Page:United States Statutes at Large Volume 98 Part 1.djvu/786

 98 STAT. 738

PUBLIC LAW 98-369—JULY 18, 1984 yjii mi; fioftfifiil K ' T Tfjfc ,

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"(i) the average equity base of the company for the taxable year, over "(ii) the amount which would be its average equity base if its equity percentage equaled the following percentage: "For taxable years beginning in: 1984 1985 or 1986 1987 or 1988

The percentage is: 14.5 14 13.5

In no case shall the excess equity base for any taxable year be greater than the excess equity base for the company's first taxable year beginning in 1984. "(B) APPLICABLE PERCENTAGE.—The term 'applicable percentage' means the percentage determined in accordance with the following table: "For taxable years beginning in: 1984 1985 1986 1987 1988 1989 or thereafter

The applicable percentage is: 100 80 60 40 20 0.

"(C) HIGH SURPLUS MUTUAL LIFE INSURANCE COMPANY.—

The term 'high surplus mutual life insurance company' means any mutual life insurance company if, for the taxable year beginning in 1984, its equity percentage exceeded 14.5 percent. "(D) EQUITY PERCENTAGE.—The term 'equity percentage' means, with respect to any mutual life insurance company, the percentage which— "(i) the average equity base of such company (determined under this section without regard to this subsection) for a taxable year bears to "(ii) the average of— "(I) the assets of such company as of the close of the preceding taxable year, and "(II) the assets of such company as of the close of the taxable year. For purposes of the preceding sentence, the assets of a company shall include all assets taken into account under this section in determining its equity base (after applying the principles of subsection (h)). 26 USC 810.

"SEC. 810. 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 of 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.—The loss from operations for any taxable year (hereinafter in this section referred to as the 'loss year') shall be— "(A) an operations loss carryback to each of the 3 taxable years preceding the loss year,, „ _. _ ^. _

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