This bill exempts taxpayers whose modified adjusted gross income does not exceed $400,000 in a taxable year from the 80% taxable income limit on net operating loss carryovers.
To amend the Internal Revenue Code of 1986 to except certain 
   individuals from the 80 percent taxable income limitation on net 
                       operating loss carryovers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CERTAIN INDIVIDUALS NOT SUBJECT TO 80-PERCENT TAXABLE INCOME 
              LIMIT ON NET OPERATING LOSS CARRYOVERS.

    (a) In General.--Section 172(a) of the Internal Revenue Code of 
1986 is amended by adding at the end the following:
``In the case of an individual (other than a trust or estate) whose 
modified adjusted gross income for the taxable year does not exceed 
$400,000, paragraph (2)(B)(ii) shall not apply. For purposes of the 
preceding sentence, the term `modified adjusted gross income' means 
adjusted gross income increased by any amount excluded from gross 
income under section 911, 931, or 933.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2020.
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To amend the Internal Revenue Code of 1986 to except certain individuals from the 80 percent taxable income limitation on net operating loss carryovers.
To amend the Internal Revenue Code of 1986 to except certain individuals from the 80 percent taxable income limitation on net operating loss carryovers.
Official Titles - House of Representatives
Official Title as Introduced
To amend the Internal Revenue Code of 1986 to except certain individuals from the 80 percent taxable income limitation on net operating loss carryovers.
Rep. Newman, Marie