Sec. 5. Current year inclusion of net CFC tested income
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Section 951A(a) of the Internal Revenue Code of 1986 is amended by striking global intangible low-taxed income and inserting net CFC tested income . Section 951A of such Code is amended by striking subsections
(b)and (d). Section 951A(e)(1) of such Code is amended by striking subsections (b), (c)(1)(A), and and inserting subsections (c)(1)(A) and . Section 951A(f) of such Code is amended to read as follows: Except as provided in paragraph (2), any net CFC tested income included in gross income under subsection
(a)shall be treated in the same manner as an amount included under section 951(a)(1)(A) for purposes of applying sections 168(h)(2)(B), 535(b)(10), 851(b), 904(h)(1), 959, 961, 962, 993(a)(1)(E), 996(f)(1), 1248(b)(1), 1248(d)(1), 6501(e)(1)(C), 6654(d)(2)(D), and 6655(e)(4). The Secretary shall provide rules for the application of paragraph
(1)to other provisions of this title in any case in which the determination of subpart F income is required to be made at the level of the controlled foreign corporation. . Section 960(d)(2)(A) of such Code is amended by striking global intangible low-taxed income (as defined in section 951A(b)) and inserting net CFC tested income (as defined in section 951A(c)) . Part VIII of subchapter B of chapter 1 of such Code is amended by striking section 250 (and by striking the item relating to such section in the table of sections of such part). Section 59A(c)(4)(B)(i) of such Code is amended by striking section 172, 245A, or 250 and inserting section 172 or 245A . Section 172(d) of such Code is amended by striking paragraph (9). Section 246(b)(1) of such Code is amended— by striking subsection
(a)and
(b)of section 245, and section 250 and inserting and subsection
(a)and
(b)of section 245 ; and by striking subsection
(a)and
(b)of section 245, and 250 and inserting and subsection
(a)and
(b)of section 245 . Section 469(i)(3)(F)(iii) is amended by striking 222, and 250 and inserting and 222 . Section 951A(c)(2)(A)(i) of such Code is amended by redesignating subclauses
(IV)and
(V)as subclauses
(V)and (VI), respectively, and by inserting after subclause
(III)the following new subclause: any item of income subject to an effective rate of income tax imposed by a foreign country greater than the maximum rate of tax specified in section 11, . Section 951A(c)(2)(A)(i) of such Code, as amended by subsection
(c)is amended— by adding and at the end of subclause (IV); by striking and at the end of subclause
(V)and inserting over ; and by striking subclause (VI). Section 960(d) of such Code is amended by striking 80 percent of . Section 78 of such Code is amended by striking (determined without regard to the phrase “80 percent of” in subsection (d)(1) thereof) . Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2019, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. The amendments made by subsections
(b)and
(e)shall apply to taxable years beginning after December 31, 2019.