H.R. 2452House111th Congress (2009-2011)In Committee

Net Operating Loss (NOL) Carryback Act

Introduced May 15, 2009

Legislative Activity

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2 earlier actions
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

May 15, 2009

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HouseIntro Referral

Introduced in House

May 15, 2009

HouseIntro Referral

Sponsor introductory remarks on measure. (CR E1180)

May 15, 2009

HouseIntro Referral

Referred to the House Committee on Ways and Means.

May 15, 2009

Floor Debate

16 members

What members said about H.R. 2452 on the floor

8 Republicans7 Democrats1 Independent
John McCain
Sen. John McCainR-AZ · Aug 3, 2009

I ask unanimous consent to call up amendment No. 1910 which is at the desk. I ask unanimous consent that reading of the amendment be dispensed with. Mr. President, I intend to have three amendments…

Tom Udall
Sen. Tom UdallD-NM · Aug 3, 2009

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I ask unanimous consent to speak as in morning business for 12 minutes. Madam President, I…

Sam Brownback
Sen. Sam BrownbackR-KS · Aug 3, 2009

I move to lay that motion on the table. The motion to lay on the table was agreed to. Mr. President, I ask my colleagues, if people have amendments, that they come down to the floor now and start…

Roger F. Wicker
Sen. Roger F. WickerR-MS · Aug 3, 2009

Madam President, I ask unanimous consent to speak as in morning business for 12 minutes. Madam President, in the ongoing debate on health care reform, it has become clearer and clearer that this is a…

Kay  R. Hagan
Sen. Kay R. HaganD-NC · Aug 3, 2009

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I ask unanimous consent to speak for 10 minutes as in morning business. Mr. President, today I…

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Herb Kohl
Sen. Herb KohlD-WI · Aug 3, 2009

I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, the Senate began work on the Agriculture appropriations bill last Thursday. Senator Brownback and I were here…

Lisa Murkowski
Sen. Lisa MurkowskiR-AK · Aug 3, 2009

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I would like to take a few minutes this afternoon to speak to an amendment to the…

Bernard Sanders
Sen. Bernard SandersI-VT · Aug 4, 2009

Madam President, I thank the Senator and applaud his strong efforts in fighting for health care for all Americans. I want to take a few minutes right now to touch on an issue that in fact has not…

John McCain
Sen. John McCainR-AZ · Aug 4, 2009

Mr. President, I suggest the absence of a quorum and ask that the time be divided equally on both sides. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr.…

Mike  Johanns
Sen. Mike Johanns R-NE · Aug 3, 2009

Mr. President, I ask unanimous consent that the pending amendment be set aside so that I may call up amendment No. 2241. Mr. President, I ask unanimous consent that the reading of the amendment be…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Aug 4, 2009

Mr. President, I want to speak in opposition to the amendment of the Senator from Arizona to strike funding for Iowa State University's Rural Vitality Center. According to the Small Business…

Sam Brownback
Sen. Sam BrownbackR-KS · Aug 4, 2009

Mr. President, I have a lot of sympathy for the comments made by the Senator from Arizona. I think he has accurate points. My colleague from Wisconsin makes points, as well, about the program…

Daniel K. Inouye
Sen. Daniel K. InouyeD-HI · Aug 3, 2009

Madam President, the Senate is considering the fiscal year 2010 appropriations bill for the Department of Agriculture, rural development, the Food and Drug Administration, and related agencies. I…

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Tom Coburn
Sen. Tom CoburnR-OK · Aug 3, 2009

Reserving the right to object, I was asked to come down and get my amendments pending. I checked with the staff. All I would like to do is get several amendments up, have them pending, and then we…

Herb Kohl
Sen. Herb KohlD-WI · Aug 4, 2009

Mr. President, this program provides for cooperation between the Federal Government, State government agencies, and local organizations to prevent erosion, floodwater and sediment damages, and to…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Aug 3, 2009

I announce that the Senator from West Virginia (Mr. Byrd), the Senator from Massachusetts (Mr. Kennedy), the Senator from Connecticut (Mr. Lieberman), the Senator from New Jersey (Mr. Menendez), and…

Harry Reid
Sen. Harry ReidD-NV · Aug 4, 2009

Mr. President, I ask unanimous consent that Senator Brown be recognized for a period of approximately 8 minutes, followed by Senator Sanders, to speak until 11:15 a.m., until our recess occurs.

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Aug 4, 2009

I announce that the Senator from West Virginia (Mr. Byrd), the Senator from Massachusetts (Mr. Kennedy), and the Senator from Maryland (Ms. Mikulski) are necessarily absent.

Jon Kyl
Sen. Jon KylR-AZ · Aug 3, 2009

The following Senator is necessarily absent: the Senator from Mississippi (Mr. Cochran). Madam President, I ask for the yeas and nays.

Bernard Sanders
Sen. Bernard SandersI-VT · Aug 3, 2009

Madam President, I seek unanimous consent to set aside the pending amendment so that I may call up my amendments Nos. 2276 and 2271.

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · Aug 3, 2009

I yield to my colleague from Vermont. Amendments Nos. 2276 and 2271 to Amendment No. 1908

Bill Text

Latest available legislative text

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Latest
Introduced in HouseIssued May 15, 2009

I

111th CONGRESS

1st Session

H. R. 2452

IN THE HOUSE OF REPRESENTATIVES

May 15, 2009

Mr. Neal of Massachusetts (for himself, Mr. Tiberi, Mr. Pascrell, Mr. Davis of Alabama, Ms. Bean, and Mr. Hodes) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow a 5-year carryback of operating losses, and for other purposes.

1.

Short title

This Act may be cited as the Net Operating Loss (NOL) Carryback Act.

2.

5-year carryback of operating losses

(a)

In general

Subparagraph (H) of section 172(b)(1) of the Internal Revenue Code of 1986 is amended to read as follows:

(H)

Carryback for 2008 and 2009 net operating losses

(i)

In general

In the case of an applicable 2008 or 2009 net operating loss with respect to which the taxpayer has elected the application of this subparagraph—

(I)

subparagraph (A)(i) shall be applied by substituting any whole number elected by the taxpayer which is more than 2 and less than 6 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 2008 or 2009 net operating loss

For purposes of this subparagraph, the term applicable 2008 or 2009 net operating loss means—

(I)

the taxpayer’s net operating loss for any taxable year ending in 2008 or 2009, 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 2008 or 2009.

(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.

(iv)

Coordination with alternative tax net operating loss deduction

In the case of a taxpayer who elects to have clause (ii)(II) apply, section 56(d)(1)(A)(ii) shall be applied by substituting ending during 2001 or 2002 or beginning during 2008 or 2009 for ending during 2001, 2002, 2008, or 2009.

.

(b)

Alternative tax net operating loss deduction

Subclause (I) of section 56(d)(1)(A)(ii) is amended to read as follows:

(I)

the amount of such deduction attributable to the sum of carrybacks of net operating losses from taxable years ending during 2001, 2002, 2008, or 2009 and carryovers of net operating losses to such taxable years, or

.

(c)

Loss from operations of life insurance companies

Subsection (b) of section 810 is amended by adding at the end the following new paragraph:

(4)

Carryback for 2008 and 2009 losses

(A)

In general

In the case of an applicable 2008 or 2009 loss from operations with respect to which the taxpayer has elected the application of this paragraph, paragraph (1)(A) shall be applied, at the election of the taxpayer, by substituting 5 or 4 for 3.

(B)

Applicable 2008 or 2009 loss from operations

For purposes of this paragraph, the term applicable 2008 or 2009 loss from operations means—

(i)

the taxpayer’s loss from operations for any taxable year ending in 2008 or 2009, or

(ii)

if the taxpayer elects to have this clause apply in lieu of clause (i), the taxpayer’s loss from operations for any taxable year beginning in 2008 or 2009.

(C)

Election

Any election under this paragraph 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 loss from operations. Any such election, once made, shall be irrevocable.

(D)

Coordination with alternative tax net operating loss deduction

In the case of a taxpayer who elects to have subparagraph (B)(ii) apply, section 56(d)(1)(A)(ii) shall be applied by substituting ending during 2001 or 2002 or beginning during 2008 or 2009 for ending during 2001, 2002, 2008, or 2009.

.

(d)

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.

(e)

Effective dates

(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, 2007.

(2)

Alternative tax net operating loss deduction

The amendment made by subsection (b) shall apply to taxable years ending after 1997.

(3)

Loss from operations of life insurance companies

The amendment made by subsection (d) shall apply to losses from operations arising in taxable years ending after December 31, 2007.

(4)

Transitional rule

In the case of a net operating loss (or, in the case of a life insurance company, a loss from operations) for a taxable year ending before the date of the enactment of this Act—

(A)

any election made under section 172(b)(3) or 810(b)(3) of the Internal Revenue Code of 1986 with respect to such loss may (notwithstanding such section) be revoked before the applicable date,

(B)

any election made under section 172(b)(1)(H) or 810(b)(4) of such Code with respect to such loss shall (notwithstanding such section) be treated as timely made if made before the applicable date, and

(C)

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.
(f)

Exception for TARP recipients

The amendments made by this section shall not apply to—

(1)

any taxpayer if—

(A)

the Federal Government acquires, at any time, an equity interest in the taxpayer pursuant to the Emergency Economic Stabilization Act of 2008, or

(B)

the Federal Government acquires, at any time, any warrant (or other right) to acquire any equity interest with respect to the taxpayer pursuant to such Act,

(2)

the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and

(3)

any taxpayer which at any time in 2008 or 2009 is a member of the same affiliated group (as defined in section 1504 of the Internal Revenue Code of 1986, determined without regard to subsection (b) thereof) as a taxpayer described in paragraph (1) or (2).