(

a) A qualified taxpayer, as defined in

Section 24416.2, 24416.4, 24416.5, 24416.6, or 24416.7, may elect to take the deduction provided by

Section of the Internal Revenue Code, relating to the net operating loss deduction, as modified by

Section 24416, in computing net income under

Section 24341, with the following exceptions to

Section 24416:

(1) Subdivision (

a) of

Section 24416, relating to years in which allowable losses are sustained, shall not be applicable.

(2) Subdivision (

b) of

Section 24416, relating to the 50-percent reduction of losses, shall not be applicable.

(3) The provisions of subparagraphs (

B) and (

C) of

Section 172 (b) (1) of the Internal Revenue Code shall not apply. To the extent applicable to California law, net operating losses attributable to entities with losses described by

Section 172(b)(1)(

J) shall be applied in accordance with

Section 172(b)(1)(

A) and (

B) of the Internal Revenue Code. (

b) Corporations whose income is subject to the provisions of

Section or 25101.15 shall make the computations required by

Section 25108. (

c) The election to compute the net operating loss under this

section shall be made in a statement attached to the original return, timely filed for the year in which the net operating loss is incurred and shall be irrevocable. In addition to the exceptions specified in subdivision (a),

Section 24416.2, 24416.4, 24416.5, 24416.6, or 24416.7, as appropriate, shall be applicable. (

d) Any carryover of a net operating loss sustained by a qualified taxpayer, as defined in subdivision (

a) or (

b) of

Section 24416.2 as that

section read immediately prior to January 1, 1997, shall, if previously elected, continue to be a deduction, as provided in subdivision (a), applied as if the provisions of subdivision (

a) or (

b) of

Section 24416.2, as that

section read prior to January 1, 1997, still applied.