Page:United States Statutes at Large Volume 98 Part 1.djvu/655

 PUBLIC LAW 98-369—JULY 18, 1984 "(A) the net operating loss for such taxable year, reduced by any portion thereof attributable to— "(i) a foreign expropriation loss, or "(ii) a product liability loss, or "(B) the sum of the amounts allowable as a deduction under this chapter (other than any deduction described in 3r subsection (j)(1)(B)) which— "(i) is taken into account in computing the net operating loss for such taxable year, and "(ii) is for an amount incurred with respect to a liability which arises under a Federal or State law or out of any tort of the taxpayer and— "(I) in the case of a liability arising out of a Federal or State law, the act (or failure to act) '• ate 5 aiik'o. giving rise to such liability occurs at least 3 years before the beginning of such taxable year, or "(II) in the case of a liability arising out of a tort, such liability arises out of a series of actions (or failures to act) over an extended period of time a substantial portion of which occurs at least 3 years before the beginning of such taxable year. A liability shall not be taken into account under the preceding sentence unless the taxpayer used an accrual method of accounting throughout the period or periods during which the acts or failures to act giving rise to such liability occurred. "(2)
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SPECIAL RULE FOR NUCLEAR POWERPLANTS.—Except as

98 STAT. 607

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provided in regulations prescribed by the Secretary, that portion of a deferred statutory or tort liability loss which is attributable to amounts incurred in the decommissioning of a nuclear powerplant (or any unit thereof) may, for purposes of subsection (b)(l)(K), be carried back to each of the taxable years during the period— "(A) beginning with the taxable year in which such plant (or unit thereof) was placed in service, and "(B) ending with the taxable year preceding the loss year. "(3) COORDINATION WITH SUBSECTION (b)(2).—In applying paragraph (2) of subsection (b), a deferred statutory or tort liability loss shall be treated in a manner similar to the manner in which a foreign expropriation loss is treated. "(4) No CARRYBACK TO TAXABLE YEARS BEGINNING BEFORE JANUARY 1, 1984.—No deferred statutory or tort liability loss may be carried back to a taxable year beginning before January 1, 1984, unless such loss may be carried back to such year without regard to subsection (b)(l)(K)." (3) CONFORMING AMENDMENTS.—

(A) Clause (i) of section 172(b)(1)(A) is amended by striking out "and (J)" and inserting in lieu thereof "(J), and (K)". (B) Subsections (h) and (j) of section 172 are each amended by striking out "subsection (b)" in the matter preceding paragraph (1) and inserting in lieu thereof "this section".

26 USC 172

(e) (CONFORMING AMENDMENT.—Paragraph (4) of section 461(f) (re-

26 USC 461

lating to contested liabilities) is amended by inserting "determined after application of subsection (h)" after "taxable year)". (f) INCLUSION IN INCOME OF NUCLEAR DECOMMISSIONING C!OSTS INCLUDED IN THE TAXPAYER'S RATE BASE.—

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