Page:United States Statutes at Large Volume 100 Part 3.djvu/364

 100 STAT. 2172

PUBLIC LAW 99-514—OCT. 22, 1986 (determined without regard to the limitations of section 38(c) and any reduction under section 49 of the Internal Revenue Code of 1986), and (B) are attributable to the amount of the regular investment credit determined under section 46(a)(1) of such Code (relating to regular percentage), or any corresponding provision of prior law, determined on the basis that the regular investment credit was used first.

SEC. 213. EFFECTIVE 15-YEAR CARRYBACK OF FORWARDS OF QUALIFIED FARMERS.

EXISTING

CARRY-

(a) GENERAL RULE.—If a taxpayer who is a qualified farmer 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 subsection (b) shall be treated as a payment against the tax imposed by chapter 1 of the Internal Revenue Code of 1986 made by such taxpayer 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 equal to the smallest of— (1) 50 percent of the portion of the taxpayer's existing carryforwards to which the election under subsection (a) applies, (2) the taxpayer's net tax liability for the carryback period (within the meaning of section 212(d) of this Act), or (3) $750. (c) TAXPAYER MAKING ELECTION MAY NOT U S E SAME AMOUNTS UNDER SECTION 38.—In the case of a qualified farmer who makes an

election under subsection (a), the portion of such farmer'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) No RECOMPUTATION OF MINIMUM TAX, ETC.—Nothing in this section shall be construed to affect— (1) the amount of the tax imposed by section 56 of the Internal Revenue Code of 1954, or (2) the amount of any credit allowable under such Code, for any taxable year in the carryback period (within the meaning of section 212(d)(3) of this Act). (e) DEFINITIONS AND SPECIAL RULES.—For purposes of this section— (1) QUALIFIED FARMER.—The term "qualified farmer" means any taxpayer who, during the 3-taxable year period preceding the taxable year for which an election is made under subsection (a), derived 50 percent or more of the taxpayer's gross income from the trade or business of farming. (2) EXISTING CARRYFORWARD.—The term "existing carryforward" means the aggregate of the amounts which— (A) are unused business credit carryforwards to the taxpayer's 1st taxable year beginning after December 31, 1986 (determined without regard to the limitations of section 38(c) of the Internal Revenue Code of 1986), and (B) are attributable to the amount of the investment credit determined under section 46(a) of such Code (or any corresponding provision of prior law) with respect to section 38 property which was used by the taxpayer in the trade or

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