H.R. 9383

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9383 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 9383

To amend the Internal Revenue Code of 1986 to provide special rules 
with respect to the net operating losses of certain financial 
institutions.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 22, 2026

Mr. Carey (for himself, Ms. Moore of Wisconsin, Ms. Tenney, Ms. Sewell, 
Mr. Moran, Ms. DelBene, Mr. Yakym, Mr. Beyer, Mr. Miller of Ohio, and 
Mr. Horsford) introduced the following bill; which was referred to the 
Committee on Ways and Means

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to provide special rules 
with respect to the net operating losses of certain financial 
institutions.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Small Business and Consumer Credit 
Act of 2026''.

SEC. 2. NET OPERATING LOSSES OF CERTAIN FINANCIAL INSTITUTIONS.

(a) In General.--Section 172(b)(1) of the Internal Revenue Code of 
1986 is amended by redesignating subparagraph (D) as subparagraph (E) 
and inserting after subparagraph (C) the following new subparagraph:
``(D) Certain financial institutions.--
``(i) 2027.--In the case of any specified 
financial institution which elects the 
application of this clause for any taxable year 
beginning after December 31, 2026, and before 
January 1, 2028, the net operating loss for 
such taxable year shall be a net operating loss 
carryover to each of the 20 taxable years 
following the taxable year of the loss.
``(ii) 2028.--In the case of any specified 
financial institution which elects the 
application of this clause for any taxable year 
beginning after December 31, 2027, and before 
January 1, 2029, the net operating loss for 
such taxable year--
``(I) shall be a net operating loss 
carryback to the taxable year preceding 
the taxable year of the loss, and
``(II) shall be a net operating 
loss carryover to each of the 20 
taxable years following the taxable 
year of the loss.
``(iii) 2029 and thereafter.--In the case 
of any specified financial institution which 
elects the application of this clause for any 
taxable years beginning after December 31, 
2028, the net operating loss for such taxable 
year--
``(I) shall be a net operating loss 
carryback to each of the 2 taxable 
years preceding the taxable year of the 
loss, and
``(II) shall be a net operating 
loss carryover to each of the 20 
taxable years following the taxable 
year of the loss.
``(iv) Specified financial institution.--
For purposes of this subparagraph, the term 
`specified financial institution' means--
``(I) any bank (as defined in 
section 581) that is not a member of an 
affiliated group (as defined in section 
1504(a)(1)),
``(II) any member of an affiliated 
group (as so defined in section 
1504(a)(1)) that includes one or more 
banks (as defined in section 581) that 
are not described in section 2(c)(2)(H) 
of the Bank Holding Company Act of 1956 
(12 U.S.C. 1841(c)(2)(H)), and
``(III) any bank within the meaning 
of section 585(a)(2)(B).
``(v) Elections.--Any election under this 
subparagraph--
``(I) shall be made in such manner 
as the Secretary may prescribe,
``(II) shall be made not later than 
the due date of the taxpayer's return 
of tax for the taxable year of the net 
operating loss to which such election 
relates, and
``(III) once made for any taxable 
year, shall be irrevocable for such 
taxable year.''.
(b) Conforming Amendments.--
(1) Section 172(b)(1)(A)(i) of such Code is amended by 
striking ``and (D)'' and inserting ``(D)(ii)(I), (D)(iii)(I), 
and (E)''.
(2) Section 172(b)(1)(A)(ii) of such Code is amended by 
inserting ``(D)(i), (D)(ii)(II), and (D)(iii)(II),'' after 
``(C)(ii),''.
(c) Effective Date.--The amendments made by this section shall 
apply to net operating losses arising in taxable years beginning after 
December 31, 2026.
<all>