Sec. 4101. Repeal of section 902 indirect foreign tax credits; determination of section 960 credit on current year basis
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Subpart A of part III of subchapter N of chapter 1 is amended by striking section 902. Section 960 is amended— by striking subsection (c), by redesignating subsection
(b)as subsection (c), by striking all that precedes subsection
(c)(as so redesignated) and inserting the following: For purposes of this subpart, if there is included in the gross income of a domestic corporation any item of income under section 951(a)(1) with respect to any controlled foreign corporation with respect to which such domestic corporation is a United States shareholder, such domestic corporation shall be deemed to have paid so much of such foreign corporation’s foreign income taxes as are properly attributable to the item of income so included. For purposes of this subpart— If any portion of a distribution from a controlled foreign corporation to a domestic corporation which is a United States shareholder with respect to such controlled foreign corporation is excluded from gross income under section 959(a), such domestic corporation shall be deemed to have paid so much of such foreign corporation’s foreign income taxes as— are properly attributable to such portion, and have not been deemed to have to been paid by such domestic corporation under this section for any prior taxable year. If section 959(b) applies to any portion of a distribution from a controlled foreign corporation to another controlled foreign corporation, such controlled foreign corporation shall be deemed to have paid so much of such other controlled foreign corporation’s foreign income taxes as— are properly attributable to such portion, and have not been deemed to have been paid by a domestic corporation under this section for any prior taxable year. , and by adding after subsection
(c)(as so redesignated) the following new subsections: 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. The Secretary shall provide such regulations as may be necessary or appropriate to carry out the provisions of this section. . Section 78 is amended to read as follows: If a domestic corporation chooses to have the benefits of subpart 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 section 960 (relating to deemed paid credit for subpart F inclusions) for such taxable year shall be treated for purposes of this title (other than section 960) as an item of income required to be included in the gross income of such domestic corporation under section 951(a). . Section 245(a)(10) is amended by striking 902, . Sections 535(b)(1) and 545(b)(1) are each amended by striking section 902(a) or 960(a)(1) and inserting section 960 . Paragraph
(1)of section 814(f) is amended— by striking subparagraph (B), and by striking all that precedes No income and inserting the following: . Subparagraph
(B)of section 864(h)(1) is amended by striking 902, . Subsection
(a)of section 901 is amended by striking sections 902 and 960 and inserting section 960 . Paragraph
(2)of section 901(e) 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 . Subsection
(f)of section 901 is amended by striking sections 902 and 960 and inserting section 960 . Subparagraph
(A)of section 901(j)(1) is amended by striking 902 or . Subparagraph
(B)of section 901(j)(1) is amended by striking sections 902 and 960 and inserting section 960 . Paragraph
(2)of section 901(k) is amended by striking 902, . Paragraph
(6)of section 901(k) is amended by striking 902 or . Subparagraph
(A)of section 904(h)(10) is amended by striking sections 902, 907, and 960 and inserting sections 907 and 960 . Section 904 is amended by striking subsection (k). Paragraph
(1)of section 905(c) is amended by striking the last sentence. Subclause
(I)of section 905(c)(2)(B)(i) is amended by striking section 902 or . Subsection
(a)of section 906 is amended by striking (or deemed, under section 902, paid or accrued during the taxable year) . Subsection
(b)of section 906 is amended by striking paragraphs
(4)and (5). Subparagraph
(B)of section 907(b)(2) is amended by striking 902 or . Paragraph
(3)of section 907(c) is amended— by striking subparagraph
(A)and redesignating subparagraphs
(B)and
(C)as subparagraphs
(A)and (B), respectively, and by striking section 960(a) in subparagraph
(A)(as so redesignated) and inserting section 960 . Paragraph
(5)of section 907(c) is amended by striking 902 or . Clause
(i)of section 907(f)(2)(B) is amended by striking 902 or . Subsection
(a)of section 908 is amended by striking 902 or . Subsection
(b)of section 909 is amended— by striking section 902 corporation in the matter preceding paragraph
(1)and inserting specified 10-percent owned foreign corporation , by striking 902 or in paragraph (1), by striking by such section 902 corporation and all that follows in the matter following paragraph
(2)and inserting by such specified 10-percent owned foreign corporation or a domestic corporation which is a United States shareholder with respect to such specified 10-percent owned foreign corporation. , and by striking in the heading thereof and inserting section 902 corporations . specified 10-percent owned foreign corporations Subsection
(d)of section 909 is amended by striking paragraph (5). Paragraph
(1)of section 958(a) is amended by striking 960(a)(1) and inserting 960 . Subsection
(d)of section 959 is amended by striking Except as provided in section 960(a)(3), any and inserting Any . Subsection
(e)of section 959 is amended by striking and section 960(b) . Subparagraph
(A)of section 1291(g)(2) is amended by striking any distribution— and all that follows through but only if and inserting any distribution, any withholding tax imposed with respect to such distribution, but only if . Section 1293 is amended by striking subsection (f). Subparagraph
(B)of section 6038(c)(1) is amended by striking sections 902 (relating to foreign tax credit for corporate stockholder in foreign corporation) and 960 (relating to special rules for foreign tax credit) and inserting section 960 . Paragraph
(4)of section 6038(c) is amended by striking subparagraph (C). The table of sections for subpart A of part III of subchapter N of chapter 1 is amended by striking the item relating to section 902. The table of sections for subpart F of part III of subchapter N of chapter 1 is amended by striking the item relating to section 960 and inserting the following: Sec. 960. Deemed paid credit for subpart F inclusions. . The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2014, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end.