Sec. 14505. Repeal of exclusion applicable to certain passenger aircraft operated by a foreign corporation
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/bill/115/s/1/pcs/section-14505·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 883 is amended— by striking Gross income in subsection (a)(2) and inserting Except as provided in subsection (d), gross income , and by adding at the end the following new subsection: Subsection (a)(2) shall not apply to any corporation operating a passenger airline if— the corporation is organized in a foreign country the residents of which are not eligible for a reduced rate of tax or an exemption from tax under section 881 or 882, and such foreign country has fewer than 2 arrivals and departures, per week, from passenger airline carriers which— are organized under the laws of the United States or any State, and have annual gross operational revenues of more than $1,000,000,000.
For purposes of subparagraph (B), an aircraft that lands in one country and subsequently departs from that country shall be treated as having engaged in 1 arrival and departure. In the case of any calendar year beginning after 2018, the dollar amount in subparagraph (A)(ii) shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2017 for calendar year 2016 in subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $1,000,000. . The amendments made by this section shall apply to taxable years beginning after December 31, 2017.