II 

111TH CONGRESS 

1ST SESSION S. 293 

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 

JANUARY 21, 2009 

Mr. SPECTER 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. CARRYBACK OF CERTAIN NET OPERATING 

4 LOSSES ALLOWED FOR 5 YEARS; TEMPORARY 

5 SUSPENSION OF 90 PERCENT AMT LIMIT. 

6 (a) IN GENERAL.—Subparagraph (H) of section 

7 172(b)(1) of the Internal Revenue Code of 1986 is amend8 ed to read as follows: 


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•S 293 IS

1 ‘‘(H) 5-YEAR CARRYBACK OF CERTAIN

2 LOSSES.— 

3 ‘‘(i) TAXABLE YEARS ENDING DURING

4 2001 AND 2002.—In the case of a net oper5 ating loss for any taxable year ending dur6 ing 2001 or 2002, subparagraph (A)(i) 

7 shall be applied by substituting ‘5’ for ‘2’ 

8 and subparagraph (F) shall not apply. 

9 ‘‘(ii) TAXABLE YEARS BEGINNING OR

10 ENDING DURING 2007, 2008, AND 2009.—In 

11 the case of a net operating loss for any 

12 taxable year beginning or ending during 

13 2007, 2008, or 2009— 

14 ‘‘(I) subparagraph (A)(i) shall be 

15 applied by substituting ‘5’ for ‘2’, 

16 ‘‘(II) subparagraph (E)(ii) shall 

17 be applied by substituting ‘4’ for ‘2’, 

18 and 

19 ‘‘(III) subparagraph (F) shall not 

20 apply.’’. 

21 (b) TEMPORARY SUSPENSION OF 90 PERCENT LIMIT

22 ON CERTAIN NOL CARRYBACKS AND CARRYOVERS.— 

23 (1) IN GENERAL.—Section 56(d) of the Internal 

24 Revenue Code of 1986 is amended by adding at the 

25 end the following new paragraph: 


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1 ‘‘(3) ADDITIONAL ADJUSTMENTS.—For pur2 poses of paragraph (1)(A), the amount described in 

3 clause (I) of paragraph (1)(A)(ii) shall be increased 

4 by the amount of the net operating loss deduction 

5 allowable for the taxable year under section 172 at6 tributable to the sum of— 

7 ‘‘(A) carrybacks of net operating losses 

8 from taxable years beginning or ending during 

9 2007, 2008, and 2009, and 

10 ‘‘(B) carryovers of net operating losses to 

11 taxable years beginning or ending during 2007, 

12 2008, or 2009.’’. 

13 (2) CONFORMING AMENDMENT.—Subclause (I) 

14 of section 56(d)(1)(A)(i) of such Code is amended by 

15 inserting ‘‘amount of such’’ before ‘‘deduction de16 scribed in clause (ii)(I)’’. 

17 (c) ANTI-ABUSE RULES.—The Secretary of the 

18 Treasury or the Secretary’s designee shall prescribe such 

19 rules as are necessary to prevent the abuse of the purposes 

20 of the amendments made by this section, including anti21 stuffing rules, anti-churning rules (including rules relating 

22 to sale-leasebacks), and rules similar to the rules under 

23 section 1091 of the Internal Revenue Code of 1986 relat24 ing to losses from wash sales. 

25 (d) EFFECTIVE DATES.— 


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1 (1) SUBSECTION (a).— 

2 (A) IN GENERAL.—Except as provided in 

3 subparagraph (B), the amendments made by 

4 subsection (a) shall apply to net operating 

5 losses arising in taxable years beginning or end6 ing in 2007, 2008, or 2009. 

7 (B) ELECTION.—In the case of a net oper8 ating loss for a taxable year beginning or end9 ing during 2007 or 2008— 

10 (i) any election made under section 

11 172(b)(3) of the Internal Revenue Code of 

12 1986 may (notwithstanding such section) 

13 be revoked before November 1, 2009, and 

14 (ii) any election made under section 

15 172(j) of such Code shall (notwithstanding 

16 such section) be treated as timely made if 

17 made before November 1, 2009. 

18 (2) SUBSECTION (b).—The amendments made 

19 by subsection (b) shall apply to taxable years ending 

20 after December 31, 2006. 

Æ 


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