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131 STAT. 2122 PUBLIC LAW 115–97—DEC. 22, 2017 inserting ‘‘; and’’, and by adding at the end the following new subparagraph: ‘‘(C) subsection (a)(2) shall be applied by substituting ‘real estate investment trust taxable income (as defined in section 857(b)(2) but without regard to the deduction for dividends paid (as defined in section 561))’ for ‘taxable income’.’’. (b) REPEAL OF NET OPERATING LOSS CARRYBACK; INDEFINITE CARRYFORWARD.— (1) IN GENERAL.—Section 172(b)(1)(A) is amended— (A) by striking ‘‘shall be a net operating loss carryback to each of the 2 taxable years’’ in clause (i) and inserting ‘‘except as otherwise provided in this paragraph, shall not be a net operating loss carryback to any taxable year’’, and (B) by striking ‘‘to each of the 20 taxable years’’ in clause (ii) and inserting ‘‘to each taxable year’’. (2) CONFORMING AMENDMENT.—Section 172(b)(1) is amended by striking subparagraphs (B) through (F). (c) TREATMENT OF FARMING LOSSES.— (1) ALLOWANCE OF CARRYBACKS.—Section 172(b)(1), as amended by subsection (b)(2), is amended by adding at the end the following new subparagraph: ‘‘(B) FARMING LOSSES.— ‘‘(i) IN GENERAL.—In the case of any portion of a net operating loss for the taxable year which is a farming loss with respect to the taxpayer, such loss shall be a net operating loss carryback to each of the 2 taxable years preceding the taxable year of such loss. ‘‘(ii) FARMING LOSS.—For purposes of this section, the term ‘farming loss’ means the lesser of— ‘‘(I) the amount which would be the net oper- ating loss for the taxable year if only income and deductions attributable to farming businesses (as defined in section 263A(e)(4)) are taken into account, or ‘‘(II) the amount of the net operating loss for such taxable year. ‘‘(iii) COORDINATION WITH PARAGRAPH (2).—For pur- poses of applying paragraph (2), a farming loss for any taxable year shall be treated as a separate net operating loss for such taxable year to be taken into account after the remaining portion of the net oper- ating loss for such taxable year. ‘‘(iv) ELECTION.—Any taxpayer entitled to a 2-year carryback under clause (i) from any loss year may elect not to have such clause apply to such loss year. Such election shall be made in such manner as pre- scribed by the Secretary and shall be made by the due date (including extensions of time) for filing the taxpayer’s return for the taxable year of the net oper- ating loss. Such election, once made for any taxable year, shall be irrevocable for such taxable year.’’. (2) CONFORMING AMENDMENTS.— 26 USC 172. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00070 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS