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Full Text of this Amendment
On page 268, between lines 11 and 12, insert the following:
SEC. 01. 10-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL BUSINESSES.
(a) In General.--Section 172(b)(1) is amended by adding at the end the following new subparagraph:
"(I) CARRYBACK FOR 2010 AND 2011 NET OPERATING LOSSES OF SMALL BUSINESSES.--
"(i) IN GENERAL.--If a small business (as defined in subparagraph (F)(iii) determined by applying such subparagraph for a 10-taxable year period) elects the application of this subparagraph with respect to an applicable 2010 or 2011 net operating loss--
"(I) subparagraph (A)(i) shall be applied by substituting any whole number elected by the taxpayer which is more than 2 and less than 11 for `2',
"(II) subparagraph (E)(ii) shall be applied by substituting the whole number which is one less than the whole number substituted under subclause (I) for `2', and
"(III) subparagraph (F) shall not apply.
"(ii) APPLICABLE 2010 OR 2011 NET OPERATING LOSS.--For purposes of this subparagraph, the term `applicable 2010 or 2011 net operating loss' means--
"(I) the taxpayer's net operating loss for any taxable year ending in 2010 or 2011, or
"(II) if the taxpayer elects to have this subclause apply in lieu of subclause (I), the taxpayer's net operating loss for any taxable year beginning in 2010 or 2011.
"(iii) ELECTION.--Any election under this subparagraph shall be made in such manner as may be prescribed by the Secretary, and shall be made by the due date (including extension of time) for filing the taxpayer's return for the taxable year of the net operating loss. Any such election, once made, shall be irrevocable. Any election under this subparagraph may be made only with respect to 2 taxable years.".
(b) Anti-Abuse Rules.--The Secretary of Treasury or the Secretary's designee shall prescribe such rules as are necessary to prevent the abuse of the purposes of the amendments made by this section, including anti-stuffing rules, anti-churning rules (including rules relating to sale-leasebacks), and rules similar to the rules under section 1091 of the Internal Revenue Code of 1986 relating to losses from wash sales.
(c) Effective Date.--
(1) IN GENERAL.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to net operating losses arising in taxable years ending after December 31, 2009.
(2) TRANSITIONAL RULE.--In the case of a net operating loss for a taxable year ending before the date of the enactment of this Act--
(A) any election made under section 172(b)(3) of the Internal Revenue Code of 1986 with respect to such loss may (notwithstanding such section) be revoked before the applicable date, and
(B) any application under section 6411(a) of such Code with respect to such loss shall be treated as timely filed if filed before the applicable date.
For purposes of this paragraph, the term "applicable date" means the date which is 60 days after the date of the enactment of this Act.
SEC. 02. TRANSFER OF STIMULUS FUNDS.
Notwithstanding section 5 of the American Recovery and Reinvestment Act of 2009 (Pub. Law 111-5), from the amounts appropriated or made available and remaining unobligated under such Act, the Director of the Office of Management and Budget shall transfer from time to time to the general fund of the Treasury an amount equal to the sum of the amount of any net reduction in revenues and the amount of any net increase in spending resulting from the enactment of this Act.
(As printed in the Congressional Record for the Senate on Mar 3, 2010.)