PUBLIC LAW 109–135—DEC. 21, 2005
119 STAT. 2587
‘‘(A) such loss is allowed as a deduction under section 165 for the taxable year, ‘‘(B) such loss is by reason of Hurricane Katrina, and ‘‘(C) the taxpayer elects the application of this subsection with respect to such loss. ‘‘(3) REDUCTION FOR GAINS FROM INVOLUNTARY CONVERSION.—The amount of any Gulf Opportunity Zone public utility casualty loss which would (but for this paragraph) be taken into account under paragraph (1) for any taxable year shall be reduced by the amount of any gain recognized by the taxpayer for such year from the involuntary conversion by reason of Hurricane Katrina of public utility property (as so defined) located in the Gulf Opportunity Zone. ‘‘(4) COORDINATION WITH GENERAL DISASTER LOSS RULES.— Subsection (k) and section 165(i) shall not apply to any Gulf Opportunity Zone public utility casualty loss to the extent such loss is taken into account under paragraph (1). ‘‘(5) ELECTION.—Any election under paragraph (2)(C) shall be made in such manner as may be prescribed by the Secretary and shall be made by the due date (including extensions of time) for filing the taxpayer’s return for the taxable year of the loss. Such election, once made for any taxable year, shall be irrevocable for such taxable year. ‘‘(k) TREATMENT OF NET OPERATING LOSSES ATTRIBUTABLE TO GULF OPPORTUNITY ZONE LOSSES.— ‘‘(1) IN GENERAL.—If a portion of any net operating loss of the taxpayer for any taxable year is a qualified Gulf Opportunity Zone loss, the following rules shall apply: ‘‘(A) EXTENSION OF CARRYBACK PERIOD.—Section 172(b)(1) shall be applied with respect to such portion— ‘‘(i) by substituting ‘5 taxable years’ for ‘2 taxable years’ in subparagraph (A)(i), and ‘‘(ii) by not taking such portion into account in determining any eligible loss of the taxpayer under subparagraph (F) thereof for the taxable year. ‘‘(B) SUSPENSION OF 90 PERCENT AMT LIMITATION.— Section 56(d)(1) shall be applied by increasing the amount determined under subparagraph (A)(ii)(I) thereof by the sum of the carrybacks and carryovers of any net operating loss attributable to such portion. ‘‘(2) QUALIFIED GULF OPPORTUNITY ZONE LOSS.—For purposes of paragraph (1), the term ‘qualified Gulf Opportunity Zone loss’ means the lesser of— ‘‘(A) the excess of— ‘‘(i) the net operating loss for such taxable year, over ‘‘(ii) the specified liability loss for such taxable year to which a 10-year carryback applies under section 172(b)(1)(C), or ‘‘(B) the aggregate amount of the following deductions to the extent taken into account in computing the net operating loss for such taxable year: ‘‘(i) Any deduction for any qualified Gulf Opportunity Zone casualty loss. ‘‘(ii) Any deduction for moving expenses paid or incurred after August 27, 2005, and before January
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