Page:United States Statutes at Large Volume 73.djvu/165

 78 S T A T. ]

PUBLIC LAW 8 6 - 6 9 - J U N E 26, 1969

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year following the taxable year, over (ii) such amounts held at the end of Uie preceding taxable year, or " (B) decreased by the excess of (i) such amounts held at the end of the preceaing taxable year, over (ii) such amounts held at the end of the taxable year. For purposes of subparagraphs (A) and (B), there shall be included as amounts held at the end of any taxable year amounts set aside, before the 16th day of the third month of the year following such taxable year (or, in the case of a mutual savings bank subject to the tax imposed by section 594, before the 16th ^6 USC S94. day of the fourth month of the year following such taxable year), for payment during the year following such taxable year. " (2) CERTAIN AMOUNTS TO BE TREATED AS NET DECREASES.—If

the amount determined under paragraph (1)(B) exceeds the dividends to policyholders paid during the taxable year, the amount of such excess shall be a net decrease referred to in section 809(c)(2). "SEC. 812. OPERATIONS LOSS DEDUCTION. " (a) DEDUCTION ALLOWED.—There shall be allowed as a deduction for the taxable year an amount equal to the aggregate of— "(1) the operations loss carryovers to such year, plus "(2) the operations loss carrybacks to such year. For purposes 6t this part, the term 'operations loss deduction' means the deduction allowed by this subsection. "(b) OPERATIONS Loss CARRYBACKS AND CARRYOVERS,— " (1) YEARS TO WHICH LOSS MAY BE CARRIED.—

" (A) IN GENERAL.—The loss from Operations for any taxable year (hereinafter in this section referred to as the 'loss year) beginning after December 31, 1954, shall be— " (i) an operations loss carryback to each of the 3 taxable years preceding the loss year, "(li) an operations loss carryover to each of the 5 taxable years following the loss year, and "(iii) subject to subsection (e), if the life insurance company is a new company for the loss year, an operations loss carryover to each of the 3 taxable years following the 5 taxable years described in clause (ii). " (B) SPECIAL TRANSITIONAL RULES FOR CARRYBACKS.—A loss from operations for any taxable year beginning before January 1, 1958, shall not be an operations loss carryback to any taxable year beginning before January 1, 1955. A loss from operations for any taxable year beginning after December 31, 1957, shall not be an operations loss carryback to any taxable year beginning before January 1, 1958. " (C) APPLICATION FOR YEARS PRIOR TO i O 5 8.—For purposes

of this section, this part (as in effect for 1968) and section 381(c) (22) shall be treated as applying to all taxable years beginning after December 31, 1954, and before January 1, 1968. " (2) AMOUNT OF CARRYBACKS AND CARRYOVERS.—The entire

amount of the loss from operations for any loss year shall be carried to the earliest of the taxable years to which (by reason of paragraph (1)) such loss may be carried. The portion of such loss which shall pe carried to each of the other taxable years shall be the excess (if any) of the aniount of such loss over the sum of the offsets (as defined in subsection (d)) for each of the prior taxable years to which such loss may be carried.

Poat, p. 139.

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