Page 162 - Tax Reform

131 STAT. 2212 PUBLIC LAW 115–97—DEC. 22, 2017

‘‘(ii) the aggregate amount described in subsection
(c)(1)(A) with respect to such United States share-
holder.’’.
(b) FOREIGN TAX CREDIT.—
(1) APPLICATION OF DEEMED PAID FOREIGN TAX CREDIT.—
26 USC 960. Section 960 is amended adding at the end the following new
subsection:
‘‘(d) DEEMED PAID CREDIT FOR TAXES PROPERLY ATTRIBUTABLE
TO TESTED INCOME.—
‘‘(1) IN GENERAL.—For purposes of subpart A of this part,
if any amount is includible in the gross income of a domestic
corporation under section 951A, such domestic corporation shall
be deemed to have paid foreign income taxes equal to 80 percent
of the product of—
‘‘(A) such domestic corporation’s inclusion percentage,
multiplied by
‘‘(B) the aggregate tested foreign income taxes paid
or accrued by controlled foreign corporations.
‘‘(2) INCLUSION PERCENTAGE.—For purposes of paragraph
(1), the term ‘inclusion percentage’ means, with respect to any
domestic corporation, the ratio (expressed as a percentage)
of—
‘‘(A) such corporation’s global intangible low-taxed
income (as defined in section 951A(b)), divided by
‘‘(B) the aggregate amount described in section
951A(c)(1)(A) with respect to such corporation.
‘‘(3) TESTED FOREIGN INCOME TAXES.—For purposes of para-
graph (1), the term ‘tested foreign income taxes’ means, with
respect to any domestic corporation which is a United States
shareholder of a controlled foreign corporation, the foreign
income taxes paid or accrued by such foreign corporation which
are properly attributable to the tested income of such foreign
corporation taken into account by such domestic corporation
under section 951A.’’.
(2) APPLICATION OF FOREIGN TAX CREDIT LIMITATION.—
(A) SEPARATE BASKET FOR GLOBAL INTANGIBLE LOW-
TAXED INCOME.—Section 904(d)(1) is amended by redesig-
nating subparagraphs (A) and (B) as subparagraphs (B)
and (C), respectively, and by inserting before subparagraph
(B) (as so redesignated) the following new subparagraph:
‘‘(A) any amount includible in gross income under sec-
tion 951A (other than passive category income),’’.
(B) EXCLUSION FROM GENERAL CATEGORY INCOME.—
Section 904(d)(2)(A)(ii) is amended by inserting ‘‘income
described in paragraph (1)(A) and’’ before ‘‘passive category
income’’.
(C) NO CARRYOVER OR CARRYBACK OF EXCESS TAXES.—
Section 904(c) is amended by adding at the end the fol-
lowing: ‘‘This subsection shall not apply to taxes paid or
accrued with respect to amounts described in subsection
(d)(1)(A).’’.

dkrause on DSKBC28HB2PROD with PUBLAWS VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00160 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097