123STA T . 3 4 3 PUBLIC LA W 111 –5—FE B.1 7, 2 0 0 9(2)Inter n alR e v en u e S erv ic e No tice 2 0 0 8– 8 3 i s inconsistent w it h the con g ressional intent in enacting such section 382( m ) . (3) T he legal authorit y to p rescri b e Internal Revenue Service Notice 2008–83 is d oubt f ul. ( 4 ) H owever , as ta x payers should generally be able to rely on guidance issued by the Secretary of the Treasury legislation is necessary to clarify the force and effect of Internal Revenue Service Notice 2008–83 and restore the proper application under the Internal Revenue C ode of 19 8 6 of the limitation on built - in losses following an ownership change of a ban k . (b) DET E RMINA TI O NO FF OR C EAN DE FFECT OF INTERNA L RE V - EN U E SERVICE NOTICE 2008–83 E X EM P TIN GB AN KS FROM L IMITA- TION ON CERTAIN BUILT–IN LOSSES FOLLO W ING O WNERS H IP CHANGE. — (1) IN GENERAL.—Internal Revenue Service Notice 2008– 83— ( A ) shall be deemed to have the force and effect of law with respect to any ownership change (as defined in section 382(g) of the Internal Revenue Code of 1986) occur- ring on or before J anuary 16, 2009, and (B) shall have no force or effect with respect to any ownership change after such date. (2) BINDING CONTRACTS.—Notwithstanding paragraph (1), Internal Revenue Service Notice 2008–83 shall have the force and effect of law with respect to any ownership change (as so defined) which occurs after January 16, 2009, if such change— (A) is pursuant to a written binding contract entered into on or before such date, or (B) is pursuant to a written agreement entered into on or before such date and such agreement was described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission re q uired by reason of such ownership change. SEC.126 2. TR E A T M E N T OF CERTA I NO W NERS H I P CHAN G ESFORP U R - POSES OF L IMITATIONS ON NET OPERATING LOSS CARR Y FORWAR D S AND CERTAIN B UILT-IN LOSSES. (a) IN G ENERAL.—Section 382 is amended by adding at the end the following new subsection
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‘(n) SPECIAL RULE FOR CERTAIN OWNERSHIP CHANGES.— ‘‘(1) IN GENERAL.—The limitation contained in subsection (a) shall not apply in the case of an ownership change which is pursuant to a restructuring plan of a taxpayer which— ‘‘(A) is required under a loan agreement or a commit- ment for a line of credit entered into with the Department of the Treasury under the Emergency Economic Stabili z a- tion Act of 2008, and ‘‘(B) is intended to result in a rationalization of the costs, capitalization, and capacity with respect to the manu- facturing workforce of, and suppliers to, the taxpayer and its subsidiaries. ‘‘(2) SU B SE Q UENT ACQUISITIONS.— P aragraph (1) shall not apply in the case of any subsequent ownership change unless such ownership change is described in such paragraph. ‘‘(3) LIMITATION BASED ON CONTROL IN CORPORATION.— 26USC38 2 .
