To clarify the treatment of net operating loss in calculating tax attributes under section 108 of the Internal Revenue Code of 1986.

1. Adds SEC. ____. CLARIFICATION OF THE TREATMENT OF NET OPERATING LOSSES on page 281, between lines 2 and 3

   Adds a sectionPrinted page

   Inserted: SEC. ____. CLARIFICATION OF THE TREATMENT OF NET OPERATING LOSSES.

   Inserted: (a) In General.--Subparagraph (A) of section 108(b)(2) (relating to tax attributes affected; order of reduction) is amended to read as follows:

   Inserted: "(A) NOL.--Any net operating loss (in the case of a taxpayer which is a member of an affiliated group of corporations which files a consolidated return under section 1501, any consolidated net operating loss, as defined in regulations prescribed by the Secretary) for the taxable year of the discharge, and any net operating loss carryover to such taxable year.".

   Inserted: (b) Effective Date.--The amendment made by subsection (a) shall apply to discharges of indebtedness occurring after May 8, 2003, except that discharges of indebtedness under any plan of reorganization in a case under title 11, United States Code, shall be deemed to occur on the date such plan is confirmed.

   Original wording

   On page 281, between lines 2 and 3, insert the following:

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As printed