enactment of the RESTAURANTS Act of 2020. 203. Clarification of treatment of expenses paid or incurred with proceeds from certain grants and loans (a) In general For purposes of the Internal Revenue Code of 1986 and notwithstanding any other provision of law, any deduction and the basis of any property shall be determined without regard to whether any amount is excluded from gross income under section 202 of this Act or section 1106(i) of the CARES Act. (b) Clarification of exclusion of loan forgiveness Section 1106(i) of the CARES Act is amended to read as follows: (i) Taxability For purposes of the Internal Revenue Code of 1986, no amount shall be included in the gross income of the eligible recipient by reason of forgiveness of indebtedness described in subsection (b). . (c) Effective date Subsection (a) and the amendment made by subsection (b) shall apply to taxable years ending after the date of the enactment of the CARES Act. III Net Operating Losses 301. 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 a taxpayer other than a corporation, any excess business loss of the taxpayer shall not be allowed. . (b) Farming losses Section 461 of such Code is amended by striking subsection (j). (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 302. Certain taxpayers allowed carryback of net operating losses arising in 2019 and 2020 (a) Carryback of losses arising in 2019 and 2020 (1) In general Section 172(b)(1)(D)(i) of the Internal Revenue Code of 1986 is amended to read as follows: (i) In general In the case of any net operating loss arising in a taxable year beginning after December 31, 2018, and before January 1, 2021, and to which subparagraphs (B) and (C)(i) do not apply, such loss shall be a net operating loss carryback to each taxable year preceding the taxable year of