[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 696 Introduced in House (IH)]
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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.
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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. Garcia of Illinois,
Ms. Garcia of Texas, Mr. Grijalva, Mrs. Hayes, Ms. Kaptur, Mr.
Langevin, Mr. Lieu, Mr. McGovern, Mr. Nadler, Ms. Norton, Ms. Pingree,
Mr. Pocan, Mr. Ryan, Mr. Sarbanes, Ms. Scanlon, Ms. Schakowsky, Mr.
Tonko, Mrs. Watson Coleman, and Mr. Welch) introduced the following
bill; which was referred to the Committee on Ways and Means
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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 Representatives 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''.
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 subparagraphs (B)
and (C)(i) do not apply, 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 redesignating 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).
(b) Disallowed for Certain Taxpayers.--Section 172(b)(1)(D) of such
Code, as amended by the preceding 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
respect to any taxable year, a
corporation the aggregate distributions
(including redemptions) of which during
all taxable years ending after December
31, 2017, exceed the sum of applicable
stock issued of such corporation and 5
percent of the fair market value of the
stock of such corporation as of the
last day of the taxable year.
``(II) Applicable stock issued.--
The term `applicable stock issued'
means, with respect to any corporation,
the aggregate fair market value of
stock (as of the issue date of such
stock) issued by the corporation during
all taxable years ending after December
31, 2017, in exchange for money or
property other than stock in such
corporation.
``(III) Certain preferred stock
disregarded.--For purposes of subclause
(I), stock described in section
1504(a)(4), and distributions
(including redemptions) with respect to
such stock, shall be disregarded.
``(vii) Related person.--For purposes of
clause (v), a person is a related person to a
taxpayer if the related person bears a
relationship to the taxpayer specified in
section 267(b) or section 707(b)(1).''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of section 2303(b) of the
Coronavirus Aid, Relief, and Economic Security Act.
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