Page:United States Statutes at Large Volume 102 Part 4.djvu/688

 102 STAT. 3658

PUBLIC LAW 100-647—NOV. 10, 1988 (ii) The item relating to section 597 in part II of subchapter H of chapter 1 of the 1986 Code (as so in effect) is amended by inserting "or FDIC" after "FSLIC". (E) The amendments made by this paragraph shall apply to any transfer— (i) after the date of the enactment of this Act, and before January 1, 1990, unless such transfer is pursuant to an acquisition occurring on or before such date of enactment, and (ii) after December 31, 1989, if such transfer is pursuant to an acquisition occurring after such date of enactment and before January 1, 1990.

26 USC 597 note.

(c) CERTAIN TAX ATTRIBUTES REDUCED BY 50 PERCENT OF FINANCIAL ASSISTANCE OF FSLIC AND FDIC; APPLICATION OF SECTION

265.— (1) REDUCTION IN TAX ATTRIBUTES.—Section 597 of the

1986

(Dode is amended by adding at the end thereof the following new subsection: "(c) REDUCTION OF TAX ATTRIBUTES BY 50 PERCENT OF AMOUNTS EXCLUDABLE UNDER SUBSECTION (a).—

"(1) IN GENERAL.—50 percent of any amount excludable under subsection (a) for any taxable year shall be applied to reduce the tax attributes of the taxpayer as provided in paragraph (2). "(2)

TAX ATTRIBUTES REDUCED; ORDER OF REDUCTION.—The

reduction referred to in paragraph (1) shall be made in the following tax attributes in the following order: "(A) NOL.—Any pre-assistance net operating loss for the taxable year. "(B) INTEREST.—The amount of any interest with respect to which a deduction is allowable for the taxable year. "(C) BUILT-IN PORTFOUO LOSSES.—Recognized built-in portfolio losses for the taxable year. "(3) PRE-ASSISTANCE NET OPERATING LOSS.—For purposes of paragraph (2)(A)— "(A) IN GENERAL.—The pre-assistance net operating loss shall be determined in the same manner as a pre-change loss under section 382(d), except that— "(i) the applicable financial institution shall be treated as the old loss corporation, and "(ii) the determination date shall be substituted for the change date. "(B) ORDERING RULE.—The reduction under paragraph (2)(A) shall be made in the carryovers in the order in which carryovers are taken into account under this chapter for the taxable year. "(4) RECOGNIZED BUILT-IN PORTFOUO LOSSES.—For purposes of

paragraph (2)(C), recognized built-in portfolio losses shall be determined in the same manner as recognized built-in losses under section 382(h), except that— "(A) the only assets taken into account shall be— "(i) the loan portfolio, "(ii) marketable securities (within the meaning of section 453(f)(2)), and "(iii) property described in section 595(a), "(B) the rules of clauses (i) and (ii) of paragraph (3)(A) shall apply,

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