[Page S744]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3990. Mr. ALLARD submitted an amendment intended to be proposed by 
him to the bill H.R. 5140, to provide economic stimulus through 
recovery rebates to individuals, incentives for business investment, 
and an increase in conforming and FHA loan limits; which was ordered to 
lie on the table; as follows:

       On page 14, after line 22, insert the following:

     SEC. 104. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED 
                   FOR 5 YEARS; TEMPORARY SUSPENSION OF 90 PERCENT 
                   AMT LIMIT.

       (a) In General.--Subparagraph (H) of section 172(b)(1) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(H) 5-year carryback of certain losses.--
       ``(i) Taxable years ending during 2001 and 2002.--In the 
     case of a net operating loss for any taxable year ending 
     during 2001 or 2002, subparagraph (A)(i) shall be applied by 
     substituting `5' for `2' and subparagraph (F) shall not 
     apply.
       ``(ii) Taxable years beginning or ending during 2006, 2007, 
     and 2008.--In the case of a net operating loss for any 
     taxable year beginning or ending during 2006, 2007, or 2008--

       ``(I) subparagraph (A)(i) shall be applied by substituting 
     `5' for `2',
       ``(II) subparagraph (E)(ii) shall be applied by 
     substituting `4' for `2', and
       ``(III) subparagraph (F) shall not apply.''.

       (b) Temporary Suspension of 90 Percent Limit on Certain NOL 
     Carrybacks and Carryovers.--
       (1) In general.--Section 56(d) of the of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new paragraph:
       ``(3) Additional adjustments.--For purposes of paragraph 
     (1)(A), the amount described in clause (I) of paragraph 
     (1)(A)(ii) shall be increased by the amount of the net 
     operating loss deduction allowable for the taxable year under 
     section 172 attributable to the sum of--
       ``(A) carrybacks of net operating losses from taxable years 
     beginning or ending during 2006, 2007, and 2008, and
       ``(B) carryovers of net operating losses to taxable years 
     beginning or ending during 2006, 2007, or 2008.''.
       (2) Conforming amendment.--Subclause (I) of section 
     56(d)(1)(A)(i) of such Code is amended by inserting ``amount 
     of such'' before ``deduction described in clause (ii)(I)''.
       (c) Anti-Abuse Rules.--The Secretary of Treasury or the 
     Secretary's designee shall prescribes 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 
     1091 of the Internal Revenue Code of 1986 relating to losses 
     from wash sales.
       (d) Effective Dates.--
       (1) Subsection (a).--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by subsection (a) shall apply to net 
     operating losses arising in taxable years beginning or ending 
     in 2006, 2007, or 2008.
       (B) Election.--In the case of a net operating loss for a 
     taxable year beginning or ending during 2006 or 2007--
       (i) any election made under section 172(b)(3) of the 
     Internal Revenue Code of 1986 may (notwithstanding such 
     section) be revoked before November 1, 2008, and
       (ii) any election made under section 172(j) of such Code 
     shall (notwithstanding such section) be treated as timely 
     made if made before November 1, 2008.
       (2) Subsection (b).--The amendments made by subsection (b) 
     shall apply to taxable years ending after December 31, 1995.
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