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136 STAT. 1819 PUBLIC LAW 117–169—AUG. 16, 2022 average annual adjusted financial statement income test of subparagraph (B) for one or more taxable years which— ‘‘(i) are prior to such taxable year, and ‘‘(ii) end after December 31, 2021. ‘‘(B) AVERAGE ANNUAL ADJUSTED FINANCIAL STATEMENT INCOME TEST.—For purposes of this subsection— ‘‘(i) a corporation meets the average annual adjusted financial statement income test for a taxable year if the average annual adjusted financial statement income of such corporation (determined without regard to section 56A(d)) for the 3-taxable-year period ending with such taxable year exceeds $1,000,000,000, and ‘‘(ii) in the case of a corporation described in para- graph (2), such corporation meets the average annual adjusted financial statement income test for a taxable year if— ‘‘(I) the corporation meets the requirements of clause (i) for such taxable year (determined after the application of paragraph (2)), and ‘‘(II) the average annual adjusted financial statement income of such corporation (determined without regard to the application of paragraph (2) and without regard to section 56A(d)) for the 3-taxable-year-period ending with such taxable year is $100,000,000 or more. ‘‘(C) EXCEPTION.—Notwithstanding subparagraph (A), the term ‘applicable corporation’ shall not include any cor- poration which otherwise meets the requirements of subparagraph (A) if— ‘‘(i) such corporation— ‘‘(I) has a change in ownership, or ‘‘(II) has a specified number (to be determined by the Secretary and which shall, as appropriate, take into account the facts and circumstances of the taxpayer) of consecutive taxable years, including the most recent taxable year, in which the corporation does not meet the average annual adjusted financial statement income test of subparagraph (B), and ‘‘(ii) the Secretary determines that it would not be appropriate to continue to treat such corporation as an applicable corporation. The preceding sentence shall not apply to any corporation if, after the Secretary makes the determination described in clause (ii), such corporation meets the average annual adjusted financial statement income test of subparagraph (B) for any taxable year beginning after the first taxable year for which such determination applies. ‘‘(D) SPECIAL RULES FOR DETERMINING APPLICABLE COR- PORATION STATUS.— ‘‘(i) IN GENERAL.—Solely for purposes of deter- mining whether a corporation is an applicable corpora- tion under this paragraph, all adjusted financial state- ment income of persons treated as a single employer with such corporation under subsection (a) or (b) of section 52 (determined with the modifications described in clause (ii)) shall be treated as adjusted financial Definition. Time period. Effective date. VerDate Sep 11 2014 13:57 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00003 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw