Page:United States Statutes at Large Volume 124.djvu/102

 124 STAT. 76 PUBLIC LAW 111–147—MAR. 18, 2010 (c) LIMITATION ON CARRYBACKS.—No portion of the unused business credit under section 38 of the Internal Revenue Code of 1986 for any taxable year which is attributable to the increase in the current year business credit under this section may be carried to a taxable year beginning before the date of the enactment of this section. (d) TREATMENT OF POSSESSIONS.— (1) PAYMENTS TO POSSESSIONS.— (A) MIRROR CODE POSSESSIONS.—The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the application of this section (other than this subsection). Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respec- tive possession. (B) OTHER POSSESSIONS.—The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the application of this section (other than this subsection) if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such posses- sion. (2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED STATES INCOME TAXES.—No increase in the credit determined under section 38(b) of the Internal Revenue Code of 1986 against United States income taxes for any taxable year deter- mined under subsection (a) shall be taken into account with respect to any person— (A) to whom a credit is allowed against taxes imposed by the possession by reason of this section for such taxable year, or (B) who is eligible for a payment under a plan described in paragraph (1)(B) with respect to such taxable year. (3) DEFINITIONS AND SPECIAL RULES.— (A) POSSESSION OF THE UNITED STATES.—For purposes of this subsection, the term ‘‘possession of the United States’’ includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. (B) MIRROR CODE TAX SYSTEM.—For purposes of this subsection, the term ‘‘mirror code tax system’’ means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (C) TREATMENT OF PAYMENTS.—For purposes of section 1324(b)(2) of title 31, United States Code, rules similar to the rules of section 1001(b)(3)(C) of the American Recovery and Reinvestment Tax Act of 2009 shall apply. Applicability. Plans. Estimate. Determination.