; and , and by adding at the end the following new subparagraph: (C) subsection (a)(2) shall be applied by substituting real estate investment trust taxable income (as defined in section 857(b)(2) but without regard to the deduction for dividends paid (as defined in section 561)) for taxable income . . (d) Annual increase of indefinite carryover amounts Section 172(b) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: (3) Annual increase of indefinite carryover amounts For purposes of paragraph (2)— (A) the amount of any indefinite net operating loss which is carried to the next succeeding taxable year after the loss year (within the meaning of paragraph (2)) shall be increased by an amount equal to— (i) the amount of the loss which may be so carried over to such succeeding taxable year (determined without regard to this paragraph), multiplied by (ii) the sum of— (I) the annual Federal short-term rate (determined under section 1274(d)) for the last month ending before the beginning of such taxable year, plus (II) 4 percentage points, and (B) the amount of any indefinite net operating loss which is carried to any succeeding taxable year (after such next succeeding taxable year) shall be an amount equal to— (i) the excess of— (I) the amount of the loss carried to the prior taxable year (after any increase under this paragraph with respect to such amount), over (II) the amount by which such loss was reduced under paragraph (2) by reason of the taxable income for such prior taxable year, multiplied by (ii) a percentage equal to 100 percent plus the percentage determined under subparagraph (A)(ii) with respect to such succeeding taxable year. For purposes of the preceding sentence, the term indefinite net operating loss means any net operating loss arising in a taxable year beginning after December 31, 2017. . (e) Effective date (1) Carryforwards and carrybacks The amendments made by subsections (a) and (b) shall apply to net operating losses