123STA T . 2 9 93 PUBLIC LA W 111 – 92 —NOV . 6, 2 0 09 ‘ ‘ (I II )subpar a g rap h ( F ) sha l l not appl y. ‘‘( i i) AP P LICAB L EN E TO PE R ATIN G LO S S. — For pur - pos e so f this subparagraph , the ter m ‘appli c able net operating loss ’ means the ta x payer’s net operating loss for a taxable year en d ing after D ecember 31 , 20 0 7 , and beginning before J anuary 1, 2010. ‘‘(iii) E LECTION.— ‘‘(I) IN GENERAL.—Any election under this subparagraph may be made only w ith respect to 1 taxable year. ‘‘(II) P ROCE DU RE.—Any election under this subparagraph shall be made in such manner as may be prescribed by the S ecretary, and shall be made by the due date (including extension of time) for filing the return for the taxpayer’s last taxable year beginning in 200 9 . Any such election, once made, shall be irre v ocable. ‘‘(iv) L I M ITATION ON AMOUNT O F LOSS CARR Y BAC K TO 5 T H PRECEDING TA X ABLE YEAR.— ‘‘(I) IN GENERAL.— T he amount of any net oper- ating loss which may be carried bac k to the 5 th taxable year preceding the taxable year of such loss under clause (i) shall not exceed 50 percent of the taxpayer’s taxable income (computed with- out regard to the net operating loss for the loss year or any taxable year thereafter) for such pre- ceding taxable year. ‘‘(II) C ARRYBACKS AND CARRYO V ERS TO OTHER TAXABLE YEARS.—Appropriate ad j ustments in the application of the second sentence of paragraph (2) shall be made to take into account the limita- tion of subclause (I). ‘‘(III) EXCEPTION FOR 20 0 8 ELECTIONS BY SMALL BUSINESSES.—Subclause (I) shall not apply to any loss of an eligible small business with respect to any election made under this subparagraph as in effect on the day before the date of the enactment of the W orker, H omeownership, and B usiness Assistance Act of 2009. ‘‘(v) SPECIAL RULES FOR SMALL BUSINESS.— ‘‘(I) IN GENERAL.—In the case of an eligible small business which made or makes an election under this subparagraph as in effect on the day before the date of the enactment of the Worker, Homeownership, and Business Assistance Act of 2009, clause (iii)(I) shall be applied by substituting ‘2 taxable years’ for ‘1 taxable year’. ‘‘(II) ELIGIBLE SMALL BUSINESS.—For purposes of this subparagraph, the term ‘eligible small busi- ness’ has the meaning given such term by subpara- graph (F)(iii), except that in applying such subparagraph, section 4 4 8 (c) shall be applied by substituting ‘ $ 15,000,000’ for ‘$5,000,000’ each place it appears.’’. (b) ALTERNATIVE TAX N ET O PERATING LOSS DEDUCTION.—Sub- clause (I) of section 5 6 (d)(1)(A)(ii)of the Internal R evenue Code of 1986 is amended to read as follows
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6 .Defin i t i o n. T i m e p e r io d .
