Page 172 - Tax Reform

131 STAT. 2222 PUBLIC LAW 115–97—DEC. 22, 2017

‘‘(B) have not been deemed to have been paid by a
domestic corporation under this section for the taxable
year or any prior taxable year.’’,
(2) and by adding after subsection (d) (as added by section
14201) the following new subsections:
‘‘(e) FOREIGN INCOME TAXES.—The term ‘foreign income taxes’
means any income, war profits, or excess profits taxes paid or
accrued to any foreign country or possession of the United States.
‘‘(f) 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.’’.
(c) CONFORMING AMENDMENTS.—
26 USC 78. (1) Section 78 is amended to read as follows:
‘‘SEC. 78. GROSS UP FOR DEEMED PAID FOREIGN TAX CREDIT.
‘‘If a domestic corporation chooses to have the benefits of sub-
part A of part III of subchapter N (relating to foreign tax credit)
for any taxable year, an amount equal to the taxes deemed to
be paid by such corporation under subsections (a), (b), and (d)
of section 960 (determined without regard to the phrase ‘80 percent
of’ in subsection (d)(1) thereof) for such taxable year shall be treated
for purposes of this title (other than sections 245 and 245A) as
a dividend received by such domestic corporation from the foreign
corporation.’’.
(2) Paragraph (4) of section 245(a) is amended to read
as follows:
‘‘(4) POST-1986 UNDISTRIBUTED EARNINGS.—The term ‘post-
1986 undistributed earnings’ means the amount of the earnings
and profits of the foreign corporation (computed in accordance
with sections 964(a) and 986) accumulated in taxable years
beginning after December 31, 1986—
‘‘(A) as of the close of the taxable year of the foreign
corporation in which the dividend is distributed, and
‘‘(B) without diminution by reason of dividends distrib-
uted during such taxable year.’’.
(3) Section 245(a)(10)(C) is amended by striking ‘‘902, 907,
and 960’’ and inserting ‘‘907 and 960’’.
(4) Sections 535(b)(1) and 545(b)(1) are each amended by
striking ‘‘section 902(a) or 960(a)(1)’’ and inserting ‘‘section
960’’.
(5) Section 814(f)(1) is amended—
(A) by striking subparagraph (B), and
(B) by striking all that precedes ‘‘No income’’ and
inserting the following:
‘‘(1) TREATMENT OF FOREIGN TAXES.—’’.
(6) Section 865(h)(1)(B) is amended by striking ‘‘902, 907,’’
and inserting ‘‘907’’.
(7) Section 901(a) is amended by striking ‘‘sections 902
and 960’’ and inserting ‘‘section 960’’.
(8) Section 901(e)(2) is amended by striking ‘‘but is not
limited to—’’ and all that follows through ‘‘that portion’’ and
inserting ‘‘but is not limited to that portion’’.
(9) Section 901(f) is amended by striking ‘‘sections 902
and 960’’ and inserting ‘‘section 960’’.
(10) Section 901(j)(1)(A) is amended by striking ‘‘902 or’’.
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(11) Section 901(j)(1)(B) is amended by striking ‘‘sections
902 and 960’’ and inserting ‘‘section 960’’.