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losses may be carried back to each of the taxable
years during the period beginning with the taxable
year in which the plant was placed in service. No
loss, however, may be carried back to a taxable
year beginning before January 1, 1984, unless it
may be carried back without regard to these rules.
The provisions of the bill apply generally to
expenses incurred (without regard to the economic
performance requirement) after the date of
enactment.
* * * * * * *
Conference Agreement
The Conference Agreement generally follows the House
bill, with modifications.
* * * * * * *
H. Conf. Rept. 98-861, at 871-873 (1984), 1984-3 C.B. (Vol. 2) 1,
125-127.
The conference report states that the 10-year carryback of
specified liability losses applies to "net operating losses
attributable to certain liabilities deferred under these
provisions." "These” provisions are the limits on premature
accruals; i.e., the economic performance rules of section 461(h).
This suggests that Congress intended the 10-year carryback to
apply only to liabilities for which deduction is deferred by the
economic performance rules. Petitioners' accrual of the
deduction for the expenses at issue was not deferred by the
economic performance rules. Since the economic performance rules
do not limit petitioners' accrual of the deduction for the
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