12 2 STA T .385 3 PUBLIC LA W 11 0– 3 4 3 —O CT. 3 , 2008 Theag g r ega t ea moun to fs u c hre d uct i ons sha l l b e treated as income ( from sources w ithout the U nited S tates ) which is not combined foreign oil and gas income .‘ ‘( B ) REDUCTIONF O RP RE -20 0 9 FOREI G NOI L E X TR A CTION LO S SES. — The reduction under this p aragraph shall be e q ual to the lesser of— ‘‘(i) the foreign oil and gas e x traction income of the taxpa y er for the taxable year (determined without regard to this paragraph) , or ‘‘(ii) the excess of— ‘‘( I ) the aggregate amount of foreign oil extrac- tion losses for preceding taxable years beginning after D ecember 31 ,1 982 , and before J anuary 1, 2 0 09, o v er ‘‘(II) so much of such aggregate amount as was recharacteri z ed under this paragraph (as in effect before and after the date of the enactment of the E nergy Improvement and Extension A ct of 2008) for preceding taxable years beginning after December 31, 1982. ‘‘( C ) REDUCTION FOR POST-200 8 FOREIGN OIL AND GAS LOSSES.—The reduction under this paragraph shall be equal to the lesser of— ‘‘(i) the combined foreign oil and gas income of the taxpayer for the taxable year (determined without regard to this paragraph), reduced by an amount equal to the reduction under subparagraph (A) for the taxable year, or ‘‘(ii) the excess of— ‘‘(I) the aggregate amount of foreign oil and gas losses for preceding taxable years beginning after December 31, 2008, over ‘‘(II) so much of such aggregate amount as was recharacterized under this paragraph for pre- ceding taxable years beginning after December 31, 2008. ‘‘(D) F OREIGN OIL AND GAS LOSS DEFINED.— ‘‘(i) IN GENERAL.—For purposes of this paragraph, the term ‘foreign oil and gas loss ’ means the amount by which— ‘‘(I) the gross income for the taxable year from sources without the United States and its posses- sions (whether or not the taxpayer chooses the benefits of this subpart for such taxable year) ta k en into account in determining the combined foreign oil and gas income for such year, is exceeded by ‘‘(II) the sum of the deductions properly appor- tioned or allocated thereto. ‘‘(ii) N ET OPERATING LOSS DEDUCTION NOT TA K EN INTO ACCOUNT.—For purposes of clause (i), the net operating loss deduction allowable for the taxable year under section 1 7 2(a) shall not be taken into account. ‘‘(iii) EXPROPRIATION AND CASUALT Y LOSSES NOT TAKEN INTO ACCOUNT.—For purposes of clause (i), there shall not be taken into account— Ef f ectiv e da te s. Effective dates.
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