Page 166 - Tax Reform

131 STAT. 2216 PUBLIC LAW 115–97—DEC. 22, 2017

‘‘(D) RELATED PARTY.—For purposes of this paragraph,
the term ‘related party’ means any member of an affiliated
group as defined in section 1504(a), determined—
‘‘(i) by substituting ‘more than 50 percent’ for ‘at
least 80 percent’ each place it appears, and
‘‘(ii) without regard to paragraphs (2) and (3) of
section 1504(b).
Any person (other than a corporation) shall be treated
as a member of such group if such person is controlled
by members of such group (including any entity treated
as a member of such group by reason of this sentence)
or controls any such member. For purposes of the preceding
sentence, control shall be determined under the rules of
section 954(d)(3).
‘‘(E) SOLD.—For purposes of this subsection, the terms
‘sold’, ‘sells’, and ‘sale’ shall include any lease, license,
exchange, or other disposition.
‘‘(c) REGULATIONS.—The Secretary shall prescribe such regula-
tions or other guidance as may be necessary or appropriate to
carry out the provisions of this section.’’.
(b) CONFORMING AMENDMENTS.—
26 USC 172. (1) Section 172(d), as amended by this Act, is amended
by adding at the end the following new paragraph:
‘‘(9) DEDUCTION FOR FOREIGN-DERIVED INTANGIBLE
INCOME.—The deduction under section 250 shall not be
allowed.’’.
(2) Section 246(b)(1) is amended—
(A) by striking ‘‘and subsection (a) and (b) of section
245’’ the first place it appears and inserting ‘‘, subsection
(a) and (b) of section 245, and section 250’’,
(B) by striking ‘‘and subsection (a) and (b) of section
245’’ the second place it appears and inserting ‘‘subsection
(a) and (b) of section 245, and 250’’.
(3) Section 469(i)(3)(F)(iii) is amended by striking ‘‘and
222’’ and inserting ‘‘222, and 250’’.
(4) The table of sections for part VIII of subchapter B
26 USC 241 prec. of chapter 1 is amended by adding at the end the following
new item:

‘‘Sec. 250. Foreign-derived intangible income and global intangible low-taxed in-
come.’’.
26 USC 172 note. (c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2017.

CHAPTER 2—OTHER MODIFICATIONS OF SUBPART F
PROVISIONS

SEC. 14211. ELIMINATION OF INCLUSION OF FOREIGN BASE COMPANY
OIL RELATED INCOME.
(a) REPEAL.—Subsection (a) of section 954 is amended—
(1) by inserting ‘‘and’’ at the end of paragraph (2),
(2) by striking the comma at the end of paragraph (3)
and inserting a period, and
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(3) by striking paragraph (5).
(b) CONFORMING AMENDMENTS.—