TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PURPOSES OF LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND CERTAIN BUILT-IN LOSSES.

SEC. 1262. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PURPOSES OF LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND CERTAIN BUILT-IN LOSSES.(a) In General.—Section 382 is amended by adding at the end the following new subsection:“(n) Special Rule for Certain Ownership Changes.—“(1) In general.—The limitation contained in subsection (a) shall not apply in the case of an ownership change which is pursuant to a restructuring plan of a taxpayer which—“(A) is required under a loan agreement or a commitment for a line of credit entered into with the Department of the Treasury under the Emergency Economic Stabilization Act of 2008, and“(B) is intended to result in a rationalization of the costs, capitalization, and capacity with respect to the manufacturing workforce of, and suppliers to, the taxpayer and its subsidiaries.“(2) Subsequent acquisitions.—Paragraph (1) shall not apply in the case of any subsequent ownership change unless such ownership change is described in such paragraph.“(3) Limitation based on control in corporation.—123 STAT. 344“(A) In general.—Paragraph (1) shall not apply in the case of any ownership change if, immediately after such ownership change, any person (other than a voluntary employees’ beneficiary association under section 501(c)(9)) owns stock of the new loss corporation possessing 50 percent or more of the total combined voting power of all classes of stock entitled to vote, or of the total value of the stock of such corporation.“(B) Treatment of related persons.—“(i) In general.—Related persons shall be treated as a single person for purposes of this paragraph.“(ii) Related persons.—For purposes of clause (i), a person shall be treated as related to another person if—“(I) such person bears a relationship to such other person described in section 267(b) or 707(b), or“(II) such persons are members of a group of persons acting in concert.”.(b) Effective Date.—The amendment made by this section shall apply to ownership changes after the date of the enactment of this Act.