Page:United States Statutes at Large Volume 100 Part 3.djvu/362

 100 STAT. 2170

PUBLIC LAW 99-514—OCT. 22, 1986 (B) For purposes of determining whether an automobile manufacturing facility (including equipment and incidental appurtenances) is transition property within the meaning of section 49(e), property with respect to which the Board of Directors of an automobile manufacturer formally approved the plan for the project on January 7, 1985 shall be treated as transition property, but only with respect to $70,000,000 of regular investment tax credits.

SEC. 212. EFFECTIVE 15-YEAR CARRYBACK FORWARDS OF STEEL COMPANIES.

OF

EXISTING

CARRY-

(a) GENERAL RULE.—If a qualified corporation makes an election under this section for its 1st taxable year beginning after December 31, 1986, with respect to any portion of its existing carryforwards, the amount determined under subsectionflt>)shall be treated as a payment against the tax imposed by chapter 1 of the Internal Revenue Code of 1986 made by such corporation on the last day prescribed by law (without regard to extensions) for filing its return of tax under chapter 1 of such Code for such 1st taxable year. (b) AMOUNT.—For purposes of subsection (a), the amount determined under this subsection shall be the lesser of— (1) 50 percent of the portion of the corporation's existing carryforwards to which the election under subsection (a) applies, or (2) the corporation's net tax liability for the carryback period. (c) CORPORATION MAKING ELECTION MAY NOT USE SAME AMOUNTS UNDER SECTION 38.—In the case of a qualified corporation which

makes an election under subsection (a), the portion of such corporation's existing carryforwards to which such an election applies shall not be taken into account under section 38 of the Internal Revenue Code of 1986 for any taxable year beginning after December 31, 1986. (d) NET TAX LIABILITY FOR CARRYBACK PERIOD.—For purposes of this section— (1) IN GENERAL.—A corporation's net tax liability for the carryback period is the aggregate of such corporation's net tax liability for taxable years in the carryback period. (2) NET TAX LIABILITY.—The term "net tax liability" means, with respect to any taxable year, the amount of the tax imposed by chapter 1 of the Internal Revenue Code of 1954 for such taxable year, reduced by the sum of the credits allowable under part IV of subchapter A of such chapter 1 (other than section 34 thereof). For purposes of the preceding sentence, any tax treated as not imposed by chapter 1 of such Code under section 26(b)(2) of such Code shall not be treated as tax imposed by such chapter 1. (3) CARRYBACK PERIOD.—The term "carryback period" means the period— (A) which begins with the corporation's 15th taxable year preceding the 1st taxable year from which there is an unused credit included in such corporation's existing carryforwards (but in no event shall such period begin before the corporation's 1st taxable year ending after December 31, 1961), and (B) which ends with the corporation's last taxable year beginning before January 1, 1986.

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