; or (B) a textile-based product contained in chapter 39, 42, 64, 65, 66, 70, 94, or 96 of the Harmonized Tariff Schedule of the United States. . (2) Net operating losses Section 172(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (10) Exclusions for certain textile products Gross income shall be determined without regard to section 139J and 139K. . (3) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new items: Sec. 139J. Sales of finished textile products imported from qualifying Western Hemisphere countries. Sec. 139K. Textile fiber products exported to qualifying Western Hemisphere countries. . (4) Effective date The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act. (b) Deduction for domestic production of textile fiber products (1) In general Part VIII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 251. Income attributable to domestic textile production activities (a) In general In the case of a corporation, there shall be allowed as a deduction an amount equal to 9 percent of the lesser of— (1) the qualified textile production activities income of the taxpayer for the taxable year, or (2) taxable income (determined without regard to this section) for the taxable year. (b) Deduction limited to wages paid (1) In general The amount of the deduction allowable under subsection (a) for any taxable year shall not exceed 50 percent of the W–2 wages of the taxpayer for the taxable year. (2) W– 2 wages For purposes of this section— (A) In general The term W–2 wages means, with respect to any person for any taxable year of such person, the sum of the amounts described in paragraphs (3) and (8) of section 6051(a) paid by such person with respect to employment of employees by such person during the