§ 1561. Limitation on accumulated earnings credit in the case of certain controlled corporations
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(a)In general 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.
(b)Certain short taxable years 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.
(Added Pub. L. 88–272, title II, § 235(a), Feb. 26, 1964, 78 Stat. 116; amended Pub. L. 91–172, title IV, § 401(a)(1), Dec. 30, 1969, 83 Stat. 599; Pub. L. 94–12, title III, §§ 303(c)(1), 304(b), Mar. 29, 1975, 89 Stat. 44, 45; Pub. L. 94–164, § 4(d)(1), Dec. 23, 1975, 89 Stat. 974; Pub. L. 94–455, title IX, § 901(c)(1), title XIX, §§ 1901(b)(1)(J)(v), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1607, 1791, 1834; Pub. L. 95–600, title III, § 301(b)(19), title VII, § 703(j)(7), Nov. 6, 1978, 92 Stat. 2823, 2941;
Pub. L. 97–34, title II, § 232(b)(3), Aug. 13, 1981, 95 Stat. 250; Pub. L. 97–248, title II, § 259(b), (c), Sept. 3, 1982, 96 Stat. 539; Pub. L. 98–369, div. A, title I, § 66(b), title II, § 211(b)(21), July 18, 1984, 98 Stat. 585, 756; Pub. L. 99–499, title V, § 516(b)(3), Oct. 17, 1986, 100 Stat. 1771; Pub. L. 99–514, title VII, § 701(e)(2), Oct. 22, 1986, 100 Stat. 2342; Pub. L. 100–647, title II, § 2004(l), Nov. 10, 1988, 102 Stat. 3606; Pub. L. 104–188, title I, § 1703(f), Aug. 20, 1996, 110 Stat. 1876;
Pub. L. 113–295, div. A, title II, § 221(a)(12)(H), Dec. 19, 2014, 128 Stat. 4038; Pub. L. 115–97, title I, §§ 12001(b)(16), 13001(b)(6)(A), Dec. 22, 2017, 131 Stat. 2094, 2098.)
Connections25 cite this · traces to 15
Cited by 25 sections · top 18
public-private-law
U.S. Code
statutes-at-large
- Public Law 94–164To change certain income tax provisions of the Internal Revenue Code of 1954, and for other purposes
- Public Law 94–12To amend the Internal Revenue Code of 1954 to provide for a refund of 1874 individual income taxes, to increase the low income allowance and the percentage standard deduction, to provide a credit for personal exemptions and a credit for certain earned income, to increase the investment credit and th
- Public Law 98–369To provide for tax reform, and for deficit reduction
- Public Law 97–34To amend the Internal Revenue Code of 1954 to encourage economic growth through reduction of the tax rates for individual taxpayers, acceleration of capital cost recovery of investment in plant, equipment, and real property, and incentives for savings, and for other purposes
- Public Law 95–600To amend the Internal Revenue Code of 1954 to reduce income taxes, and for other purposes
- Public Law 97–248To provide for tax equity and fiscal responsibility, and for other purposes
- Public Law 94–455To reform the tax laws of the United States
Traces to 15 documents
public-private-law
U.S. Code
- Tax imposed§ 11
- Tax imposed§ 1
- Carryback and carryforward of unused credits§ 39
- Adjustments in computing alternative minimum taxable income§ 56
- Alternative minimum tax imposed§ 55
- Limitation based on tax liability; definition of tax liability§ 26
- Tax imposed§ 801
- Accumulated taxable income§ 535
- Amount of credit§ 46
- Definitions and special rules§ 2
- Repealed. Pub. L. 91–172, title IV, § 401(a)(2), Dec. 30, 1969, 83 Stat. 600]§ 1562
- Acquisitions made to evade or avoid income tax§ 269
- Income from sources within the United States§ 861
78 references not yet in our index
- Pub. L. 88–272, title II, § 235(a)
- 78 Stat. 116
- Pub. L. 91–172, title IV, § 401(a)(1)
- 83 Stat. 599
- Pub. L. 94–12, title III
- 89 Stat. 44
- Pub. L. 94–164, § 4(d)(1)
- 89 Stat. 974
- Pub. L. 94–455, title IX, § 901(c)(1)
- 90 Stat. 1607
- Pub. L. 95–600, title III, § 301(b)(19)
- 92 Stat. 2823
- Pub. L. 97–34, title II, § 232(b)(3)
- 95 Stat. 250
- Pub. L. 97–248, title II, § 259(b)
- 96 Stat. 539
- Pub. L. 98–369, div. A, title I, § 66(b)
- 98 Stat. 585
- Pub. L. 99–499, title V, § 516(b)(3)
- 100 Stat. 1771
- Pub. L. 99–514, title VII, § 701(e)(2)
- 100 Stat. 2342
- Pub. L. 100–647, title II, § 2004
- 102 Stat. 3606
- Pub. L. 104–188, title I, § 1703(f)
- 110 Stat. 1876
- 128 Stat. 4038
- 131 Stat. 2094
- Pub. L. 104–188
- Pub. L. 100–647
- Pub. L. 99–514
- Pub. L. 99–499
- Pub. L. 98–369, § 211(b)(21)(A)
- Pub. L. 98–369, § 66(b)
- Pub. L. 98–369, § 211(b)(21)(B)
- Pub. L. 97–248, § 259(b)
- Pub. L. 97–248, § 259(c)
- Pub. L. 97–34
- Pub. L. 95–600, § 301(b)(19)(A)
- Pub. L. 95–600, § 301(b)(19)(B)
+ 38 more
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§ 1561
Limitation on accumulated earnings credit in the case of certain controlled corporations
Stat.×12
U.S.C.×9
C.F.R.×2
Pub. L.×1
Fed. Reg.×1
Pub. L.Pub. L. 88–272, title II, § 235(a)
Stat.78 Stat. 116
Pub. L.Pub. L. 91–172, title IV, § 401(a)(1)
Cites 93 · showing 12Cited by 25 across 5 sources