MODIFICATION TO CORPORATION EQUITY REDUCTION LIMITATIONS ON NET OPERATING LOSS CARRYBACKS.

SEC. 11324. MODIFICATION TO CORPORATION EQUITY REDUCTION LIMITATIONS ON NET OPERATING LOSS CARRYBACKS. (a) Repeal of Exception for Acquisitions of Subsidiaries —Clause (ii) of section 172(m)(3)(B) (relating to exceptions) is amended to read as follows: “(ii) Exception.— The term ‘major stock acquisition’ does not include a qualified stock purchase (within the meaning of section 338) to which an election under section 338 applies.” (b) Effective Date.— (1) In general.— Except as provided in paragraph (2), the amendment made by subsection (a) shall apply to acquisitions after October 9, 1990. (2) Binding contract exception.— The amendment made by subsection (a) shall not apply to any acquisition pursuant to a written binding contract m effect on October 9, 1990, and at all times thereafter before such acquisition.