Sec. 3001. 25-percent corporate tax rate
1,049 words·~5 min read·
/bill/113/hr/1/ih/section-3001·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subsection
(b)of section 11 is amended to read as follows: Except as provided in paragraph (2), the amount of the tax imposed by subsection
(a)shall be 25 percent of taxable income. In the case of taxable years beginning before 2019, the amount of tax imposed by subsection
(a)shall be the sum of— 25 percent of so much of the taxable income as does not exceed $75,000, and the applicable percentage of so much of taxable income as exceeds $75,000. For purposes of this paragraph, the applicable percentage shall be determined in accordance with the following table: In the case of taxable years beginning during calendar year The applicable percentage is: 2015 33% 2016 31% 2017 29% 2018 27% . Paragraphs (2)(B) and (6)(A)(ii) of section 860E(e) are each amended by striking section 11(b)(1) and inserting section 11(b) . Part I of subchapter P of chapter 1 is amended by striking section 1201 (and by striking the item relating to such section in the table of sections for such part). Section 13, as amended and redesignated by the preceding provisions of this Act, is amended by striking paragraphs
(4)and (6), and by redesignating paragraph
(5)as paragraph (4). Section 527(b) is amended— by striking paragraph (2), and by striking all that precedes is hereby imposed and inserting: A tax . Sections 594(a) is amended by striking taxes imposed by section 11 or 1201(a) and inserting tax imposed by section 11 . Section 691(c)(4) is amended by striking 1201, . Section 801(a) is amended— by striking paragraph (2), and by striking all that precedes is hereby imposed and inserting: A tax . Section 831(d) is amended by striking paragraph
(1)and by redesignating paragraphs
(2)and
(3)as paragraphs
(1)and (2), respectively. Sections 832(c)(5) and 834(b)(1)(D) are each amended by striking sec. 1201 and following, . Section 852(b)(3)(A) is amended by striking section 1201(a) and inserting section 11(b) . Section 857(b)(3) is amended— by striking subparagraph
(A)and redesignating subparagraphs
(B)through
(F)as subparagraphs
(A)through (E), respectively, in subparagraph (C), as so redesignated— by striking subparagraph (A)(ii) in clause
(i)thereof and inserting paragraph
(1), by striking the tax imposed by subparagraph (A)(ii) in clauses
(ii)and
(iv)thereof and inserting the tax imposed by paragraph
(1)on undistributed capital gain , in subparagraph (E), as so redesignated, by striking subparagraph
(B)or
(D)and inserting subparagraph
(A)or
(C), and by adding at the end the following new subparagraph: For purposes of this paragraph, the term undistributed capital gain means the excess of the net capital gain over the deduction for dividends paid (as defined in section 561) determined with reference to capital gain dividends only. . Section 882(a)(1) is amended by striking , or 1201(a) . Section 1374(b) is amended by striking paragraph (4). Section 1381(b) is amended by striking taxes imposed by section 11 or 1201 and inserting tax imposed by section 11 . Sections 6425(c)(1)(A)(i) and 6655(g)(1)(A)(i) are each amended by striking or 1201(a), . Section 1445(e)(1) is amended— by striking 35 percent and inserting the highest rate of tax in effect for the taxable year under section 11(b) , and by striking of the gain and inserting multiplied by the gain . Section 1445(e)(2) is amended by striking 35 percent of the amount and inserting the highest rate of tax in effect for the taxable year under section 11(b) multiplied by the amount . Section 1445(e)(6) is amended— by striking 35 percent and inserting the highest rate of tax in effect for the taxable year under section 11(b) , and by striking of the amount and inserting multiplied by the amount . Section 1446(b)(2)(B) is amended by striking section 11(b)(1) and inserting section 11(b) . Section 852(b)(1) is amended by striking the last sentence. Part I of subchapter B of chapter 5 is amended by striking section 1551 (and by striking the item relating to such section in the table of sections for such part). Section 535(c)(5) is amended to read as follows: For limitation on credit provided in paragraph
(2)or
(3)in the case of certain controlled corporations, see section 1561. . Section 1561, as amended by the preceding provisions of this Act, is amended to read as follows: The component members of a controlled group of corporations on a December 31 shall, for their taxable years which include such December 31, be limited for purposes of this subtitle to one $250,000 ($150,000 if any component member is a corporation described in section 535(c)(2)(B)) amount for purposes of computing the accumulated earnings credit under section 535(c)(2) and (3). Such amount shall be divided equally among the component members of such group on such December 31 unless the Secretary prescribes regulations permitting an unequal allocation of such amount. If a corporation has a short taxable year which does not include a December 31 and is a component member of a controlled group of corporations with respect to such taxable year, then for purposes of this subtitle, the amount to be used in computing the accumulated earnings credit under section 535(c)(2) and
(3)of such corporation for such taxable year shall be the amount specified in subsection
(a)with respect to such group, divided by the number of corporations which are component members of such group on the last day of such taxable year. For purposes of the preceding sentence, section 1563(b) shall be applied as if such last day were substituted for December 31. . The table of sections for part II of subchapter B of chapter 5 is amended by striking the item relating to section 1561 and inserting the following new item: Sec. 1561. Limitation on accumulated earnings credit in the case of certain controlled corporations. . Section 7874(e)(1)(B) is amended by striking section 11(b)(1) and inserting section 11(b) . Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2014. The amendments made by subsection (b)(3) shall apply to distributions made after December 31, 2014. The amendments made by subsection (b)(5) shall apply to transfers made after December 31, 2018. The amendments made by paragraphs
(4)and
(6)of subsection
(b)shall apply to taxable years beginning after December 31, 2018.