S.Amdt. 3373

SA 3373. Mr. BENNETT submitted an amendment intended to be proposed
to amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to
amend the Internal Revenue Code of 1986 to extend certain expiring
provisions, and for other purposes; which was ordered to lie on the
table; as follows:

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--

[[Page S1094]]

``(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.
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