PUBLIC LAW 105-277—OCT. 21, 1998 112 STAT. 2681-902 is amended by striking the item relating to 1998, 1999, or 2000 and inserting the following new items: " 1998 105 1999 or 2000 106" (b) EFFECTIVE DATE.—The amendment made by this section Effective date. shall apply with respect to any installment payment for taxable 26 USC 6654 years beginning after December 31, 1999. note. Subtitle B—Provisions Relating to Farmers SEC. 2011. INCOME AVERAGING FOR FARMERS MADE PERMANENT. Subsection (c) of section 933 of the Taxpayer Relief Act of 1997 is amended by striking ", and before January 1, 2001". 26 USC 1301 SEC. 2012. PRODUCTION FLEXIBILITY CONTRACT PAYMENTS. "^"^^ (a) IN GENERAL.— The options under paragraphs (2) and (3) 7 USC 7212 note. of section 112(d) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7212(d)(2) and (3)), as in effect on the date of the enactment of this Act, shall be disregarded in determining the taxable year for which iiny payment under a production flexibility contract under subtitle B of title I of such Act (as so in effect) is properly includible in gross income for purposes of the Internal Revenue Code of 1986. (b) EFFECTIVE DATE. —Subsection (a) shall apply to taxable Applicability. years ending after December 31, 1995. SEC. 2013. 5 -YEAR NET OPERATING LOSS CARRYBACK FOR FARMING LOSSES. (a) IN GENERAL. — Paragraph (1) of section 172(b) (relating to net operating loss deduction) is amended by adding at the end the following new subparagraph: "(G) FARMING LOSSES.—In the case of a taxpayer which has a farming loss (as defined in subsection (i)) for a taxable year, such farming loss shall be a net operating loss carryback to each of the 5 taxable years preceding the taxable year of such loss.". (b) FARMING LOSS.— Section 172 is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: " (i) RULES RELATING TO FARMING LOSSES.— For purposes of this section— "(1) IN GENERAL. —The term 'farming loss' means the lesser of— "(A) the amount which would b<3 the net operating loss for the taxable year if only income and deductions attributable to farming businesses (as defined in section 263A(e)(4)) are taken into account, or "(B) the amount of the net operating loss for such taxable year. "(2) COORDINATION WITH SUBSECTION (b)(2). —For purposes of applying subsection (b)(2), a farming loss for any taxable year shall be treated in a manner similar to the manner in which a specified liability loss is treated. "(3) ELECTION.— Any taxpayer entitled to a 5-year carryback under subsection (b)(1)(G) from any loss year may elect to have the carryback period with respect to such loss year determined without regard to subsection (b)(1)(G). Such election shall be made in such manner as may be prescribed
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