PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-531 "(i) shall be a net operating loss carryback to each of the 3 taxable years preceding the taxable year of such loss, and "(ii) shall be a net operating loss carryover to each of the 15 taxable years following the taxable year of the loss. "(B) SPECIAL RULES FOR REIT'S. — "(i) IN GENERAL. — A net operating loss for a REIT year shall not be a net operating loss carryback to any taxable year preceding the taxable year of such loss, "(ii) SPECIAL RULE.— In the case of any net operating loss for a taxable year which is not a REIT year, such loss shall not be carried back to any taxable year which is a REIT year. "(iii) REIT YEAR.— For purposes of this subparagraph, the term 'REIT year' means any taxable year for which the provisions of part II of subchapter M (relating to real estate investment trusts) apply to the taxpayer. "(C) SPECIFIED LIABILITY LOSSES. — In the case of a taxpayer which has a specified liability loss (as defined in subsection (f)) for a taxable year, such specified liability loss shall be a net operating loss carryback to each of the 10 taxable years preceding the taxable year of such loss. "(D) BAD DEBT LOSSES OF COMMERCIAL BANKS. —In the case of any bank (as defined in section 585(a)(2)), the portion of the net operating loss for any taxable year beginning after December 31, 1986, and before January 1, 1994, which is attributable to the deduction allowed under section 166(a) shall be a net operating loss carryback to each of the 10 taxable years preceding the taxable year of the loss and a net operating loss carryover to each of the 5 taxable years following the taxable year of such loss. "(E) EXCESS INTEREST LOSS. — " (i) IN GENERAL.— If— "(I) there is a corporate equity reduction transaction, and "(II) an applicable corporation has a corporate equity reduction interest loss for any loss limitation year ending after August 2, 1989, then the corporate equity reduction interest loss shall be a net operating loss carryback and carryover to the taxable years described in subparagraph (A), except that such loss shall not be carried back to a taxable year preceding the taxable year in which the corporate equity reduction transaction occurs. "(ii) Loss UMiTATiON YEAR. — For purposes of clause (i) and subsection (m), the term 'loss limitation year' means, with respect to any corporate equity reduction transaction, the taxable year in which such transaction occurs and each of the 2 succeeding taxable years. "(iii) APPLICABLE CORPORATION.— For purposes of clause (i), the term 'applicable corporation' means— "(I) a C corporation which acquires stock, or the stock of which is acquired in a major stock acquisition.
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