1. Limitation on excess business losses of non-corporate taxpayers restored and made permanent (a) In general Section 461(l)(1) of the Internal Revenue Code of 1986 is amended to read as follows: (1) Limitation In the case of taxable year of a taxpayer other than a corporation beginning after December 31, 2017— (A) subsection (j) (relating to limitation on excess farm losses of certain taxpayers) shall not apply, and (B) any excess business loss of the taxpayer for the taxable year shall not be allowed. . (b) Effective date The amendment made by this section shall take effect as if included in section 2304(a) of the Coronavirus Aid, Relief, and Economic Security Act. 2. Certain taxpayers allowed 2 -year carryback of net operating losses arising in 2020 (a) Two-Year carryback of losses arising in 2020 (1) In general Section 172(b)(1)(D)(i) of the Internal Revenue Code of 1986 is amended— (A) by striking beginning after December 31, 2017 and inserting beginning after December 31, 2019 , and (B) by striking 5 taxable years in subclause (I) and inserting 2 taxable years . (2) Conforming amendments (A) The heading for section 172(b)(1)(D) of such Code is amended by striking 2018, 2019, and . (B) Section 172(b)(1)(D) of such Code is amended by striking clause (iii) and by redesignating clauses (iv) and (v) as clauses (iii) and (iv), respectively. (C) Section 172(b)(1)(D)(iv) of such Code, as so redesignated, is amended— (i) by striking subclause (II), and (ii) by striking Special rules and all that follows through If the 5-year carryback period and inserting the following: Special rule for election under paragraph (3) to exclude section 965 years.— If the 2-year carryback period . (b) Carryback only allowed for small businesses (1) In general Section 172(b)(1)(D)(i) of such Code is amended by striking net operating loss arising and inserting net operating loss of an eligible small business arising . (2) Eligible small business Section 172(b)(1)(D) of such Code, as amended by the preceding provisions of this Act, is