§ 39. Carryback and carryforward of unused credits
(a)
In general
(1)
1-year carryback and 20-year carryforward
If the sum of the business credit carryforwards to the taxable year plus the amount of the current year business credit for the taxable year exceeds the amount of the limitation imposed by subsection (c) of section
38 for such taxable year (hereinafter in this section referred to as the “unused credit year”), such excess (to the extent attributable to the amount of the current year business credit) shall be—
(2)
Amount carried to each year
(A)
Entire amount carried to first year
The entire amount of the unused credit for an unused credit year shall be carried to the earliest of the 21 taxable years to which (by reason of paragraph (1)) such credit may be carried.
(3)
5-year carryback for marginal oil and gas well production credit
Notwithstanding subsection (d), in the case of the marginal oil and gas well production credit—
(A)
this section shall be applied separately from the business credit (other than the marginal oil and gas well production credit) or the eligible small business credits,
(4)
5-year carryback for eligible small business credits
(A)
In general
Notwithstanding subsection (d), in the case of eligible small business credits determined in the first taxable year of the taxpayer beginning in 2010—
(b)
Limitation on carrybacks
The amount of the unused credit which may be taken into account under section
38
(a)(3) for any preceding taxable year shall not exceed the amount by which the limitation imposed by section
38
(c) for such taxable year exceeds the sum of—
(c)
Limitation on carryforwards
The amount of the unused credit which may be taken into account under section
38
(a)(1) for any succeeding taxable year shall not exceed the amount by which the limitation imposed by section
38
(c) for such taxable year exceeds the sum of the amounts which, by reason of this section, are carried to such taxable year and are attributable to taxable years preceding the unused credit year.
(d)
Transitional rule
No portion of the unused business credit for any taxable year which is attributable to a credit specified in section
38
(b) or any portion thereof may be carried back to any taxable year before the first taxable year for which such specified credit or such portion is allowable (without regard to subsection (a)).