I 
117TH CONGRESS 
1ST SESSION 
H. R. 696 
To amend the Internal Revenue Code of 1986 to impose a limitation on 
excess business losses of non-corporate taxpayers and to modify the 
carryback of net operating losses for certain taxable years. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 2, 2021 
Mr. DOGGETT (for himself, Ms. DELAURO, Mr. COHEN, Mr. BEYER, Mr. 
BLUMENAUER, Ms. BONAMICI, Mr. CASTEN, Ms. CHU, Mr. CICILLINE, 
Mr. CONNOLLY, Mr. DEFAZIO, Ms. DEGETTE, Ms. ESHOO, Mr. GARCI´A 
of Illinois, Ms. GARCIA of Texas, Mr. GRIJALVA, Mrs. HAYES, Ms. KAP-
TUR, Mr. LANGEVIN, Mr. LIEU, Mr. MCGOVERN, Mr. NADLER, Ms. NOR-
TON, Ms. PINGREE, Mr. POCAN, Mr. RYAN, Mr. SARBANES, Ms. SCAN-
LON, Ms. SCHAKOWSKY, Mr. TONKO, Mrs. WATSON COLEMAN, and Mr. 
WELCH) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
a limitation on excess business losses of non-corporate 
taxpayers and to modify the carryback of net operating 
losses for certain taxable years. 
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 ‘‘CARES Windfall for 
the Wealthiest Repeal Act’’. 
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SEC. 2. LIMITATION ON EXCESS BUSINESS LOSSES OF NON- 
CORPORATE 
TAXPAYERS 
RESTORED 
AND 
MADE PERMANENT. 
(a) IN GENERAL.—Section 461(l)(1) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(1) LIMITATION.—In the case of a taxpayer 
other than a corporation, any excess business loss of 
the taxpayer shall not be allowed.’’. 
(b) FARMING LOSSES.—Section 461 of such Code is 
amended by striking subsection (j). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 3. CERTAIN TAXPAYERS ALLOWED CARRYBACK OF 
NET OPERATING LOSSES ARISING IN 2019 
AND 2020. 
(a) CARRYBACK OF LOSSES ARISING IN 2019 AND 
2020.— 
(1) IN GENERAL.—Section 172(b)(1)(D)(i) of 
the Internal Revenue Code of 1986 is amended to 
read as follows: 
‘‘(i) IN GENERAL.—In the case of any 
net operating loss arising in a taxable year 
beginning after December 31, 2018, and 
before January 1, 2021, and to which sub-
paragraphs (B) and (C)(i) do not apply, 
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such loss shall be a net operating loss 
carryback to each taxable year preceding 
the taxable year of such loss, but not to 
any taxable year beginning before January 
1, 2018.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The heading for section 172(b)(1)(D) 
of such Code is amended by striking ‘‘2018, 
2019, AND’’ and inserting ‘‘2019 AND’’. 
(B) Section 172(b)(1)(D) of such Code is 
amended by striking clause (iii) and by redesig-
nating clauses (iv) and (v) as clauses (iii) and 
(iv), respectively. 
(C) Section 172(b)(1)(D)(iii) of such Code, 
as so redesignated, is amended by striking 
‘‘(i)(I)’’ and inserting ‘‘(i)’’. 
(D) Section 172(b)(1)(D)(iv) of such Code, 
as so redesignated, is amended— 
(i) 
by 
striking 
‘‘If 
the 
5-year 
carryback period under clause (i)(I)’’ in 
subclause 
(I) 
and 
inserting 
‘‘If 
the 
carryback period under clause (i)’’, and 
(ii) by striking ‘‘2018 or’’ in subclause 
(II). 
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(b) DISALLOWED FOR CERTAIN TAXPAYERS.—Sec-
tion 172(b)(1)(D) of such Code, as amended by the pre-
ceding provisions of this Act, is amended by adding at the 
end the following new clauses: 
‘‘(v) CARRYBACK
DISALLOWED
FOR 
CERTAIN TAXPAYERS.—Clause (i) shall not 
apply with respect to any loss arising in a 
taxable year in which— 
‘‘(I) the taxpayer (or any related 
person) is not allowed a deduction 
under this chapter for the taxable 
year by reason of section 162(m) or 
section 280G, or 
‘‘(II) the taxpayer (or any related 
person) is a specified corporation for 
the taxable year. 
‘‘(vi) SPECIFIED CORPORATION.—For 
purposes of clause (v)— 
‘‘(I) IN
GENERAL.—The term 
‘specified corporation’ means, with re-
spect to any taxable year, a corpora-
tion the aggregate distributions (in-
cluding redemptions) of which during 
all taxable years ending after Decem-
ber 31, 2017, exceed the sum of appli-
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