MODIFICATION OF TAXABLE YEARS TO WHICH NET OPERATING LOSSES MAY BE CARRIED.

SEC. 1082. MODIFICATION OF TAXABLE YEARS TO WHICH NET OPERATING LOSSES MAY BE CARRIED. (a) In General.—Subparagraph (A) of section 172(b)(1) (relating to years to which loss may be carried) is amended— (1) by striking “3” in clause (i) and inserting “2”, and (2) by striking “15” in clause (ii) and inserting “20”. (b) Retention of 3-Year Carryback for Certain Losses.—Paragraph (1) of section 172(b) is amended by adding at the end the following new subparagraph: “(F) Retention of 3-year carryback in certain cases.— “(i) In general.—Subparagraph (A)(i) shall be applied by substituting ‘3 years’ for ‘2 years’ with respect to the portion of the net operating loss for the taxable year which is an eligible loss with respect to the taxpayer. “(ii) Eligible loss.—For purposes of clause (i), the term ‘eligible loss’ means—111 STAT. 951 “(I) in the case of an individual, losses of property arising from fire, storm, shipwreck, or other casualty, or from theft, “(II) in the case of a taxpayer which is a small business, net operating losses attributable to Presidentially declared disasters (as defined in section 1033(h)(3)), and “(III) in the case of a taxpayer engaged in the trade or business of farming (as defined in section 263A(e)(4)), net operating losses attributable to such Presidentially declared disasters, “(iii) Small business.—For purposes of this subparagraph, the term ‘small business’ means a corporation or partnership which meets the gross receipts test of section 448(c) for the taxable year in which the loss arose (or, in the case of a sole proprietorship, which would meet such test if such proprietorship were a corporation).”. (c) Effective Date.—The amendments made by this section shall apply to net operating losses for taxable years beginning after the date of the enactment of this Act.