Page:United States Statutes at Large Volume 90 Part 2.djvu/114

 90 STAT. 1582 26 USC 46.

PUBLIC LAW 94-455—OCT. 4, 1976 (2) Subsection (b) of section 46 (relating to carryback and carryover of unused credits) is amended to read as follows: "(b)

CARRYBACK AND CARRYOVER OF U N U S E D CREDITS.—

" (1) IN GENERAL.—If the sum of the amount of the investment credit carryovers to the taxable year under subsection (a)(1) (A) plus the amount determined under subsection (a)(1)(B) for the taxable year exceeds the amount of the limitation imposed by subsection (a)(3) for such taxable year (hereinafter i n t h i s subsection referred to as the 'unused credit year '), such excess attributable to the amount determined under subsection (a)(1) (B) shall be— " (A) an investment credit carryback to each of the 3 taxable years preceding the unused credit year, and " (B) a n investment credit carryover to each of the 7 taxable years following the unused credit year, and, subject to the limitations imposed by paragraph s (2) and (3), shall be taken into account under the provisions of subsection (a)(1) in the manner provided in such subsection. The entire amount of the unused credit for an unused credit year shall be carried to the earliest of the 10 taxable years to which (by reason of subparagraphs (A) and (B)) such credit may be carried and then to each of the other 9 taxable years to the extent, because of the limitations imposed by paragraph s (2) and (3), such unused credit may not be taken into account under subsection (a)(1) for a prior taxable year to which such unused credit may be carried. I n the case of an unused credit for an unused credit year ending before January 1, 1971, which is an investment credit carryover to a taxable year beginning after December 31, 1970 (determined without regard to this sentence), this paragraph shall be applied— " (C) by substituting '10 taxable years' for '7 taxable years' in subparagraph (B), and by substituting '13 taxable years' for '10 taxable years', and '12 taxable years' for '9 taxable years' in the preceding sentence, and " (D) by carrying such an investment credit carryover to a later taxable year (than the taxable year to which it would, b u t for this subparagraph, be carried) to which it may be carried if, because of the amendments made by section 802 (b)(2) of the T a x Reform Act of 1976, carrying such carryover to the taxable year to which i t would, b u t for this subparagraph, be carried would cause a portion of an unused credit from an unused credit year ending after December 31, 1970 to expire. " (2) L I M I T A T I O N ON CARRYBACKS.—The a m o u n t of the unused

credit which may be taken into account under subsection (a)(1) for any preceding taxable year shall not exceed the amount by which the limitation imposed by subsection (a)(3) for such taxable year exceeds the sum of— " (A) the amounts determined under subparagraphs (A) and (B) of subsection (a)(1) for such taxable year, plus " (B) the amounts which (by reason of this subsection) are carried back to such taxable year and are attributable to taxable years preceding the unused credit year. " (3) LIMITATION ON CARRYOVERS.—The amount of the unused credit which may be taken into account under subsection (a)(1)(A) for any succeeding taxable year shall not exceed the

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