PUBLIC LAW 109–135—DEC. 21, 2005
119 STAT. 2625
‘‘(B) DOLLAR LIMITATION.—The aggregate amount of reforestation expenditures which may be taken into account under subparagraph (A) with respect to each qualified timber property for any taxable year shall not exceed— ‘‘(i) except as provided in clause (ii) or (iii), $10,000, ‘‘(ii) in the case of a separate return by a married individual (as defined in section 7703), $5,000, and ‘‘(iii) in the case of a trust, zero.’’. (B) Paragraph (4) of section 194(c) is amended to read as follows: ‘‘(4) TREATMENT OF TRUSTS AND ESTATES.—The aggregate amount of reforestation expenditures incurred by any trust or estate shall be apportioned between the income beneficiaries and the fiduciary under regulations prescribed by the Secretary. Any amount so apportioned to a beneficiary shall be taken into account as expenditures incurred by such beneficiary in applying this section to such beneficiary.’’. (2) Subparagraph (C) of section 1245(a)(2) is amended by striking ‘‘or 193’’ and inserting ‘‘193, or 194’’. (j) AMENDMENTS RELATED TO SECTION 336 OF THE ACT.— (1) Clause (iv) of section 168(k)(2)(A) is amended by striking ‘‘subparagraphs (B) and (C)’’ and inserting ‘‘subparagraph (B) or (C)’’. (2) Clause (iii) of section 168(k)(4)(B) is amended by striking ‘‘and paragraph (2)(C)’’ and inserting ‘‘or paragraph (2)(C) (as so modified)’’. (k) AMENDMENT RELATED TO SECTION 402 OF THE ACT.—Paragraph (2) of section 904(g) is amended to read as follows: ‘‘(2) OVERALL DOMESTIC LOSS.—For purposes of this subsection— ‘‘(A) IN GENERAL.—The term ‘overall domestic loss’ means— ‘‘(i) with respect to any qualified taxable year, the domestic loss for such taxable year to the extent such loss offsets taxable income from sources without the United States for the taxable year or for any preceding qualified taxable year by reason of a carryback, and ‘‘(ii) with respect to any other taxable year, the domestic loss for such taxable year to the extent such loss offsets taxable income from sources without the United States for any preceding qualified taxable year by reason of a carryback. ‘‘(B) DOMESTIC LOSS.—For purposes of subparagraph (A), the term ‘domestic loss’ means the amount by which the gross income for the taxable year from sources within the United States is exceeded by the sum of the deductions properly apportioned or allocated thereto (determined without regard to any carryback from a subsequent taxable year). ‘‘(C) QUALIFIED TAXABLE YEAR.—For purposes of subparagraph (A), the term ‘qualified taxable year’ means any taxable year for which the taxpayer chose the benefits of this subpart.’’. (l) AMENDMENT RELATED TO SECTION 403 OF THE ACT.—Section 403 of the American Jobs Creation Act of 2004 is amended by adding at the end the following new subsection:
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26 USC 194.
26 USC 864 note.
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