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131 STAT. 2168 PUBLIC LAW 115–97—DEC. 22, 2017 investment income which are not intended or available for the use or benefit of the educational institution shall not be taken into account. ‘‘(2) RELATED ORGANIZATION.—For purposes of this sub- section, the term ‘related organization’ means, with respect to an educational institution, any organization which— ‘‘(A) controls, or is controlled by, such institution, ‘‘(B) is controlled by 1 or more persons which also control such institution, or ‘‘(C) is a supported organization (as defined in section 509(f)(3)), or an organization described in section 509(a)(3), during the taxable year with respect to such institution.’’. (b) CLERICAL AMENDMENT.—The table of subchapters for chapter 42 is amended by adding at the end the following new item: ‘‘SUBCHAPTER H—EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE COLLEGES AND UNIVERSITIES’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. SEC. 13702. UNRELATED BUSINESS TAXABLE INCOME SEPARATELY COMPUTED FOR EACH TRADE OR BUSINESS ACTIVITY. (a) IN GENERAL.—Subsection (a) of section 512 is amended by adding at the end the following new paragraph: ‘‘(6) SPECIAL RULE FOR ORGANIZATION WITH MORE THAN 1 UNRELATED TRADE OR BUSINESS.—In the case of any organiza- tion with more than 1 unrelated trade or business— ‘‘(A) unrelated business taxable income, including for purposes of determining any net operating loss deduction, shall be computed separately with respect to each such trade or business and without regard to subsection (b)(12), ‘‘(B) the unrelated business taxable income of such organization shall be the sum of the unrelated business taxable income so computed with respect to each such trade or business, less a specific deduction under subsection (b)(12), and ‘‘(C) for purposes of subparagraph (B), unrelated busi- ness taxable income with respect to any such trade or business shall not be less than zero.’’. (b) EFFECTIVE DATE.— (1) IN GENERAL.—Except to the extent provided in para- graph (2), the amendment made by this section shall apply to taxable years beginning after December 31, 2017. (2) CARRYOVERS OF NET OPERATING LOSSES.—If any net operating loss arising in a taxable year beginning before January 1, 2018, is carried over to a taxable year beginning on or after such date— (A) subparagraph (A) of section 512(a)(6) of the Internal Revenue Code of 1986, as added by this Act, shall not apply to such net operating loss, and (B) the unrelated business taxable income of the organization, after the application of subparagraph (B) of such section, shall be reduced by the amount of such net operating loss. 26 USC 512 note. 26 USC 512. 26 USC 4968 note. 26 USC prec. 4940. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00116 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS