) to (n). Pub. L. 101–508, § 11811(b)(1), redesignated subsecs. (l) to (n) as (g) to (i), respectively.
1989—Subsec. (b)(1)(M). Pub. L. 101–239, § 7211(a), added subpar. (M).
Subsecs. (m), (n). Pub. L. 101–239, § 7211(b), added subsec. (m) and redesignated former subsec. (m) as (n).
1988—Subsec. (b)(1)(A). Pub. L. 100–647, § 1009(c)(2), substituted “Except as otherwise provided in this paragraph, a net operating loss” for “Except as provided in subparagraphs (D), (E), (F), (G), (H), (I), (J), (K), (L), and (M), a net operating loss”.
Subsec. (b)(1)(B). Pub. L. 100–647, § 1009(c)(3), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Except as provided in subparagraphs (C), (D), and (E), a net operating loss for any taxable year ending after December 31, 1955, shall be a net operating loss carryover to each of the 5 taxable years following the taxable year of such loss. Except as provided in subparagraphs (C), (D), (E), (F), (G), (H), (J), (L), and (M), a net operating loss for any taxable year ending after December 31, 1975, shall be a net operating loss carryover to each of the 15 taxable years following the taxable year of such loss.”
Subsec. (b)(1)(K) to (M). Pub. L. 100–647, § 1009(c)(1), redesignated subpars. (L) and (M) as (K) and (L), respectively.
Subsec. (d)(4)(B). Pub. L. 100–647, § 1003(a)(1), substituted “paragraphs (1) and (3)” for “paragraphs (1), (2)(B), and (3)”.
1986—Subsec. (b)(1)(A), (B). Pub. L. 99–514, § 903(b)(2)(A), (B), inserted reference to subpars. (L) and (M).
Subsec. (b)(1)(F). Pub. L. 99–514, § 903(a)(1), inserted “and before January 1, 1987,”.
Pub. L. 99–514, § 901(d)(4)(B), substituted “referred to in section 582(c)(5)” for “to which section 585, 586, or 593 applies”.
Subsec. (b)(1)(G). Pub. L. 99–514, § 903(a)(2), inserted “and before January 1, 1987,”.
Subsec. (b)(1)(H). Pub. L. 99–514, § 903(a)(3)(A), struck out “after December 31, 1981,” and inserted “after December 31, 1981, and before January 1, 1987,”.
Pub. L. 99–514, § 903(a)(3)(B), which directed that subpar. (H) be amended by striking out “after December 31, 1984,” and inserting “after December 31, 1984, and before January 1, 1987,”, was executed by striking out “after December 31, 1984” and inserting “after December 31, 1984, and before January 1, 1987”, to reflect the probable intent of Congress and the fact that no comma appeared after “1984” and was not necessary after “1987”.
Subsec. (b)(1)(J), (K). Pub. L. 99–514, § 1303(b)(1), redesignated subpar. (K) as (J) and struck out former subpar. (J) which read as follows: “In the case of an electing GSOC which has a net operating loss for any taxable year such loss shall not be a net operating loss carryback to any taxable year preceding the year of such loss, but shall be a net operating loss carryover to each of the 10 taxable years following the year of such loss.”
Subsec. (b)(1)(L), (M). Pub. L. 99–514, § 903(b)(1), added subpars. (L) and (M).
Subsec. (d)(2). Pub. L. 99–514, § 301(b)(3), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “In the case of a taxpayer other than a corporation—
“(A) the amount deductible on account of losses from sales or exchanges of capital assets shall not exceed the amount includible on account of gains from sales or exchanges of capital assets; and
“(B) the deduction for long-term capital gains provided by section 1202 shall not be allowed.”
Subsec. (d)(6). Pub. L. 99–514, § 1899A(6), added heading.
Subsec. (d)(7). Pub. L. 99–514, § 104(b)(4), struck out par. (7), zero bracket amount, which read as follows: “In the case of a taxpayer other than a corporation, the zero bracket amount shall be treated as a deduction allowed by this chapter. For purposes of subsection (c)—
“(A) the deduction provided by the preceding sentence shall be in lieu of any itemized deductions of the taxpayer, and
“(B) such sentence shall not apply to an individual who elects to itemize deductions.”
Subsec. (k)(2), (4). Pub. L. 99–514, § 1303(b)(2), substituted “subsection (b)(1)(J)” for “subsection (b)(1)(K)”.
Subsecs. (l), (m). Pub. L. 99–514, § 903(b)(2)(C), added subsec. (l) and redesignated former subsec. (l) as (m).
1984—Subsec. (b)(1)(A). Pub. L. 98–369, § 91(d)(3)(A), substituted “(J), and (K)” for “and (J)”.
Subsec. (b)(1)(H). Pub. L. 98–369, § 177(c)(1)(A), inserted “, or a net operating loss of the Federal Home Loan Mortgage Corporation for any taxable year beginning after December 31, 1984” in introductory provisions.
Subsec. (b)(1)(H)(i), (ii). Pub. L. 98–369, § 177(c)(1)(B), (C), struck out “FNMA” before “mortgage disposition loss”.
Subsec. (b)(1)(K). Pub. L. 98–369, § 91(d)(1), added subpar. (K).
Subsec. (b)(2)(A). Pub. L. 98–369, § 722(a)(4)(A), substituted “and (5)” for “and (6)”.
Subsec. (d)(4)(D). Pub. L. 98–369, § 491(d)(5), struck out “or section 405(c)” after “section 404”.
Subsec. (d)(6) to (8). Pub. L. 98–369, § 722(a)(4)(B), redesignated pars. (7) and (8) as (6) and (7), respectively.
Subsec. (h). Pub. L. 98–369, § 91(d)(3)(B), substituted “this section” for “subsection (b)” in introductory provisions.
Subsec. (i). Pub. L. 98–369, § 177(c)(2), substituted “Mortgage disposition loss of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation” for “FNMA mortgage disposition loss” in heading and struck out “FNMA” before “mortgage disposition loss” wherever appearing in text.
Subsec. (j). Pub. L. 98–369, § 91(d)(3)(B), substituted “this section” for “subsection (b)” in introductory provisions.
Subsecs. (k), (l). Pub. L. 98–369, § 91(d)(2), added subsec. (k) and redesignated former subsec. (k) as (l).
1982—Subsec. (b)(1)(A). Pub. L. 97–362, § 102(c)(1), substituted “(H), (I), and (J)” for “(H), and (I)”.
Subsec. (b)(1)(B). Pub. L. 97–362, § 102(c)(2), substituted “(H), and (J)” for “and (I)”.
Subsec. (b)(1)(H). Pub. L. 97–362, § 102(a), added subpar. (H). Former subpar. (H) redesignated (I).
Subsec. (b)(1)(I). Pub. L. 97–362, § 102(a), (c)(3), redesignated former subpar. (H) as (I) and substituted “subsection (j)” for “subsection (i)”. Former subpar. (I) redesignated (J).
Subsec. (b)(1)(J). Pub. L. 97–362, § 102(a), redesignated former subpar. (I) as (J).
Subsec. (f). Pub. L. 97–354 struck out subsec. (f) relating to net operating loss of electing small business corporation.
Subsec. (i). Pub. L. 97–362, § 102(b), added subsec. (i). Former subsec. (i) redesignated (j).
Subsec. (j). Pub. L. 97–362, § 102(b), (c)(4), redesignated former subsec. (i) as (j) and, in par. (3) of subsec. (j) as so redesignated, substituted “subsection (b)(1)(I)” for “subsection (b)(1)(H)” wherever appearing. Former subsec. (j) redesignated (k).
Subsec. (k). Pub. L. 97–362, § 102(b), redesignated former subsec. (j) as (k).
1981—Subsec. (b)(1)(B). Pub. L. 97–34, § 207(a)(1), substituted “15 taxable years” for “7 taxable years”.
Subsec. (b)(1)(C). Pub. L. 97–34, § 207(a)(2)(A), substituted “ending after December 31, 1955, and before January 1, 1976, shall” for “ending after December 31, 1955, shall” and struck out provision that, for any taxable year ending after Dec. 31, 1975, the preceding sentence was to be applied by substituting “9 taxable years” for “7 taxable years”.
Subsec. (b)(1)(E)(i)(II). Pub. L. 97–34, § 207(a)(2)(B)(i), substituted “15” for “8”.
Subsec. (b)(1)(E)(ii). Pub. L. 97–34, § 207(a)(2)(B)(ii), struck out designation subclause “(I)” for provisions prohibiting a loss carryback to any taxable year which is a REIT year and struck out provision formerly designated as subclause (II) directing that the number of taxable years to which a loss could be a net operating loss carryover under subparagraph (B) be increased (to a number not greater than 8) by the number of taxable years to which such loss could not be a net operating loss carryback by reason of subclause (I).
Subsec. (g)(3)(C). Pub. L. 97–34, § 207(a)(2)(C), struck out subpar. (C) which provided that, in the case of a net operating loss carryover from a loss year ending after Dec. 31, 1975, subpars. (A) and (B) were to be applied by substituting “8th taxable year” for “6th taxable year” and “9th taxable year” for “7th taxable year”.
1980—Subsec. (b)(1)(A). Pub. L. 96–222, § 106(a)(6), substituted “, (H), and (I)” for “and (H)”.
Pub. L. 96–222, § 103(a)(15), amended directory language of Pub. L. 95–600, § 371(a)(2), to correct an error, and did not involve any change in text. See 1978 Amendment note for subsec. (b)(1)(A) below.
Subsec. (b)(1)(B). Pub. L. 96–222, § 106(a)(7), substituted “(G), and (I)” for “and (G)”.
Subsec. (b)(1)(E). Pub. L. 96–595 generally revised subpar. (E) to permit a trust which was formerly a real estate investment trust an additional year of carryforward of net operating losses for each year it was denied a net operating loss carryback because of its status as a real estate investment trust, and removed the restriction that a net operating loss incurred before 1976 can be carried forward to the 6th, 7th, or 8th year only if it qualified as a real estate investment trust for all years from the loss year through the carryover year.
Subsec. (b)(1)(I). Pub. L. 96–222, § 106(a)(1), redesignated former subpar. (H), added by section 601(b) of Pub. L. 95–600 relating to an electing GSOC, as (I).
1978—Subsec. (b)(1)(A). Pub. L. 95–600, § 371(a)(2), as amended by Pub. L. 96–222, § 103(a)(15), substituted “(G), and (H)” for “and (G)”.
Pub. L. 95–600, § 703(p)(1)(A), struck out provisions relating to net operating loss carryback with respect to a taxable year ending on or after Dec. 31, 1962, for which a certification has been issued under section 317 of the Trade Expansion Act of 1962.
Subsec. (b)(1)(B). Pub. L. 95–600, § 701(d)(1), inserted reference to subpar. (G).
Subsec. (b)(1)(H). Pub. L. 95–600, § 371(a)(1), added subpar. (H) relating to product liability losses.
Pub. L. 95–600, § 601(b)(1), added subpar. (H) relating to an electing GSOC.
Subsec. (b)(3)(A). Pub. L. 95–600, § 703(p)(1)(B), redesignated subpar. (C) as (A). Former subpar. (A), which related to conditions for application of paragraph (1)(A)(ii), was struck out.
Subsec. (b)(3)(B). Pub. L. 95–600, § 703(p)(1)(B), (C), redesignated subpar. (D) as (B) and substituted “subparagraph (A)(iii)” for “subparagraph (C)(iii)”. Former subpar. (B), which related to the applicability of paragraph (1)(A)(ii) to partnerships and electing small business corporations, was struck out.
Subsec. (b)(3)(C). Pub. L. 95–600, § 703(p)(1)(B), redesignated subpar. (E) as (C). Former subpar. (C) redesignated (A).
Subsec. (b)(3)(D), (E). Pub. L. 95–600, § 703(p)(1)(B), redesignated subpars. (D) and (E) as (B) and (C), respectively.
Subsecs. (i), (j). Pub. L. 95–600, § 371(b), added subsec. (i) and redesignated former subsec. (i) as (j).
1977—Subsec. (d)(8). Pub. L. 95–30 added par. (8).
1976—Subsec. (b)(1)(B). Pub. L. 94–455, § 806(a), inserted “Except as provided in subparagraphs (C), (D), (E), and (F), a net operating loss for any taxable year ending after December 31, 1975, shall be a net operating loss carryover to each of the 7 taxable years following the taxable year of such loss” after “year of such loss”.
Subsec. (b)(1)(C). Pub. L. 94–455, §§ 806(b)(1), 1901(a)(29)(C)(ii), inserted “For any taxable year ending after December 31, 1975, the preceding sentence shall be applied by substituting ‘9 taxable years’ for ‘7 taxable years’ ” after “year of such loss”, substituted “subsection (g)(1)” for “subsection (j)(1)” after “as defined in” and “subsection (g)” for “subsection (j)” after “as provided in”.
Subsec. (b)(1)(D). Pub. L. 94–455, §§ 1901(a)(29)(C)(iii), 2126, substituted “subsection (h)” for “subsection (k)” after “as defined in” and “20” for “15” after “expropriation loss, to each of the”.
Subsec. (b)(1)(E). Pub. L. 94–455, § 1606(b), added subpar. (E).
Subsec. (b)(2). Pub. L. 94–455, § 1901(a)(29)(C)(iv), substituted “subsection (g)” for “subsections (i) and (j)” after “provided in”.
Subsec. (b)(3). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (b)(3)(A)(i), (ii). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” in two places after “Secretary”.
Subsec. (b)(3)(C)(i). Pub. L. 94–455, § 1901(a)(29)(C)(iii), substituted “subsection (h)” for “subsection (k)” after “as defined in”.
Subsec. (b)(3)(C)(ii), (iii). Pub. L. 94–455, § 1906(b)(13)(A), struck out “Or his delegate” in two places after “Secretary”.
Subsec. (b)(3)(E). Pub. L. 94–455, §§ 806(c), 1901(a)(29)(A)(ii), added subpar. (E). Former subpar. (E), which related to applicability of special rules in computing taxpayer’s net operating loss deduction, was struck out.
Subsec. (b)(3)(F). Pub. L. 94–455, § 1901(a)(29)(A)(ii), struck out subpar. (F) which defined “class of products” and provided for the use of information compiled or published by Secretary of Commerce or manufacturers as prima facie evidence of the total number of units of such class of products manufactured and produced in the United States in a calendar year.
Subsec. (c). Pub. L. 94–455, § 1901(a)(29)(B), struck out “(for any taxable year ending after December 31, 1953)” after “means”.
Subsec. (d)(5), (6). Pub. L. 94–455, § 1052(c)(3), struck out par. (5) relating to special deductions for corporations concerning partially tax-exempt interest and Western Hemisphere corporations, and redesignated par. (6) as (5).
Subsec. (d)(7). Pub. L. 94–455, § 1606(c), added par. (7).
Subsec. (e). Pub. L. 94–455, § 1901(a)(29)(D), struck out “The preceding sentence shall apply with respect to all taxable years, whether they begin before, on, or after January 1, 1954” after “applicable to such other taxable year”.
Subsec. (f). Pub. L. 94–455, § 1901(a)(29)(C)(i), redesignated subsec. (h) as (f). Former subsec. (f), relating to net operating loss deduction for taxable years beginning in 1953 and ending in 1954, was struck out.
Subsec. (g). Pub. L. 94–455, § 1901(a)(29)(C)(i), redesignated subsec. (j) as (g). Former subsec. (g), relating to special transitional rules to be applied to net operating loss deductions, was struck out.
Subsec. (g)(3)(C). Pub. L. 94–455, § 806(b)(2), added subpar. (C).
Subsec. (g)(4). Pub. L. 94–455, § 1901(a)(29)(E), struck out par. (4) relating to carryover of net operating loss for certain regulated transportation corporations for taxable years beginning in 1955 and ending in 1956.
Subsec. (h). Pub. L. 94–455, § 1901(a)(29)(C)(i), redesignated subsec. (k) as (h). Former subsec. (h) redesignated (f).
Subsec. (i). Pub. L. 94–455, § 1901(a)(29)(C)(i), redesignated subsec. (l) as (i). Former subsec. (i), relating to carryback of net operating loss for taxable years beginning in 1957 and ending in 1958, was struck out.
Subsecs. (j) to (l). Pub. L. 94–455, § 1901(a)(29)(C)(i), redesignated subsecs. (j) to (l) as (g) to (i), respectively.
1971—Subsec. (b)(1)(D). Pub. L. 91–677, § 2(a), inserted “(or, with respect to that portion of the net operating loss for such year attributable to a Cuban expropriation loss, to each of the 15 taxable years following the taxable year of such loss)” after “the 10 taxable years following the taxable year of such loss”.
Subsec. (b)(2). Pub. L. 91–677, § 2(b), inserted provisions relating to treatment of Cuban expropriation losses.
Subsec. (k)(3). Pub. L. 91–677, § 2(c), added par. (3).
1969—Subsec. (b)(1). Pub. L. 91–172 substituted “(E), (F), and (G)”, for “and (E)” in subpar. (A)(i) and added subpars. (F) and (G).
1967—Subsec. (b)(1). Pub. L. 90–225, § 3(a)(1)–(3), inserted reference to subpar. (E) in subpars. (A)(i) and (B), and added subpar. (E).
Subsec. (b)(3)(E), (F). Pub. L. 90–225, § 3(a)(4), added subpars. (E) and (F).
1964—Subsec. (b). Pub. L. 88–272, § 210(a)(1)–(4), (b), inserted subpar. (D) in par. (1), references to such subpar. (D) in par. (1)(A)(i) and (1)(B), subpars. (C) and (D) in par. (3), provided that the net operating loss deduction in par. (2)(B) be determined without regard to that portion of a net operating loss due to a foreign expropriation loss, if such portion may not, under par. (1)(D), be carried back to such prior taxable year, and that if a portion of the net operating loss is attributable to foreign expropriation to which par. (1)(D) applied, such portion shall be considered a separate loss for such year to be applied after the other portion of such net operating loss.
Subsec. (j)(1), (2), Pub. L. 88–272, § 234(b)(5), substituted references to section 7701(a)(33) for references to section 1503(c)(1) or (2), wherever appearing.
Subsecs. (k), (l). Pub. L. 88–272, § 210(a)(5), added subsec. (k) and redesignated former subsec. (k) as (l).
1962—Subsec. (b)(1). Pub. L. 87–794 designated existing provisions as cl. (A)(i) and struck out provisions therefrom which authorized a net operating loss for any taxable year ending after Dec. 31, 1957, to be a net operating loss carryover to each of the 5 taxable years following the taxable year of such loss, and added cls. (A)(ii), (B), and (C).
Subsec. (b)(2). Pub. L. 87–794 inserted reference to subsection (j), and substituted “shall be carried to the earliest of the taxable years to which (by reason of paragraph (1))” for “shall be carried to the earliest of the 8 taxable years to which (by reason of subparagraphs (A) and (B) of paragraph (1))”, and “each of the other taxable years” for “each of the other 7 taxable years”.
Subsec. (b)(3). Pub. L. 87–794 added par. (3).
Pub. L. 87–710, § 1(a), authorized a carryover of a net operating loss for any taxable year ending after Dec. 31, 1955, to each of the 5 taxable years following the taxable year of loss, or when such loss occurs in the case of regulated transportation corporation, except as provided in subsec. (j), then to each of the 7 taxable years following the taxable year of loss, and struck out provisions authorizing a net operating loss for any taxable years ending Dec. 31, 1957, to be carried over to each of the 5 taxable years following the taxable year of such loss, in par. (1), and inserted reference to subsec. (j) in par. (2).
Subsec. (d)(4)(D). Pub. L. 87–792 added subpar. (D).
Subsecs. (j), (k). Pub. L. 87–710, § 1(b), added subsec. (j) and redesignated former subsec. (j) as (k).
1958—Subsec. (b). Pub. L. 85–866, § 203(a), substituted “1957” for “1953”, and “3” for “2” in par. (1), and substituted “subsection (i)” for “subsection (f)”, “8” for “7”, and “7” for “6” in par. (2).
Subsecs. (f)(3), (4). Pub. L. 85–866, § 14(a), added pars. (3) and (4).
Subsec. (g)(3), (4). Pub. L. 85–866, § 14(b), added par. (3) and redesignated former par. (3) as (4).
Subsecs. (h) to (j). Pub. L. 85–866, §§ 64(b), 203(b), added subsecs. (h) and (i) and redesignated former subsec. (h) as (j).