Tax Update Blog: Permalink

Look at Section 1211 of the Bill:

SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES.
(a) In General- Subparagraph (H) of section 172(b)(1) is amended to read as follows:
`(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 subparagraph--
`(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 subclause (II) 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
`(II) if the taxpayer elects to have this subclause apply in lieu of subclause (I), the taxpayer's net operating loss for any
taxable year beginning in 2008 or 2009.
`(iii) ELECTION- Any election under this subparagraph 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 net
operating loss. Any such election, once made, shall be irrevocable.
`(iv) COORDINATION WITH ALTERNATIVE TAX NET OPERATING LOSS DEDUCTION- In the case of a taxpayer who elects to
have clause (ii)(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'.'.
(b) Alternative Tax Net Operating Loss Deduction- Subclause (I) of section 56(d)(1)(A)(ii) is amended to read as follows:
`(I) the amount of such deduction attributable to the sum of carrybacks of net operating losses from taxable years ending
during 2001, 2002, 2008, or 2009 and carryovers of net operating losses to such taxable years, or'.
(c) Loss From Operations of Life Insurance Companies- Subsection (b) of section 810 is amended by adding at the end the following new
paragraph:
`(4) CARRYBACK FOR 2008 AND 2009 LOSSES-
`(A) IN GENERAL- In the case of an applicable 2008 or 2009 loss from operations with respect to which the taxpayer has elected the
application of this paragraph, paragraph (1)(A) shall be applied, at the election of the taxpayer, by substituting `5' or `4' for `3'.
`(B) APPLICABLE 2008 OR 2009 LOSS FROM OPERATIONS- For purposes of this paragraph, the term `applicable 2008 or 2009 loss
from operations' means--
`(i) the taxpayer's loss from operations for any taxable year ending in 2008 or 2009, or
`(ii) if the taxpayer elects to have this clause apply in lieu of clause (i), the taxpayer's loss from operations for any taxable 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
subparagraph (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) Conforming Amendment- Section 172 is amended by striking subsection (k) and by redesignating subsection (l) as subsection (k).
(e) Effective Date-
The Library of Congress > THOMAS Home > Bills, Resolutions > Search Results
Search Results - THOMAS (Library of Congress) Page 1 of 5
http://thomas.loc.gov/cgi-bin/query/F?c111:7:./temp/~c11158tDwt:e1638446: 2/12/2009
(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to net operating losses
arising 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 INSURANCE COMPANIES- The amendment made by subsection (d) shall apply to losses from
operations arising 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
(notwithstanding such section) be revoked before the applicable date,
(B) any election made under section 172(k) or 810(b)(4) of such Code with respect to such loss shall (notwithstanding such section)
be treated as timely made if made before 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
applicable date.
For purposes of this paragraph, the term `applicable date' means the date which is 60 days after the date of the enactment of this Act.

Jeff, I think that's the Senate bill, not the revised conference version. Either that, or the $5 million limit didn't make the cut.

I believe the conference agreement increased the NOL carryback to businesses with less than $15 million in revenue. Word up.