85 STAT. ]
PUBLIC LAW 9 2 - 1 7 8 - D E C. 10, 1971
521
deduction (after the application of section 1 4 1 (e)) shall be allowed, notwithstanding paragraph (2), if the tax p a y e r so elects in his r e t u r n. ' ' (d) EFFECTIVE D A T E. — The amendments m a d e by t h i s section shall a p p l y to tax a b l e year s b e g i n n i n g after December 31, 1971. SEC. 302. LIMITATION ON CARRYOVERS OF UNUSED CREDITS AND CAPITAL LOSSES. (a) LiMrrATiox o x CARRYOVERS.—Part V of subchapter C of chapter 1 ( r e l a t i n g to c a r r y o v e r s) is amended by a d d i n g a t the end thereof the following new section: "SEC. 383. SPECIAL LIMITATIONS ON CARRYOVERS OF UNUSED INVESTMENT CREDITS, WORK INCENTIVE PROGRAM CREDITS, FOREIGN TAXES, AND CAPITAL LOSSES.
Ante, p, 520.
26 USC f*38\^^'
"If—
" (1) the o w n e r s h i p and business of a corporation a r e c h a n g e d in the m a n n e r described in section 382(a)(1), or "'(2) i n the case of a r e organization specified i n paragraph (2) of section 3 8 1 (a), the r e is a change i n o w n e r s h i p described in section 3 8 2 (b)(1)(B), the n the l i m i t a t i o n s provided i n section 382 in such cases w i t h respect to the c a r r y o v e r of net operating losses shall a p p l y in the same m a n n e r, as provided under r e g u l a t i o n s prescribed by the Secretary o r h i s deleg a t e, w i t h respect to any unused investment credit of the corporation which c a n otherwise be carried for w a r d under section 4 6 (b), to any ^"'®' P* 5°^* unused w o r k incentive program credit of the corporation which c a n otherwise be c a r r i e d for w a r d under section 5 0 A (b), to any excess Post, p. 554. foreign tax e s of the corporation which can otherwise be carried forw a r d under section 9 0 4 (d), and to any n e t c a p i t a l loss of the corpora- y/statVon^'^' tion which c a n otherwise be c a r r i e d for w a r d under section 1212." 73 Stat. 99,'36o; (b) CLERICAL AMENDMENT. — The table of sections of such part V ^^ ^*^ ^^^> ^'^^' is amended by a d d i n g a t the end thereof the following new item: "Sec. 3S3. Special limitations on carryovers of unused investment credits, work incentive program credits, foreign taxes, and capital losses." (c) EFFECTIVE D A T E. — The amendments m a d e by t h i s section shall be applicable only w i t h respect to r e organizations and other changes in o w n e r s h i p o c c u r r i n g after the date of e n a c t m e n t of t h i s Act pursuant to a p l a n of r e organization o r contract entered into on o r after September 29, 1971. SEC. 303. AMORTIZATION OF CERTAIN EXPENDITURES FOR ON-THEJOB TRAINING AND FOR CHILD CARE CENTERS. (a)
AMORTIZATION
DEDUCTION.—Part
VI
of
subchapter
B
of
chapter 1 ( r e l a t i n g to itemized deductions for i n d i v i d u a l s and cor- ga^sttf'erV'^^' p o r a t i o n s) is amended by a d d i n g a t the e n d thereof the following new section: "SEC. 188. AMORTIZATION OF CERTAIN EXPENDITURES FOR ON-THEJOB TRAINING AND CHILD CARE FACILITIES. " (a) A L L O W A N C E o r DEDUCTION. — A t the election of the tax p a y e r,
m a d e i n accordance w i t h r e g u l a t i o n s prescribed by the Secretary o r his delegate, any expenditure chargeable to capital account m a d e by an e m p l o y e r to acquire, construct, reconstruct, o r r e h a b i l i t a t e section 188 property ( a s defined i n subsection (b)) shall be allowable as a deduction r a t a b l y over a period of 60 months, b e g i n n i n g w i t h the month in which the property is placed in service. The deduction provided by t h i s section w i t h respect to such expenditure shall be i n lieu of any depreciation deduction otherwise allowable on account of such expenditure.
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