26 U.S.C. § 383 — Special limitations on certain excess credits, etc.

(a) Excess credits. (1) In general. If a corporation has an ownership change, regulations limit how much of its "excess credit" from an earlier year can be used in a later post-change year. The amount usable is based on the tax owed on the part of taxable income that doesn't exceed the section 382 limitation for that post-change year — and only after applying section 382 and subsections (b) and (c) of this section first. (2) Excess credit. An "excess credit" means (A) any unused general business credit under section 39, and (B) any unused minimum tax credit under section 53. (b) Limitation on net capital loss. If a corporation has an ownership change, regulations — built on the same principles as section 382 — limit how much of a net capital loss from a year before the first post-change year can be used in a post-change year. Those regulations must require that any such net capital loss used in a post-change year reduces the section 382 limitation applied to pre-change losses for that year. (c) Foreign tax credits. If a corporation has an ownership change, regulations consistent with the purposes of this section and section 382 limit how much of the corporation's excess foreign taxes under section 904(c), from before the first post-change taxable year, can be used afterward. (d) Pro ration rules for year which includes change. For the year that includes the change itself, this section follows rules similar to those in section 382(b)(3) and 382(d)(1)(B), which split that year's limitation and losses based on the number of days before and after the change. (e) Definitions. Terms in this section mean the same as they do in section 382, adjusted as appropriate to reflect that this section's limits apply to credits and net capital losses rather than net operating losses.