Allowance of credit
A nonresident alien individual or a foreign corporation engaged in trade or business within the United States during the taxable year shall be allowed a credit under section 901 for the amount of any income, war profits, and excess profits taxes paid or accrued during the taxable year to any foreign country or possession of the United States with respect to income effectively connected with the conduct of a trade or business within the United States.
Special rules
Pub. L. 89–809, title I, § 106(a)(1)80 Stat. 1568Pub. L. 98–369, div. A, title VIII, § 801(d)(3)98 Stat. 996Pub. L. 99–514, title XII, § 1241(c)100 Stat. 2580Pub. L. 100–647, title I, § 1012(q)(10)102 Stat. 3524Pub. L. 110–172, § 11(g)(11)121 Stat. 2490Pub. L. 115–97, title I, § 14301(c)(22)131 Stat. 2223(Added , , ; amended , , ; , title XVIII, § 1876(d)(3), , , 2899; , , ; , , ; , (23), , .)
Editorial Notes
Amendments
Pub. L. 115–97, § 14301(c)(22)2017—Subsec. (a). , struck out “(or deemed, under section 902, paid or accrued during the taxable year)” after “paid or accrued during the taxable year”.
Pub. L. 115–97, § 14301(c)(23)Subsec. (b)(4), (5). , struck out pars. (4) and (5) which read as follows:
“(4) For purposes of sections 902(a) and 78, a foreign corporation choosing the benefits of this subpart which receives dividends shall, with respect to such dividends, be treated as a domestic corporation.
“(5) For purposes of section 902, any income, war profits, and excess profits taxes paid or accrued (or deemed paid or accrued) to any foreign country or possession of the United States with respect to income effectively connected with the conduct of a trade or business within the United States shall not be taken into account, and any accumulated profits attributable to such income shall not be taken into account.”
Pub. L. 110–1722007—Subsec. (b)(5) to (7). redesignated pars. (6) and (7) as (5) and (6), respectively, and struck out former par. (5) which read as follows: “No credit shall be allowed under this section for any income, war profits, and excess profits taxes paid or accrued with respect to the foreign trade income (within the meaning of section 923(b)) of a FSC.”
Pub. L. 100–6471988—Subsec. (b)(6), (7). redesignated par. (6), relating to credit against tax imposed by section 884, as (7).
Pub. L. 99–514, § 1876(d)(3)1986—Subsec. (b)(6). , added par. (6) relating to credit for income, war profits, and excess profits taxes paid or accrued to a foreign country or possession of the United States.
Pub. L. 99–514, § 1241(c), added par. (6) relating to credit against tax imposed by section 884.
Pub. L. 98–3691984—Subsec. (b)(5). added par. (5).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Pub. L. 115–97section 14301(d) of Pub. L. 115–97section 78 of this titleAmendment by applicable to taxable years of foreign corporations beginning after , and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see , set out as a note under .
Effective Date of 1988 Amendment
Pub. L. 100–647Pub. L. 99–514section 1019(a) of Pub. L. 100–647section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .
Effective Date of 1986 Amendment
section 1241(c) of Pub. L. 99–514section 1241(e) of Pub. L. 99–514section 884 of this titleAmendment by applicable to taxable years beginning after , see , set out as an Effective Date note under .
section 1876(d)(3) of Pub. L. 99–514Pub. L. 98–369, div. Asection 1881 of Pub. L. 99–514section 48 of this titleAmendment by effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, , to which such amendment relates, see , set out as a note under .
Effective Date of 1984 Amendment
Pub. L. 98–369section 805(a)(1) of Pub. L. 98–369section 245 of this titleAmendment by applicable to transactions after , in taxable years ending after such date, see , as amended, set out as a note under .
Effective Date
section 904 of this titlesection 106(a)(6) of Pub. L. 89–809section 874 of this titleSection applicable with respect to taxable years beginning after , and, in applying with respect to this section, no amount to be carried from or to any taxable year beginning before , and no such year to be taken into account, see , set out as an Effective Date of 1966 Amendment note under .
Plan Amendments Not Required Until January 1, 1989
Pub. L. 99–514section 1140 of Pub. L. 99–514section 401 of this titleFor provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , as amended, set out as a note under .