Page:United States Statutes at Large Volume 81.djvu/766

 732

Effective date.

Operating loss carrybacks. 76 Stat. 889; 78 Stat. 47.

PUBLIC LAW 90-225-DEC. 27, 1967

[81 STAT.

ating loss carryback from a subsequent taxable year, such increase shall not affect the computation of interest under this section for the period ending with the last day of such subsequent taxable year". (f) Section 6611(f)(2) of such Code (relating to interest on overpayments) is amended by inserting before the period at the end thereof the following: ", or, with respect to any portion of an investment credit carryback from a taxable year attributable to a net operating loss carryback from a subsequent taxable year, such overpayment shall be deemed not to have been made prior to the close of such subsequent taxable year". (g) The amendments made by this section shall apply with respect to investment credit carrybacks attributable to net operating loss carrybacks from taxable years ending after July 31, 1967. SEC. 3. (a) Section 172(b) of the Internal Revenue Code of 1954 (relating to net operating loss carrybacks and carryovers) is amended— (1) by striking out "subparagraph (D) " in paragraph (1)(A) (i) and inserting in lieu thereof "subparagraphs (D) and (E) "; (2) by striking out "subparagraphs (C) and (D) " in paragraph (1)(B) and inserting in lieu thereof "subparagraphs (C), (D),and(E)"; (3) by adding at the end of paragraph (1) the following new subparagraph: " (E) I n the case of a taxpayer which is a domestic corporation qualifying under paragraph (3)(E), a net operating loss for any taxable year ending after December 31, 1966, and prior to January 1, 1969, shall be a net operating loss carryback to each of the 5 taxable years preceding the taxable year of such loss and shall be a net operating loss carryover to each of the 3 taxable years following the taxable year of such loss."; and (4) by adding at the end of paragraph (3) the following new subparagraphs: " (E) Paragraph (1)(E) shall apply only if— " (i) the amount of the taxpayer's net operating loss for the taxable year exceeds the sum of the taxable income (computed as provided in paragraph (2)) for each of the 3 preceding taxable years of the taxpayer, "(ii) the amount of the taxpayer's net operating loss for the taxable year, increased by the amount of the taxpayer's net operating loss for the preceding taxable year or decreased by the amount of the taxpayer's taxable income for such preceding year, exceeds 15 percent of the sum of the money and other property (in an amount

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