Public Law 119-73 (01/23/2026)

26 U.S.C. § 199

Repealed. Pub. L. 115–97, title I, § 13305(a), Dec. 22, 2017, 131 Stat. 2126]

Pub. L. 108–357, title I, § 102(a)118 Stat. 1424Pub. L. 109–135, title IV, § 403(a)(1)119 Stat. 2615–2619Pub. L. 109–222, title V, § 514(a)120 Stat. 366Pub. L. 109–432, div. A, title IV, § 401(a)120 Stat. 2953Pub. L. 110–343, div. B, title IV, § 401(a)122 Stat. 3851Pub. L. 111–312, title VII, § 746(a)124 Stat. 3319Pub. L. 112–240, title III, § 318(a)126 Stat. 2331Pub. L. 113–295, div. A, title I, § 130(a)128 Stat. 4018Pub. L. 114–113, div. P, title III, § 305(a)129 Stat. 3040Section, added , , ; amended –(13), , ; , (b), , ; , , ; , (b), div. C, title III, § 312(a), title V, § 502(c), , , 3869, 3876; , , ; , , ; , title II, §§ 219(b), 221(a)(37), , , 4035, 4043; , div. Q, title I, § 170(a), , , 3069, related to deduction of income attributable to domestic production activities.

Subsection (c)(3)(C) of this Section Prior to Repeal

section 13305(a) of Pub. L. 115–97Prior to repeal by , subsection (c)(3)(C) of this section read as follows:

(c) Qualified production activities income

(3) Special rules for determining costs

(C) Transportation costs of independent refiners

(i) In general

In the case of any taxpayer who is in the trade or business of refining crude oil and who is not a major integrated oil company (as defined in section 167(h)(5)(B), determined without regard to clause (iii) thereof) for the taxable year, in computing oil related qualified production activities income under subsection (d)(9)(B), the amount allocated to domestic production gross receipts under paragraph (1)(B) for costs related to the transportation of oil shall be 25 percent of the amount properly allocable under such paragraph (determined without regard to this subparagraph).

(ii) Termination

Clause (i) shall not apply to any taxable year beginning after December 31, 2021.

See Amendment Relating to Consolidated Appropriations Act, 2016 note below.

Subsection (d)(8) of this Section Prior to Repeal

section 13305(a) of Pub. L. 115–97Prior to repeal by , subsection (d)(8) of this section read as follows:

(d) Definitions and special rules

(8) Treatment of activities in Puerto Rico

(A) In general

In the case of any taxpayer with gross receipts for any taxable year from sources within the Commonwealth of Puerto Rico, if all of such receipts are taxable under section 1 or 11 for such taxable year, then for purposes of determining the domestic production gross receipts of such taxpayer for such taxable year under subsection (c)(4), the term “United States” shall include the Commonwealth of Puerto Rico.

(B) Special rule for applying wage limitation

In the case of any taxpayer described in subparagraph (A), for purposes of applying the limitation under subsection (b) for any taxable year, the determination of W–2 wages of such taxpayer shall be made without regard to any exclusion under section 3401(a)(8) for remuneration paid for services performed in Puerto Rico.

(C) Termination

This paragraph shall apply only with respect to the first 11 taxable years of the taxpayer beginning after December 31, 2005, and before January 1, 2017.

See Extension of Deduction Allowable With Respect to Income Attributable to Domestic Production Activities in Puerto Rico note below.

Statutory Notes and Related Subsidiaries

Effective Date of Repeal

section 13305(c) of Pub. L. 115–97section 74 of this titleRepeal applicable to taxable years beginning after , except as provided by transition rule, see , set out as an Effective Date of 2017 Amendment note under .

Amendment Relating to Consolidated Appropriations Act, 2016

Pub. L. 115–141, div. U, title I, § 102132 Stat. 1169

“(a)

Amendment Relating to Section of Division P 305.—

Public Law 115–97For purposes of applying section 199(c)(3)(C)(i) of the Internal Revenue Code of 1986 (as in effect before its repeal by ) [see Subsection (c)(3)(C) of this Section Prior to Repeal note above] to taxable years beginning after , and before , such section shall be applied—
“(1)
by inserting ‘who elects the application of this clause for any taxable year,’ after ‘In the case of any taxpayer’,
“(2)
by substituting ‘, and who’ for ‘and who’,
“(3)
by substituting ‘such taxable year’ for ‘the taxable year’, and
“(4)
by substituting ‘(as defined in subsection (d)(9)(B))’ for ‘under subsection (d)(9)(B)’.
“(b)

Effective Date .—

Pub. L. 114–113The amendment made by this section [amending this section] shall take effect as if included in section 305 of division P of the Consolidated Appropriations Act, 2016 [].”
, , , provided that:

Extension of Deduction Allowable With Respect to Income Attributable to Domestic Production Activities in Puerto Rico

Pub. L. 115–123, div. D, title I, § 40309132 Stat. 146

“For purposes of applying section 199(d)(8)(C) of the Internal Revenue Code of 1986 [see Subsection (d)(8) of this Section Prior to Repeal note above] with respect to taxable years beginning during 2017, such section shall be applied—
“(1)
by substituting ‘first 12 taxable years’ for ‘first 11 taxable years’, and
“(2)
by substituting ‘’ for ‘’.”
, , , provided that: