Page:United States Statutes at Large Volume 100 Part 3.djvu/517

 PUBLIC LAW 9 9 - 5 1 4 - O C T. 22, 1986

100 STAT. 2325

"(C) SPECIAL RULE FOR PERSONAL HOLDING COMPANIES.—In

the case of circulation expenditures described in section 173, the adjustments provided in this paragraph shall apply also to a personal holding company (as defined in section 542). "(c) ADJUSTMENTS APPLICABLE TO CORPORATIONS.—In determining

the amount of the alternative minimum taxable income of a corporation, the following treatment shall apply: "(1) ADJUSTMENT FOR BOOK INCOME OR ADJUSTED EARNINGS AND PROFITS.— "(A) BOOK INCOME ADJUSTMENT.—For taxable years begin-

ning in 1987, 1988, and 1989, alternative minimum taxable income shall be adjusted as provided under subsection (f). "(B) ADJUSTED EARNINGS AND PROFITS.—For taxable years beginning after 1989, alternative minimum taxable income shall be adjusted as provided under subsection (g). "(2) MERCHANT MARINE CAPITAL CONSTRUCTION FUNDS.—In the

case of a capital construction fund established under section 607 of the Merchant Marine Act, 1936 (46 U.S.C. 1177)— "(A) subparagraphs (A), (B), and (C) of section 7518(c)(1) (and the corresponding provisions of such section 607) shall not apply to— "(i) any amount deposited in such fund after December 31, 1986, or "(ii) any earnings (including gains and losses) after December 31, 1986, on amounts in such fund, and "(B) no reduction in basis shall be made under section 7518(f) (or the corresponding provisions of such section 607) with respect to the withdrawal from the fund of any amount to which subparagraph (A) applies. For purposes of this paragraph, any withdrawal of deposits or earnings from the fund shall be treated as allocable first to deposits made before (and earnings received or accrued before) January 1, 1987. "(3) SPECIAL DEDUCTION FOR CERTAIN ORGANIZATIONS NOT AL-

LOWED.—The deduction determined under section 8330t)) shall not be allowed. "(d) ALTERNATIVE TAX N E T OPERATING LOSS DEDUCTION DEFINED.—

"(1) IN GENERAL.—For purposes of subsection (a)(4), the term 'alternative tax net operating loss deduction' means the net operating loss deduction allowable for the taxable year under section 172, except that— "(A) the amount of such deduction shall not exceed 90 percent of alternative minimum taxable income determined without regard to such deduction, and "(B) in determining the amount of such deduction— "(i) the net operating loss (within the meaning of section 172(c)) for any loss year shall be adjusted as provided in paragraph (2), and "(ii) in the case of taxable years beginning after December 31, 1986, section 172(b)(2) shall be applied by substituting '90 percent of alternative minimum taxable income determined without regard to the alternative tax net operating loss deduction' for 'taxable income' each place it appears. "(2) ADJUSTMENTS TO NET OPERATING LOSS COMPUTATION.—

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