Page 176 - Tax Reform

131 STAT. 2226 PUBLIC LAW 115–97—DEC. 22, 2017

‘‘(5) ELECTION TO INCREASE PERCENTAGE OF TAXABLE
INCOME TREATED AS FOREIGN SOURCE.—
‘‘(A) IN GENERAL.—If any pre-2018 unused overall
domestic loss is taken into account under paragraph (1)
for any applicable taxable year, the taxpayer may elect
to have such paragraph applied to such loss by substituting
a percentage greater than 50 percent (but not greater than
100 percent) for 50 percent in subparagraph (B) thereof.
‘‘(B) PRE-2018 UNUSED OVERALL DOMESTIC LOSS.—For
purposes of this paragraph, the term ‘pre-2018 unused
overall domestic loss’ means any overall domestic loss
which—
‘‘(i) arises in a qualified taxable year beginning
before January 1, 2018, and
‘‘(ii) has not been used under paragraph (1) for
any taxable year beginning before such date.
‘‘(C) APPLICABLE TAXABLE YEAR.—For purposes of this
paragraph, the term ‘applicable taxable year’ means any
taxable year of the taxpayer beginning after December
31, 2017, and before January 1, 2028.’’.
26 USC 904 note. (b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after December 31, 2017.
PART II—INBOUND TRANSACTIONS

SEC. 14401. BASE EROSION AND ANTI-ABUSE TAX.
26 USC 59A prec. (a) IMPOSITION OF TAX.—Subchapter A of chapter 1 is amended
by adding at the end the following new part:
‘‘PART VII—BASE EROSION AND ANTI-ABUSE
TAX

‘‘Sec. 59A. Tax on base erosion payments of taxpayers with substantial gross re-
ceipts.
26 USC 59A. ‘‘SEC. 59A. TAX ON BASE EROSION PAYMENTS OF TAXPAYERS WITH
SUBSTANTIAL GROSS RECEIPTS.
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed on each
applicable taxpayer for any taxable year a tax equal to the base
erosion minimum tax amount for the taxable year. Such tax shall
be in addition to any other tax imposed by this subtitle.
‘‘(b) BASE EROSION MINIMUM TAX AMOUNT.—For purposes of
this section—
‘‘(1) IN GENERAL.—Except as provided in paragraphs (2)
and (3), the term ‘base erosion minimum tax amount’ means,
with respect to any applicable taxpayer for any taxable year,
the excess (if any) of—
‘‘(A) an amount equal to 10 percent (5 percent in the
case of taxable years beginning in calendar year 2018)
of the modified taxable income of such taxpayer for the
taxable year, over
‘‘(B) an amount equal to the regular tax liability (as
defined in section 26(b)) of the taxpayer for the taxable
year, reduced (but not below zero) by the excess (if any)
of— such regular tax liability, over
dkrause on DSKBC28HB2PROD with PUBLAWS VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00174 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097
‘‘(i) the credits allowed under this chapter against