110 STAT. 1828 PUBLIC LAW 104-188—AUG. 20, 1996 "(A) IN GENERAL.—The term 'adjusted base period income' means the average of the inflation-adjusted possession incomes of the corporation for each base period year. "(B) INFLATION-ADJUSTED POSSESSION INCOME.— For purposes of subparagraph (A), the inflation-adjusted possession income of any corporation for any base period year shall be an amount equal to the sum of— "(i) the possession income of such corporation for such base period year, plus "(ii) such possession income multiplied by the inflation adjustment percentage for such base period year. "(C) INFLATION ADJUSTMENT PERCENTAGE.—For purposes of subparagraph (B), the inflation adjustment percentage for any base period year means the percentage (if any) by which— "(i) the CPI for 1995, exceeds "(ii) the CPI for the calendar year in which the base period year for which the determination is being made ends. For purposes of the preceding sentence, the CPI for any calendar year is the CPI (as defined in section 1(f)(5)) for such year under section 1(f)(4). " (D) INCREASE IN INFLATION ADJUSTMENT PERCENTAGE FOR GROWTH DURING BASE YEARS.— The inflation adjustment percentage (determined under subparagraph (C) without regard to this subparagraph) for each of the 5 taxable years referred to in paragraph (5)(A) shall be increased by- "(i) 5 percentage points in the case of a taxable year ending during the 1-year period ending on October 13, 1995; "(ii) 10.25 percentage points in the case of a taxable year ending during the 1-year period ending on October 13, 1994; "(iii) 15.76 percentage points in the case of a taxable year ending during the 1-year period ending on October 13, 1993; "(iv) 21.55 percentage points in the case of a taxable year ending during the 1-year period ending on October 13, 1992; and "(v) 27.63 percentage points in the case of a taxable year ending during the 1-year period ending on October 13, 1991. "(5) BASE PERIOD YEAR.— For purposes of this subsection— "(A) IN GENERAL.— The term 'base period year' means each of 3 taxable years which are among the 5 most recent taxable years of the corporation ending before October 14, 1995, determined by disregarding— "(i) one taxable year for which the corporation had the largest inflation-adjusted possession income, and "(ii) one taxable year for which the corporation had the smallest inflation-adjusted possession income. "(B) CORPORATIONS NOT HAVING SIGNIFICANT POSSES- SION INCOME THROUGHOUT 5-YEAR PERIOD.— "(i) IN GENERAL. — If a corporation does not have significant possession income for each of the most
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