I

103D CONGRESS

1ST SESSION H. R. 2278

To permit certain air carriers to immediately utilize accumulated net operating

losses.

IN THE HOUSE OF REPRESENTATIVES

MAY 26, 1993

Mr. OBERSTAR (for himself, Mr. RAMSTAD, Mr. CARR, Mr. LEVIN, and Mr.

KYL) introduced the following bill; which was referred to the Committee

on Ways and Means

A BILL

To permit certain air carriers to immediately utilize

accumulated 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. SPECIAL PROVISION RELATING TO AIR CAR4 RIERS WITH NET OPERATING LOSSES.

5 (a) GENERAL RULE.—Notwithstanding any limita6 tion on the use of net operating loss carryforwards under

7 section 382 of the Internal Revenue Code of 1986, if a

8 qualified air carrier makes an election under this section

9 for its 1st taxable year beginning after December 31,

10 1991, with respect to any portion of its existing NOL
2

•HR 2278 IH

1 carryforwards, the amount determined under subsection

2 (b) shall be treated as a payment against the tax imposed

3 by chapter 1 of the Internal Revenue Code of 1986 for

4 such 1st taxable year made by such carrier on the later

5 of—

6 (1) the date its return under such chapter 1 for

7 such 1st taxable year is filed, or

8 (2) the date such election is made.

9 (b) AMOUNT.—For purposes of subsection (a), the

10 amount determined under this subsection shall be the less11 er of—

12 (1) 34 percent of the portion of the qualified air

13 carrier’s existing NOL carryforwards to which the

14 election under subsection (a) applies, or

15 (2) the aggregate transportation excise taxes

16 deposited by such carrier during calendar year 1992.

17 (c) DATE FOR PAYMENT BY SECRETARY.—Any over18 payment of tax by reason of this section shall be paid by

19 the Secretary of the Treasury not later than the 30th day

20 after the date the payment referred to in subsection (a)

21 is treated as made.

22 (d) CARRIER MAKING ELECTION MAY NOT USE

23 SAME AMOUNTS UNDER SECTION 172.—

24 (1) IN GENERAL.—Except as provided in para25 graph (2), in the case of a qualified air carrier which
3

•HR 2278 IH

1 makes an election under subsection (a), the portion

2 of such carrier’s existing NOL carryforwards to

3 which such election applies shall not be taken into

4 account under section 172 of the Internal Revenue

5 Code of 1986 for any taxable year beginning after

6 December 31, 1992. Such election shall be treated

7 as made with respect to net operating loss

8 carryovers in the order in which they arose, begin9 ning with the earliest loss year.

10 (2) MINIMUM TAX NOT AFFECTED.—Section

11 53, and part VI of subchapter A of chapter 1, of the

12 Internal Revenue Code of 1986 shall be applied as

13 if this section had never been enacted.

14 (e) DEFINITIONS.—For purposes of this section—

15 (1) QUALIFIED AIR CARRIER.—The term

16 ‘‘qualified air carrier’’ means an air carrier that is

17 certificated under section 401 of the Federal Avia18 tion Act, that is operating in the commercial car19 riage of passengers or freight for hire as of January

20 1, 1993, and that is required by law to collect and

21 deposit transportation excise taxes.

22 (2) EXISTING NOL CARRYFORWARDS.—The

23 term ‘‘existing NOL carryforwards’’ means the ag24 gregate net operating loss carryovers under section

25 172 of the Internal Revenue Code of 1986—
4

•HR 2278 IH

1 (A) available for the 1st taxable year of

2 the qualified air carrier beginning after Decem3 ber 31, 1992, and

4 (B) from taxable years preceding such 1st

5 taxable year.

6 If the qualified air carrier is a member of an affili7 ated group (within the meaning of section 1502 of

8 the Internal Revenue Code of 1986) filing consoli9 dated tax returns, the existing NOL carryovers shall

10 be the consolidated net operating loss carryovers

11 under such section 172 of such affiliated group de12 termined as of the beginning of such 1st taxable

13 year.

14 (3) TRANSPORTATION EXCISE TAXES.—The

15 term ‘‘transportation excise taxes’’ means the aggre16 gate of—

17 (A) the taxes imposed by section 4261 of

18 the Internal Revenue Code of 1986, and

19 (B) the taxes imposed by section 4271 of

20 the Internal Revenue Code of 1986.

Æ