§ 383. Special limitations on certain excess credits, etc.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1971

   Revenue Act of 1971

   Pub. L. 92–178 title III § 302(a) · 85 Stat. 494

   Enacted · 26 U.S.C. § 383

   Added Pub. L. 92–178, title III, § 302(a), Dec. 10, 1971, 85 Stat. 521

   Source evidence

   Code source credit
   Added Pub. L. 92–178, title III, § 302(a), Dec. 10, 1971, 85 Stat. 521

   Enacted provision · exact public law section
   (a) Limitation on Carryovers— Part V of subchapter C of chapter 1 (relating to carryovers) is amended by adding at the end thereof 68 A Stat. 124. 26 USC 381. the following new section: “SEC. 383. SPECIAL LIMITATIONS ON CARRYOVERS OF UNUSED INVESTMENT CREDITS, WORK INCENTIVE PROGRAM CREDITS, FOREIGN TAXES, AND CAPITAL LOSSES. “If— “(1) the ownership and business of a corporation are changed in the manner described in section 382(a) (1), or “(2) in the case of a reorganization specified in paragraph (2) of section 381(a), there is a change in ownership described in section 382(b) (1) (B), then the limitations provided in section 382 in such cases with respect to the carryover of net operating losses shall apply in the same manner, as provided under regulations prescribed by the Secretary or his delegate, with respect to any unused investment credit of the corporation which can otherwise be carried forward under section 46(b), to any Ante, p. 506. unused work incentive program credit of the corporation which can otherwise lie carried forward under section 50A(b), to any Post, p. 554. excess foreign taxes of the corporation 72 Stat. 1639; 74 Stat. 1011. 78 Stat. 99, 78 Stat. 360; 83 Stat. 638, 83 Stat. 642. which can otherwise be carried for-ward under section 904(d), and to any net capital loss of the corporation which can otherwise be carried forward under section 1212.”

2. 1976

   Pub. L. 94–455 title VIII § 806(f)(2) · 90 Stat. 1520

   1. Struck · 26 U.S.C. § 383

      Pub. L. 94–455, §§ 1031(b)(5), 1906(b)(13)(A), struck out “or his delegate” after “Secretary”

   2. Substituted · 26 U.S.C. § 383

      Pub. L. 94–455, §§ 1031(b)(5), 1906(b)(13)(A), substituted “section 904(c)” for “section 904(d)”, respectively, in section 383 set out first

   Source evidence

   Code amendment note
   Pub. L. 94–455, §§ 1031(b)(5), 1906(b)(13)(A), struck out “or his delegate” after “Secretary”, and substituted “section 904(c)” for “section 904(d)”, respectively, in section 383 set out first.

   Enacted provision · exact public law section
   (2) Amendment of section 383.— Section 383 (relating to 26 USC 383. special limitations on certain carryovers) is amended to read as follows: “SEC. 383. SPECIAL LIMITATIONS ON UNUSED INVESTMENT CREDITS, WORK INCENTIVE PROGRAM CREDITS, FOREIGN TAXES, AND CAPITAL LOSSES. “In the case of a change of ownership of a corporation in the manner described in section Ante, p. 1599. 382 (a) or (b), the limitations provided in section 382 in such cases with respect to net operating losses shall apply in the same manner, as provided under regulations prescribed by the Secretary, with respect to any unused investment credit, of the corporation under section 46(b), to any unused work incentive program credit of Ante, p. 1582. the corporation under section 50A(b), to any excess foreign taxes of the corporation under section 904(d), and to any net capital loss of the Post, p. 1620. corporation under section 1212.”

   Effective date note
   Amendment by section 621(b) of Pub. L. 99–514 applicable to any ownership change after Dec. 31, 1986, except as otherwise provided, see section 621(f) of Pub. L. 99–514, as amended, set out as a note under section 382 of this title. Repeal of amendment by section 806(f)(1) of Pub. L. 94–455 effective Jan. 1, 1986, with certain exceptions, see section 621(f)(2) of Pub. L. 99–514, set out as a note under section 382 of this title.

3. 1976

   Pub. L. 94–455 § 806(f)(2) · 90 Stat. 1520

   Repealed · 26 U.S.C. § 383

   Pub. L. 94–455, § 806(f)(2), which substituted, in sections 383 as related to section 382(a) and (b) of this title, provisions that the net operating loss limitations in section 382 shall apply to unused investment credits under section 46(b), to unused work incentive program credits under section 50A(b), to excess foreign taxes under section 904(d) and to net capital losses under section 1212 for provisions that the net operating loss carryover limitations in section 382 shall apply, in the case of ownership changes described in section 382(a)(1) or reorganizations specified in section 381(a)(2) resulting in ownership changes described in section 382(b)(1)(B), to unused investment credits under section 46(b), to unused work incentive program credits under section 50A(B), to excess foreign taxes under section 904(c), and to net capital losses under section 1212, was repealed by Pub. L. 99–514, § 621(e)(1). See Effective Date of 1986 and 1976 Amendment notes below

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 94–455, § 806(f)(2), which substituted, in sections 383 as related to section 382(a) and (b) of this title, provisions that the net operating loss limitations in section 382 shall apply to unused investment credits under section 46(b), to unused work incentive program credits under section 50A(b), to excess foreign taxes under section 904(d) and to net capital losses under section 1212 for provisions that the net operating loss carryover limitations in section 382 shall apply, in the case of ownership changes described in section 382(a)(1) or reorganizations specified in section 381(a)(2) resulting in ownership changes described in section 382(b)(1)(B), to unused investment credits under section 46(b), to unused work incentive program credits under section 50A(B), to excess foreign taxes under section 904(c), and to net capital losses under section 1212, was repealed by Pub. L. 99–514, § 621(e)(1). See Effective Date of 1986 and 1976 Amendment notes below.

   Enacted provision · exact public law section
   (2) Amendment of section 383.— Section 383 (relating to 26 USC 383. special limitations on certain carryovers) is amended to read as follows: “SEC. 383. SPECIAL LIMITATIONS ON UNUSED INVESTMENT CREDITS, WORK INCENTIVE PROGRAM CREDITS, FOREIGN TAXES, AND CAPITAL LOSSES. “In the case of a change of ownership of a corporation in the manner described in section Ante, p. 1599. 382 (a) or (b), the limitations provided in section 382 in such cases with respect to net operating losses shall apply in the same manner, as provided under regulations prescribed by the Secretary, with respect to any unused investment credit, of the corporation under section 46(b), to any unused work incentive program credit of Ante, p. 1582. the corporation under section 50A(b), to any excess foreign taxes of the corporation under section 904(d), and to any net capital loss of the Post, p. 1620. corporation under section 1212.”

   Effective date note
   Amendment by section 621(b) of Pub. L. 99–514 applicable to any ownership change after Dec. 31, 1986, except as otherwise provided, see section 621(f) of Pub. L. 99–514, as amended, set out as a note under section 382 of this title. Repeal of amendment by section 806(f)(1) of Pub. L. 94–455 effective Jan. 1, 1986, with certain exceptions, see section 621(f)(2) of Pub. L. 99–514, set out as a note under section 382 of this title.

4. 1977

   Tax Reduction and Simplification Act of 1977

   Pub. L. 95–30 § 202(d)(3)(C) · 91 Stat. 126

   Inserted · 26 U.S.C. § 383

   Pub. L. 95–30, § 202(d)(3)(C), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted “to any unused new employee credit of the corporation which could otherwise be carried forward under section 53(c)” in text and “new employee credits,” in catchline

   Source evidence

   Code amendment note
   Pub. L. 95–30, § 202(d)(3)(C), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted “to any unused new employee credit of the corporation which could otherwise be carried forward under section 53(c)” in text and “new employee credits,” in catchline.

   Enacted provision · exact public law section
   (C) Section 383 (as in effect on the day before the date of the enactment of the Tax Reform Act of 1976) is amended— (i) by inserting “to any unused new employee credit of the corporation which could otherwise be carried forward under section 53(c),” after “section 50A(b),”; and (ii) by striking out “WORK INCENTIVE PROGRAM CREDITS,” in the section heading and inserting in lieu thereof “WORK INCENTIVE PROGRAM CREDITS, NEW EMPLOYEE CREDITS,”.

5. 1977

   Tax Reduction and Simplification Act of 1977

   Pub. L. 95–30 § 202(d)(3)(B) · 91 Stat. 126

   1. Amended · 26 U.S.C. § 383

      Pub. L. 95–30, § 202(d)(3)(B), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title

   2. Inserted · 26 U.S.C. § 383

      Pub. L. 95–30, § 202(d)(3)(B), in section 383, as inserted “to any unused new employee credit of the corporation under section 53(c)” in text and “new employee credits,” in section catchline

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 95–30, § 202(d)(3)(B), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted “to any unused new employee credit of the corporation under section 53(c)” in text and “new employee credits,” in section catchline.

   Enacted provision · exact public law section
   (B) Section 383 (relating to special limitations on unused investment, credits, work incentive program credits, foreign taxes, and capital losses), as in effect for taxable years beginning after June 30, 1978, is amended— (i) by inserting “to any unused new employee credit of the corporation under section 53(c),” after “section 50A(b),”;and (ii) by striking out “WORK INCENTIVE PROGRAM CREDITS,” in the section heading and inserting in lieu thereof “WORK INCENTIVE PROGRAM CREDITS, NEW EMPLOYEE CREDITS,”.

6. 1980

   Technical Corrections Act of 1979

   Pub. L. 96–222 title I § 103(a)(6)(G)(xiii) · 94 Stat. 194

   Substituted · 26 U.S.C. § 383

   Pub. L. 96–222, in sections 383, as related to section 382(a) of this title, before and after amendment by Pub. L. 94–455, § 806(f)(2), substituted “section 53(b)” for “section 53(c)”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 96–222, in sections 383, as related to section 382(a) of this title, before and after amendment by Pub. L. 94–455, § 806(f)(2), substituted “section 53(b)” for “section 53(c)”.

   Enacted provision · exact public law section
   (xiii) Section 383 and subsection (a) of section 6411 are 26 USC 383, 6411. each amended by striking out “section 53(c)” and inserting in lieu thereof “section 53(b)”.

7. 1980

   Pub. L. 96–223 § 232(b)(2)(D) · 94 Stat. 229

   Inserted · 26 U.S.C. § 383

   Pub. L. 96–223, § 232(b)(2)(D), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted reference to unused alcohol fuel credits in section catchline and reference to any unused credit of the corporation which could otherwise be carried forward under section 44E(e)(2) in text

   Source evidence

   Code amendment note
   Pub. L. 96–223, § 232(b)(2)(D), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted reference to unused alcohol fuel credits in section catchline and reference to any unused credit of the corporation which could otherwise be carried forward under section 44E(e)(2) in text.

   Enacted provision · exact public law section
   (D) Section 383 (as in effect on the day before the date of 26 USC 1 note. the enactment of the Tax Reform Act of 1976) is amended— (i) by inserting “to any unused credit of the corporation which could otherwise be carried forward under section 44E(e)(2),” after “section 53(c),”, and (ii) by striking out “NEW EMPLOYEE CREDITS” in the section heading and inserting in lieu thereof “NEW EMPLOYEE CREDITS, ALCOHOL FUEL CREDITS”.

8. 1980

   Pub. L. 96–223 § 232(b)(2)(C) · 94 Stat. 229

   1. Amended · 26 U.S.C. § 383

      Pub. L. 96–223, § 232(b)(2)(C), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title

   2. Inserted · 26 U.S.C. § 383

      Pub. L. 96–223, § 232(b)(2)(C), in section 383, as inserted reference to unused alcohol fuel credits in section catchline and reference to any unused credit of the corporation under section 44E(e)(2) in text

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 96–223, § 232(b)(2)(C), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted reference to unused alcohol fuel credits in section catchline and reference to any unused credit of the corporation under section 44E(e)(2) in text.

   Enacted provision · exact public law section
   (C) Section 383 (relating to special limitations on unused investment credits, work incentive credits, new employee credits, foreign taxes, and capital losses), as in effect for taxable years beginning after June 30, 1982, is amended— (i) by inserting “to any unused credit of the corporation under section 44E(e)(2),” after “section 53(c),”, and (ii) by striking out “NEW EMPLOYEE CREDITS” in the section heading and inserting in lieu thereof “NEW EMPLOYEE CREDITS, ALCOHOL FUEL CREDITS”.

9. 1981

   Economic Recovery Tax Act of 1981

   Pub. L. 97–34 § 331(d)(1)(C)(ii) · 95 Stat. 175

   Inserted · 26 U.S.C. § 383

   Pub. L. 97–34, § 331(d)(1)(C)(ii), (D)(ii), in catchlines of sections 383, as related to section 382(a) of this title, before and after amendment by Pub. L. 94–455, § 806(f)(2), inserted reference to employee stock ownership credits

   Source evidence

   Code amendment note
   Pub. L. 97–34, § 331(d)(1)(C)(ii), (D)(ii), in catchlines of sections 383, as related to section 382(a) of this title, before and after amendment by Pub. L. 94–455, § 806(f)(2), inserted reference to employee stock ownership credits.

   Enacted provision · exact public law section
   (ii) by inserting “EMPLOYEE STOCK OWNERSHIP CREDITS,” after “RESEARCH CREDITS,” in the section heading.

10. 1981

    Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 331(d)(1)(D)(i) · 95 Stat. 175

    Inserted · 26 U.S.C. § 383

    Pub. L. 97–34, § 331(d)(1)(D)(i), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted “to any unused credit of the corporation which could otherwise be carried forward under section 44G(b)(2),”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 97–34, § 331(d)(1)(D)(i), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted “to any unused credit of the corporation which could otherwise be carried forward under section 44G(b)(2),”.

    Enacted provision · exact public law section
    (i) by inserting “to any unused credit of the corporation which could otherwise be carried forward under section 44G(b)(2),” after “44F(g)(2),”, and

11. 1981

    Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 331(d)(1)(C)(i) · 95 Stat. 175

    1. Amended · 26 U.S.C. § 383

       Pub. L. 97–34, § 331(d)(1)(C)(i), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title

    2. Inserted · 26 U.S.C. § 383

       Pub. L. 97–34, § 331(d)(1)(C)(i), in section 383, as inserted “to any unused credit of the corporation under section 44G(b)(2),”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 97–34, § 331(d)(1)(C)(i), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted “to any unused credit of the corporation under section 44G(b)(2),”.

    Enacted provision · exact public law section
    (i) by inserting “to any unused credit of the corporation under section 44G(b)(2),” after “44F(g)(2),”, and

12. 1981

    Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 221(b)(1)(C)(ii) · 95 Stat. 175

    Inserted · 26 U.S.C. § 383

    Pub. L. 97–34, § 221(b)(1)(C)(ii), (D)(ii), in catchlines of sections 383, as related to section 382(a) of this title, before and after amendment by Pub. L. 94–455, § 806(f)(2), inserted reference to research credits

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 97–34, § 221(b)(1)(C)(ii), (D)(ii), in catchlines of sections 383, as related to section 382(a) of this title, before and after amendment by Pub. L. 94–455, § 806(f)(2), inserted reference to research credits.

    Enacted provision · exact public law section
    (ii) by inserting “RESEARCH CREDITS,” after “ALCOHOL FUEL CREDITS,” in the section heading.

13. 1981

    Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 221(b)(1)(D)(i) · 95 Stat. 175

    Inserted · 26 U.S.C. § 383

    Pub. L. 97–34, § 221(b)(1)(D)(i), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted “to any unused credit of the corporation which could otherwise be carried forward under section 44F(g)(2),” after “section 44E(e)(2),”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 97–34, § 221(b)(1)(D)(i), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted “to any unused credit of the corporation which could otherwise be carried forward under section 44F(g)(2),” after “section 44E(e)(2),”.

    Enacted provision · exact public law section
    (i) by inserting “to any unused credit of the corporation which could otherwise be carried forward under section 44F(g)(2),” after “44E(e)(2),”, and

14. 1981

    Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 221(b)(1)(C)(i) · 95 Stat. 175

    1. Amended · 26 U.S.C. § 383

       Pub. L. 97–34, § 221(b)(1)(C)(i), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title

    2. Inserted · 26 U.S.C. § 383

       Pub. L. 97–34, § 221(b)(1)(C)(i), in section 383, as inserted “to any unused credit of the corporation under section 44F(g)(2),” after “section 44E(e)(2),”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 97–34, § 221(b)(1)(C)(i), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted “to any unused credit of the corporation under section 44F(g)(2),” after “section 44E(e)(2),”.

    Enacted provision · exact public law section
    (i) by inserting “to any unused credit of the corporation under section 44F(g)(2),” after “44E(e)(2),”, and

15. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(12)(A)(ii) · 98 Stat. 494

    Substituted · 26 U.S.C. § 383

    Pub. L. 98–369, § 474(r)(12)(A)(ii), in catchline of section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, substituted “Special limitations on unused business credits, research credits, foreign taxes, and capital losses” for “Special limitations on carryovers of unused investment credits, work incentive program credits, new employee credits, alcohol fuel credits, research credits, employee stock ownership credits, foreign taxes, and capital losses”

    Source evidence

    Code amendment note
    Pub. L. 98–369, § 474(r)(12)(A)(ii), in catchline of section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, substituted “Special limitations on unused business credits, research credits, foreign taxes, and capital losses” for “Special limitations on carryovers of unused investment credits, work incentive program credits, new employee credits, alcohol fuel credits, research credits, employee stock ownership credits, foreign taxes, and capital losses”.

    Enacted provision · exact public law section
    (ii) by striking out the section heading and inserting in lieu thereof the following: “SEC. 383. SPECIAL LIMITATIONS ON UNUSED BUSINESS CREDITS. RESEARCH CREDITS. FOREIGN TAXES, AND CAPITAL LOSSES.”

16. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(12)(B)(ii) · 98 Stat. 494

    1. Amended · 26 U.S.C. § 383

       Pub. L. 98–369, § 474(r)(12)(B)(ii), in catchline of section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(b) of this title

    2. Substituted · 26 U.S.C. § 383

       Pub. L. 98–369, § 474(r)(12)(B)(ii), in catchline of section 383, as substituted “business credits, research credits” for “investment credits, work incentive program credits”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 98–369, § 474(r)(12)(B)(ii), in catchline of section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(b) of this title, substituted “business credits, research credits” for “investment credits, work incentive program credits”.

    Enacted provision · exact public law section
    (ii) by striking out the section heading and inserting in lieu thereof the following: “SEC. 383. SPECIAL LIMITATIONS ON UNUSED BUSINESS CREDITS. RESEARCH CREDITS. FOREIGN TAXES, AND CAPITAL LOSSES.”

17. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(12)(B)(ii) · 98 Stat. 494

    1. Amended · 26 U.S.C. § 383

       Pub. L. 98–369, § 474(r)(12)(B)(ii), in catchline of section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title

    2. Substituted · 26 U.S.C. § 383

       Pub. L. 98–369, § 474(r)(12)(B)(ii), in catchline of section 383, as substituted “business credits” for “investment credits”

    3. Struck · 26 U.S.C. § 383

       Pub. L. 98–369, § 474(r)(12)(B)(ii), in catchline of section 383, as struck out references to work incentive program credits, new employee credits, alcohol fuel credits, and employee stock ownership credits

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 98–369, § 474(r)(12)(B)(ii), in catchline of section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, substituted “business credits” for “investment credits” and struck out references to work incentive program credits, new employee credits, alcohol fuel credits, and employee stock ownership credits.

    Enacted provision · exact public law section
    (ii) by striking out the section heading and inserting in lieu thereof the following: “SEC. 383. SPECIAL LIMITATIONS ON UNUSED BUSINESS CREDITS. RESEARCH CREDITS. FOREIGN TAXES, AND CAPITAL LOSSES.”

18. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(12)(A)(i) · 98 Stat. 494

    Substituted · 26 U.S.C. § 383

    Pub. L. 98–369, § 474(r)(12)(A)(i), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, substituted “with respect to any unused business credit of the corporation which can otherwise be carried forward under section 39, to any unused credit of the corporation which could otherwise be carried forward under section 30(g)(2), to any excess foreign taxes of the corporation which could otherwise be carried forward under section 904(c), and to any net capital loss of the corporation which can otherwise be carried forward under section 1212” for “with respect to any unused investment credit of the corporation which can otherwise be carried forward under section 46(b), to any unused work incentive program credit of the corporation which can otherwise be carried forward under section 50A(b), to any unused new employee credit of the corporation which could otherwise be carried forward under section 53(b), to any unused credit of the corporation which could otherwise be carried forward under section 44E(e)(2), to any unused credit of the corporation which could otherwise be carried forward under section 44F(g)(2), to any unused credit of the corporation which could otherwise be carried forward under section 44G(b)(2), to any excess foreign taxes of the corporation which can otherwise be carried forward under section 904(c), and to any net capital loss of the corporation which can otherwise be carried forward under section 1212”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 98–369, § 474(r)(12)(A)(i), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, substituted “with respect to any unused business credit of the corporation which can otherwise be carried forward under section 39, to any unused credit of the corporation which could otherwise be carried forward under section 30(g)(2), to any excess foreign taxes of the corporation which could otherwise be carried forward under section 904(c), and to any net capital loss of the corporation which can otherwise be carried forward under section 1212” for “with respect to any unused investment credit of the corporation which can otherwise be carried forward under section 46(b), to any unused work incentive program credit of the corporation which can otherwise be carried forward under section 50A(b), to any unused new employee credit of the corporation which could otherwise be carried forward under section 53(b), to any unused credit of the corporation which could otherwise be carried forward under section 44E(e)(2), to any unused credit of the corporation which could otherwise be carried forward under section 44F(g)(2), to any unused credit of the corporation which could otherwise be carried forward under section 44G(b)(2), to any excess foreign taxes of the corporation which can otherwise be carried forward under section 904(c), and to any net capital loss of the corporation which can otherwise be carried forward under section 1212”.

    Enacted provision · exact public law section
    (i) by striking out “with respect to any unused investment credit” and all that follows and inserting in lieu thereof the following: “with respect to any unused business credit of the corporation which can otherwise be carried forward under section 39, to any unused credit of the corporation which could otherwise Ante, p. 828. be carried forward under section 30(g)(2), to any excess foreign taxes of the corporation which could otherwise be Ante, p. 826. carried forward under section 904(c), and to any net capital loss of the corporation which can otherwise be carried forward under section 1212.”, and

19. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(12)(B)(i) · 98 Stat. 494

    1. Amended · 26 U.S.C. § 383

       Pub. L. 98–369, § 474(r)(12)(B)(i), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(b) of this title

    2. Substituted · 26 U.S.C. § 383

       Pub. L. 98–369, § 474(r)(12)(B)(i), in section 383, as substituted “with respect to any unused business credit of the corporation under section 39, to any unused credit of the corporation under section 30(g)(2), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212” for “with respect to any unused investment credit of the corporation under section 46(b), to any unused work incentive program credit of the corporation under section 50A(b), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 98–369, § 474(r)(12)(B)(i), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(b) of this title, substituted “with respect to any unused business credit of the corporation under section 39, to any unused credit of the corporation under section 30(g)(2), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212” for “with respect to any unused investment credit of the corporation under section 46(b), to any unused work incentive program credit of the corporation under section 50A(b), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212”.

    Enacted provision · exact public law section
    (i) by striking out “with respect to any unused investment credit” and all that follows and inserting in lieu thereof the following: “with respect to any unused business credit of the corporation under section 39, to any unused credit of the corporation under section 30(g)(2), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212.”, and

20. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(12)(B)(i) · 98 Stat. 494

    1. Amended · 26 U.S.C. § 383

       Pub. L. 98–369, § 474(r)(12)(B)(i), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title

    2. Substituted · 26 U.S.C. § 383

       Pub. L. 98–369, § 474(r)(12)(B)(i), in section 383, as substituted “with respect to any unused business credit of the corporation under section 39, to any unused credit of the corporation under section 30(g)(2), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212” for “with respect to any unused investment credit of the corporation under section 46(b), to any unused work incentive program credit of the corporation under section 50A(b), to any unused new employee credit of the corporation under section 53(b), to any unused credit of the corporation under section 44E(e)(2), to any unused credit of the corporation under section 44F(g)(2), to any unused credit of the corporation under section 44G(b)(2), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 98–369, § 474(r)(12)(B)(i), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, substituted “with respect to any unused business credit of the corporation under section 39, to any unused credit of the corporation under section 30(g)(2), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212” for “with respect to any unused investment credit of the corporation under section 46(b), to any unused work incentive program credit of the corporation under section 50A(b), to any unused new employee credit of the corporation under section 53(b), to any unused credit of the corporation under section 44E(e)(2), to any unused credit of the corporation under section 44F(g)(2), to any unused credit of the corporation under section 44G(b)(2), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212”.

    Enacted provision · exact public law section
    (i) by striking out “with respect to any unused investment credit” and all that follows and inserting in lieu thereof the following: “with respect to any unused business credit of the corporation under section 39, to any unused credit of the corporation under section 30(g)(2), to any excess foreign taxes of the corporation under section 904(c), and to any net capital loss of the corporation under section 1212.”, and

21. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 621(b) · 100 Stat. 2085

    Amended · 26 U.S.C. § 383

    Pub. L. 99–514, § 621(b), amended section generally. Prior to amendment, section read as follows: “If—

    Source evidence

    Code amendment note
    Pub. L. 99–514, § 621(b), amended section generally. Prior to amendment, section read as follows: “If—

    “(1) the ownership and business of a corporation are changed in the manner described in section 382(a)(1), or “(2) in the case of a reorganization specified in paragraph (2) of section 381(a), there is a change in ownership described in section 382(b)(1)(B), then the limitations provided in section 382 in such cases with respect to the carryover of net operating losses shall apply in the same manner, as provided under regulations prescribed by the Secretary, with respect to any unused business credit of the corporation which can otherwise be carried forward under section 39, to any unused credit of the corporation which could otherwise be carried forward under section 30(g)(2), to any excess foreign taxes of the corporation which could otherwise be carried forward under section 904(c), and to any net capital loss of the corporation which can otherwise be carried forward under section 1212.”

    Enacted provision · exact public law section
    (b) Amendment of Section 383.— Section 383 (relating to special limitations on unused investment credits, etc.) is amended to read as follows: “SEC. 383. SPECIAL LIMITATIONS ON CERTAIN EXCESS CREDITS. ETC. “(a) Excess Credits.— “(1) In general.— Under regulations, if an ownership change occurs with respect to a corporation, the amount of any excess credit for any taxable year which may be used in any post-change year shall be limited to an amount determined on the basis of the tax liability which is attributable to so much of the taxable income as does not exceed the section 382 limitation for such post-change year to the extent available after the application of section 382 and subsections (b) and (c) of this section. “(2) Excess credit.— For purposes of paragraph (1), the term ‘excess credit’ means— “(A) any unused general business credit of the corporation under section 39, and “(B) any unused minimum tax credit of the corporation under section 53. “(b) Limitation on Net Capital Loss.— If an ownership change occurs with respect to a corporation, the amount of any net capital loss under section 1212 for any taxable year before the 1st post-change year which may be used in any post-change year shall be limited under regulations which shall be based on the principles applicable under section 382. Such regulations shall provide that any such net capital loss used in a post-change year shall reduce the section 382 limitation which is applied to prechange losses under section 382 for such year. “(c) Foreign Tax Credits.— If an ownership change occurs with respect to a corporation, the amount of any excess foreign taxes under section 904(c) for any taxable year before the 1st post-change taxable year shall be limited under regulations which shall be consistent with purposes of this section and section 382. “(d) Pro Ration Rules for Year Which Includes Change.— For purposes of this section, rules similar to the rules of subsections (b)(3) and (d)(1)(B) of section 382 shall apply. “(e) Definitions.— Terms used in this section shall have the same respective meanings as when used in section 382, except that appropriate adjustments shall be made to take into account that the limitations of this section apply to credits and net capital losses.”

    Effective date note
    Amendment by section 621(b) of Pub. L. 99–514 applicable to any ownership change after Dec. 31, 1986, except as otherwise provided, see section 621(f) of Pub. L. 99–514, as amended, set out as a note under section 382 of this title. Repeal of amendment by section 806(f)(1) of Pub. L. 94–455 effective Jan. 1, 1986, with certain exceptions, see section 621(f)(2) of Pub. L. 99–514, set out as a note under section 382 of this title.

22. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 621(e)(1) · 100 Stat. 2085

    Repealed · 26 U.S.C. § 383

    Pub. L. 99–514, § 621(e)(1), repealed amendment by Pub. L. 94–455, § 806(f)(2). See 1976 Amendment note below

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 99–514, § 621(e)(1), repealed amendment by Pub. L. 94–455, § 806(f)(2). See 1976 Amendment note below.

    Enacted provision · exact public law section
    (1) Subsections (e) and (f) of section 806 of the Tax Reform Act of 1976 (including the amendment treated as part of such subsections under section 59(b) of the Tax Reform Act of 1984) are hereby repealed.

    Effective date note
    Amendment by section 621(b) of Pub. L. 99–514 applicable to any ownership change after Dec. 31, 1986, except as otherwise provided, see section 621(f) of Pub. L. 99–514, as amended, set out as a note under section 382 of this title. Repeal of amendment by section 806(f)(1) of Pub. L. 94–455 effective Jan. 1, 1986, with certain exceptions, see section 621(f)(2) of Pub. L. 99–514, set out as a note under section 382 of this title.

32 of 32 references resolved to an enrolled provision