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131 STAT. 2121 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(iii) Farm machinery or equipment. ‘‘(10) CROSS REFERENCES.— ‘‘(A) For requirement that an electing real property trade or business use the alternative depreciation system, see section 168(g)(1)(F). ‘‘(B) For requirement that an electing farming business use the alternative depreciation system, see section 168(g)(1)(G).’’. (b) TREATMENT OF CARRYFORWARD OF DISALLOWED BUSINESS INTEREST IN CERTAIN CORPORATE ACQUISITIONS.— (1) IN GENERAL.—Section 381(c) is amended by inserting after paragraph (19) the following new paragraph: ‘‘(20) CARRYFORWARD OF DISALLOWED BUSINESS INTEREST.— The carryover of disallowed business interest described in sec- tion 163(j)(2) to taxable years ending after the date of distribu- tion or transfer.’’. (2) APPLICATION OF LIMITATION.—Section 382(d) is amended by adding at the end the following new paragraph: ‘‘(3) APPLICATION TO CARRYFORWARD OF DISALLOWED INTEREST.—The term ‘pre-change loss’ shall include any carry- over of disallowed interest described in section 163(j)(2) under rules similar to the rules of paragraph (1).’’. (3) CONFORMING AMENDMENT.—Section 382(k)(1) is amended by inserting after the first sentence the following: ‘‘Such term shall include any corporation entitled to use a carryforward of disallowed interest described in section 381(c)(20).’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. SEC. 13302. MODIFICATION OF NET OPERATING LOSS DEDUCTION. (a) LIMITATION ON DEDUCTION.— (1) IN GENERAL.—Section 172(a) is amended to read as follows: ‘‘(a) DEDUCTION ALLOWED.—There shall be allowed as a deduc- tion for the taxable year an amount equal to the lesser of— ‘‘(1) the aggregate of the net operating loss carryovers to such year, plus the net operating loss carrybacks to such year, or ‘‘(2) 80 percent of taxable income computed without regard to the deduction allowable under this section. For purposes of this subtitle, the term ‘net operating loss deduction’ means the deduction allowed by this subsection.’’. (2) COORDINATION OF LIMITATION WITH CARRYBACKS AND CARRYOVERS.—Section 172(b)(2) is amended by striking ‘‘shall be computed—’’ and all that follows and inserting ‘‘shall— ‘‘(A) be computed with the modifications specified in subsection (d) other than paragraphs (1), (4), and (5) thereof, and by determining the amount of the net oper- ating loss deduction without regard to the net operating loss for the loss year or for any taxable year thereafter, ‘‘(B) not be considered to be less than zero, and ‘‘(C) not exceed the amount determined under sub- section (a)(2) for such prior taxable year.’’. (3) CONFORMING AMENDMENT.—Section 172(d)(6) is amended by striking ‘‘and’’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and 26 USC 163 note. 26 USC 381. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00069 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS