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TITLE 26-INTERNAL REVENUE CODE "(2) For purposes of applying sections 382(a) and 383 (as it relates to section 382(a)) of the Internal Rev- enue Code of 1954 [subsec. (a) of this section and sec- tion 383 of this title], as amended by subsections (e) and (f), the amendments made by subsections (e) and (f) [amending this section and sections 368(c) and 383 of this title] shall take effect for taxable years begin- ning after June 30, 1978, except that the beginning of the taxable years specified in clause (ii) of section 382(a)(1)(B) of such Code Esubsec. (a)(1)(B) of this sec- tion], as so amended, shall be considered to be the later of: "(A) the beginning of such taxable years, or "(B) January 1, 1978. "(3) Sections 382(b) and 383 (as it relates to section 382(b)) of the Internal Revenue Code of 1954 (subsec. (b) of this section and section 383 of this title], as amended by subsections (e) and (f), shall apply (and such sections as in effect prior to such amendment shall not apply) to reorganizations pursuant to a plan of reorganization adopted by one or more of the par- ties thereto on or after January 1, 1978. For purposes of the preceding sentence, a corporation shall be con- sidered to have adopted a plan of reorganization on the date on which a resolution of the board of direc- tors is passed adopting the plan or recommending its adoption to the shareholders, or on the date on which the shareholders approve the plan of reorganization, whichever is earlier." EFFECTIVE DATE OF 1964 AMENDMENT Amendment by section 4 of Pub. L. 88-554 effective Aug. 31, 1964, except that for purposes of sections 302 and 304 of this title, such amendment shall not apply to distributions in payment for stock acquisitions or redemptions, if such acquisitions or redemptions oc- curred before Aug. 31, 1964, see section 4(c) of Pub. L. 88-554, set out as an Effective Date of 1964 Amend- ment note under section 318 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 172, 318, 383 of this title. § 383. Special limitations on carryovers of unused in- vestment credits, work incentive program credits, foreign taxes, and capital losses If- (1) the ownership and business of a corpora- tion are changed in the manner described in section 382(a)(1), or (2) in the case of a reorganization specified in paragraph (2) of section 381(a), there is a change in ownership described in section 382(b)(1)(B), then the limitations provided in section 382 in such cases with respect to the carryover of net operating losses shall apply in the same manner, as provided under regulations pre- scribed by the Secretary, with respect to any unused investment credit of the corporation which can otherwise be carried forward under section 46(b), to any unused work incentive pro- gram credit of the corporation which can other- wise be carried forward under section 50A(b), to any excess foreign taxes of the corporation which can otherwise be carried forward under section 904(c), and to any net capital loss of the corporation which can otherwise be carried for- ward under section 1212. (Added Pub. L. 92-178, title III, § 302(a), Dec. 10, 1971, 85 Stat. 5421, and amended Pub. L. 94- 455, title X, § 1031(b)(5), title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1623, 1834.) TAXABLE YEARS BEGINNING AFTER JUNE 30, 1978, AND REORGANIZATIONS PURSUANT TO PLANS ADOPTED ON OR AFTER JANUARY 1, 1978 Pub. L. 94-455, title VII!, § 806(f)(2), (g) (2), (3), Oct. 4, 1976, 90 Stat. 1605, 1606, pro- vided that for purposes of applying this sec. tion as it relates to section 382(a) of this title as amended by section 806(e) of Pub. L. 94-455 to taxable years beginning after June 30, 1978, and for purposes of applying this section as it relates to section 382(b) of this title as amended by section 806(e) of Pub. L. 94-455, to reorganizations pursuant to plans of reorganization adopted by one or more of the parties on or after Jan. 1, 1978, this section will read as follows: § 383. Special limitations on unused investment cred. its, work incentive program credits, foreign taxes, and capital losses In the case of a change of ownership of a cor- poration in the manner described in section 382 (a) or (b), the limitations provided in section 382 in such cases with respect to net operating losses shall apply in the same manner, as pro- vided under regulations prescribed by the Secre- tary, with respect to any unused investment credit of the corporation under section 46(b), to any unused work incentive program credit of the corporation under section 50A(b), to any excess foreign taxes of the corporation under section 904(d), and to any net capital loss of the corporation under section 1212. AMENDMENTS 1976-Pub. L. 94-455 struck out "or his delegate" fol- lowing "Secretary", and substituted "section 904(c)" for "section 904(d)". EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by section 1031(b)(5) of Pub. L. 94-455, see section 1031(c) of Pub. L. 94-455, set out as an Effective Date of 1976 Amend- ment note under section 904 of this title. For purposes of applying this section (as it relates to section 382(a) of this title) as amended by section 806(e) and (f) of Pub. L. 94-455, the amendments made by section 806(e) and (f) of Pub. L. 94-455 effective for taxable years beginning after June 30, 1978, with specified provisions for determining the beginning of the taxable years specified in section 382(a)(1)(B)(i) of this title, and this section (as it relates to section 382(b) of this title) as amended by section 806(e) and (f) of Pub. L. 94-455 to apply (and such sections as In effect prior to such amendment not to apply) to reor- ganizations pursuant to a plan of reorganization adopted by one or more of the parties thereto on or after Jan. 1, 1978, see section 806(g)(2) and (3) of Pub. L. 94-455, set out as an Effective Date of 1976 Amend- ment note under section 382 of this title. EFFECTIVE DATE Section 302(c) of Pub. L. 92-178 provided that: "The amendments made by this section (enacting this sec- tion] shall be applicable only with respect to reorgani- zations and other changes in ownership occurring after the date of enactment of this Act [Dec. 10, 1971) pursuant to a plan of reorganization or contract en- tered into on or after September 29, 1971." § 383 Page 284