I 
111TH CONGRESS 
1ST SESSION H. R. 2452 
To amend the Internal Revenue Code of 1986 to allow a 5-year carryback 
of operating losses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 15, 2009 
Mr. NEAL of Massachusetts (for himself, Mr. TIBERI, Mr. PASCRELL, Mr. 
DAVIS of Alabama, Ms. BEAN, and Mr. HODES) introduced the following 
bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
5-year carryback of operating losses, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Net Operating Loss 
(NOL) Carryback Act’’. 
SEC. 2. 5-YEAR CARRYBACK OF OPERATING LOSSES. 
(a) IN GENERAL.—Subparagraph (H) of section 
172(b)(1) of the Internal Revenue Code of 1986 is amend-
ed to read as follows: 
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‘‘(H) CARRYBACK FOR 2008 AND 2009 NET 
OPERATING LOSSES.— 
‘‘(i) IN GENERAL.—In the case of an 
applicable 2008 or 2009 net operating loss 
with respect to which the taxpayer has 
elected the application of this subpara-
graph— 
‘‘(I) subparagraph (A)(i) shall be 
applied by substituting any whole 
number elected by the taxpayer which 
is more than 2 and less than 6 for ‘2’, 
‘‘(II) subparagraph (E)(ii) shall 
be applied by substituting the whole 
number which is one less than the 
whole number substituted under sub-
clause (I) for ‘2’, and 
‘‘(III) subparagraph (F) shall not 
apply. 
‘‘(ii) APPLICABLE 2008 OR 2009 NET 
OPERATING
LOSS.—For purposes of this 
subparagraph, the term ‘applicable 2008 
or 2009 net operating loss’ means— 
‘‘(I) the taxpayer’s net operating 
loss for any taxable year ending in 
2008 or 2009, or 
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‘‘(ii) if the taxpayer elects to have this 
clause apply in lieu of clause (i), the tax-
payer’s loss from operations for any tax-
able year beginning in 2008 or 2009. 
‘‘(C) ELECTION.—Any election under this 
paragraph shall be made in such manner as 
may be prescribed by the Secretary, and shall 
be made by the due date (including extension of 
time) for filing the taxpayer’s return for the 
taxable year of the loss from operations. Any 
such election, once made, shall be irrevocable. 
‘‘(D) COORDINATION WITH ALTERNATIVE 
TAX NET OPERATING LOSS DEDUCTION.—In the 
case of a taxpayer who elects to have subpara-
graph (B)(ii) apply, section 56(d)(1)(A)(ii) shall 
be applied by substituting ‘ending during 2001 
or 2002 or beginning during 2008 or 2009’ for 
‘ending during 2001, 2002, 2008, or 2009’.’’. 
(d) ANTI-ABUSE RULES.—The Secretary of Treasury 
or the Secretary’s designee shall prescribe such rules as 
are necessary to prevent the abuse of the purposes of the 
amendments made by this section, including anti-stuffing 
rules, anti-churning rules (including rules relating to sale- 
leasebacks), and rules similar to the rules under section 
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1091 of the Internal Revenue Code of 1986 relating to 
losses from wash sales. 
(e) EFFECTIVE DATES.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to net operating losses aris-
ing in taxable years ending after December 31, 
2007. 
(2) ALTERNATIVE TAX NET OPERATING LOSS 
DEDUCTION.—The amendment made by subsection 
(b) shall apply to taxable years ending after 1997. 
(3) LOSS FROM OPERATIONS OF LIFE INSUR-
ANCE COMPANIES.—The amendment made by sub-
section (d) shall apply to losses from operations aris-
ing in taxable years ending after December 31, 
2007. 
(4) TRANSITIONAL RULE.—In the case of a net 
operating loss (or, in the case of a life insurance 
company, a loss from operations) for a taxable year 
ending before the date of the enactment of this 
Act— 
(A) any election made under section 
172(b)(3) or 810(b)(3) of the Internal Revenue 
Code of 1986 with respect to such loss may 
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(notwithstanding such section) be revoked be-
fore the applicable date, 
(B) any election made under section 
172(b)(1)(H) or 810(b)(4) of such Code with 
respect to such loss shall (notwithstanding such 
section) be treated as timely made if made be-
fore the applicable date, and 
(C) any application under section 6411(a) 
of such Code with respect to such loss shall be 
treated as timely filed if filed before the appli-
cable date. 
For purposes of this paragraph, the term ‘‘applica-
ble date’’ means the date which is 60 days after the 
date of the enactment of this Act. 
(f) EXCEPTION
FOR
TARP RECIPIENTS.—The 
amendments made by this section shall not apply to— 
(1) any taxpayer if— 
(A) the Federal Government acquires, at 
any time, an equity interest in the taxpayer 
pursuant to the Emergency Economic Stabiliza-
tion Act of 2008, or 
(B) the Federal Government acquires, at 
any time, any warrant (or other right) to ac-
quire any equity interest with respect to the 
taxpayer pursuant to such Act, 
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(2) the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation, 
and 
(3) any taxpayer which at any time in 2008 or 
2009 is a member of the same affiliated group (as 
defined in section 1504 of the Internal Revenue 
Code of 1986, determined without regard to sub-
section (b) thereof) as a taxpayer described in para-
graph (1) or (2). 
Æ 
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