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136 STAT. 2012 PUBLIC LAW 117–169—AUG. 16, 2022 any portion of an eligible credit described in clauses (ix) through (xi) of subsection (f)(1)(A)— ‘‘(A) subsection (c) of section 50 shall apply to the applicable investment credit property (as defined in sub- section (a)(5) of such section) as if such eligible credit was allowed to the eligible taxpayer, and ‘‘(B) if, during any taxable year, the applicable invest- ment credit property (as defined in subsection (a)(5) of section 50) is disposed of, or otherwise ceases to be invest- ment credit property with respect to the eligible taxpayer, before the close of the recapture period (as described in subsection (a)(1) of such section)— ‘‘(i) such eligible taxpayer shall provide notice of such occurrence to the transferee taxpayer (in such form and manner as the Secretary shall prescribe), and ‘‘(ii) the transferee taxpayer shall provide notice of the recapture amount (as defined in subsection (c)(2) of such section), if any, to the eligible taxpayer (in such form and manner as the Secretary shall pre- scribe). ‘‘(4) PROHIBITION ON ELECTION OR TRANSFER WITH RESPECT TO PROGRESS EXPENDITURES.—This section shall not apply with respect to any amount of an eligible credit which is allowed pursuant to rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). ‘‘(h) REGULATIONS.—The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including regulations or other guidance providing rules for determining a partner’s distributive share of the tax exempt income described in subsection (c)(1).’’. (c) REAL ESTATE INVESTMENT TRUSTS.—Section 50(d) is amended by adding at the end the following: ‘‘In the case of a real estate investment trust making an election under section 6418, paragraphs (1)(B) and (2)(B) of the section 46(e) referred to in paragraph (1) of this subsection shall not apply to any investment credit property of such real estate investment trust to which such election applies.’’. (d) 3-YEAR CARRYBACK FOR APPLICABLE CREDITS.—Section 39(a) is amended by adding at the end the following: ‘‘(4) 3-YEAR CARRYBACK FOR APPLICABLE CREDITS.—Notwith- standing subsection (d), in the case of any applicable credit (as defined in section 6417(b))— ‘‘(A) this section shall be applied separately from the business credit (other than the applicable credit), ‘‘(B) paragraph (1) shall be applied by substituting ‘each of the 3 taxable years’ for ‘the taxable year’ in subparagraph (A) thereof, and ‘‘(C) paragraph (2) shall be applied— ‘‘(i) by substituting ‘23 taxable years’ for ‘21 taxable years’ in subparagraph (A) thereof, and ‘‘(ii) by substituting ‘22 taxable years’ for ‘20 tax- able years’ in subparagraph (B) thereof.’’. 26 USC 50. Guidelines. Notices. Applicability. VerDate Sep 11 2014 15:35 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00196 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw