§ 383 Special limitations on certain excess credits, etc.
(a) Excess credits
(1) In general
Under regulations, if an ownership change occurs with respect to a corporation, the amount of any excess credit for any taxable year which may be used in any post-change year shall be limited to an amount determined on the basis of the tax liability which is attributable to so much of the taxable income as does not exceed the section limitation for such post-change year to the extent available after the application of section and subsections (b) and (c) of this section.
(b) Limitation on net capital loss
If an ownership change occurs with respect to a corporation, the amount of any net capital loss under section for any taxable year before the 1st post-change year which may be used in any post-change year shall be limited under regulations which shall be based on the principles applicable under section . Such regulations shall provide that any such net capital loss used in a post-change year shall reduce the section limitation which is applied to pre-change losses under section for such year.
(c) Foreign tax credits
If an ownership change occurs with respect to a corporation, the amount of any excess foreign taxes under section for any taxable year before the 1st post-change taxable year shall be limited under regulations which shall be consistent with purposes of this section and section .
(d) Pro ration rules for year which includes change
For purposes of this section, rules similar to the rules of subsections (b)(3) and (d)(1)(B) of section shall apply.
(e) Definitions
Terms used in this section shall have the same respective meanings as when used in section , except that appropriate adjustments shall be made to take into account that the limitations of this section apply to credits and net capital losses.
(Added Pub. L. 92–178, title III, § 302(a), Dec. 10, 1971, 85 Stat. 521; amended Pub. L. 94–455, title VIII, § 806(f)(2), title X, § 1031(b)(5), title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1605, 1623, 1834; Pub. L. 95–30, title II, § 202(d)(3)(B), (C), May 23, 1977, 91 Stat. 148; Pub. L. 96–222, title I, § 103(a)(6)(G)(xiii), Apr. 1, 1980, 94 Stat. 211; Pub. L. 96–223, title II, § 232(b)(2)(C), (D), Apr. 2, 1980, 94 Stat. 276; Pub. L. 97–34, title II, § 221(b)(1)(C), (D), title III, § 331(d)(1)(C), (D), Aug. 13, 1981, 95 Stat. 246, 294; Pub. L. 98–369, div. A, title IV, § 474(r)(12)(A), (B), July 18, 1984, 98 Stat. 841; Pub. L. 99–514, title VI, § 621(b), (e)(1), Oct. 22, 1986, 100 Stat. 2265, 2266.)
Operative text only. Editorial notes, amendment history, and effective dates: official OLRC text of § 383