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TITLE 26-INTERNAL REVENUE CODE 1964-Subsec. (b)(3)(C), (D)(i). Pub. L. 88-272, § 229(a)(1), (2), substituted "45 days" for "30 days" in pars, (C) and (D)(i). Subsec. (d). Pub. L. 88-272, § 229(b), added subsec. (d). 1960-Subsec. (a). Pub. L. 86-779. § 10(b)(2), substi- tuted "this part" for "this subchapter". Subsec. (b)(3)(C). Pub. L. 86-779, § 10(b)(3), substi- tuted "For purposes of this part, a capital gain divi- dend is" for "A capital gain dividend means". 1958-Subsec. (a). Pub. L. 85-868, § 101(a), inserted "(other than subsection (c) of this section)". Subsec. (b)(4). Pub. L. 85-866, § 39(a), added subsec. (b)(4). Subsec. (c). Pub. L. 85-866, § 101(b), added sentence defining regulated investment company. 1956-Subsec. (b)(3)(D). Act July 11, 1956, added subsec. (b)(3)(D). EFFECTIVE DATE OF 1976 AMENDMENT Section 1402(b)(1) of Pub. 1.. 94-455 provided in part that the substitution of "9 months" for "6 months" in subsec. (b)(3)(B), (4) of this section by section 1402(b)(1)(N) of Pub. L. 94-455 is effective with re- spect to taxable years beginning in 1977. Amendment of subsecs. (a)(1), (b)(1), (2)(A), (3)(A). (C). (d) by section 1901(a)(110)(A), (C), (b)(1)(V), (6)(H), (33)(I). (J)(i), (ii), (N), respectively, of Pub. L. 94-455 effective for taxable years beginning after Dec. 31. 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. Section 1901(a)(110)(B)(i) of Pub. L. 94-455 pro- vided that: "The amendment made by clause (i) [amending subsec. (b)(3)(D)(iii) of this section] shall not be considered to affect the amount of any increase in the basis of stock under the provisions of section 852(b)(3)(D)(iii) of the Internal Revenue Code of 1954 [subsec. (b)(3)(D)tdli) of this section] which is based upon amounts subject to tax under section 1201 of such Code [section 1201 of this title] in taxable years beginning before January 1, 1975." Section 2137(e) of Pub. L. 94-455 provided that: "The amendments made by this section [amending subsecs. (a)(1), (b)(2)(D), (5) of this section and enact- ing sections 103(g)(24) and 265(3), (4) of this title] shall apply to taxable years beginning after December 31, 1975." EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91-172 applicable with re- spect to taxable years beginning after Dec. 31, 1969, see section 511(d) of Pub. L. 91-172, set out as an Ef- fective Date note under section 1201 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Section 229(c) of Pub. L. 88-272 provided that: "The amendments made by subsection (a) [amending sec- tions 852(b), 853, 854(b)(2), and 855 of this title] shall apply to taxable years of regulated investment compa- nies ending on or after the date of the enactment of this Act (Feb. 26, 1964]. The amendment made by sub- section (b) [adding subsec. (d) of this section] shall apply to taxable years of regulated investment compa- nies ending after December 31, 1963." EFFECTIVE DATE OF 1960 AMENDmENr Amendment of section by Pub. L. 86-779 applicable with respect to taxable years of real estate investment trusts beginning after Dec. 31, 1960, see section 10(k) of Pub. L. 86-779, set out as an Effective Date note under section 856 of this title. EFFECTIVE DATE OF 1958 AMENDMENT Section 39(b) of Pub. L. 85-866 provided that: "The amendment made by subsection (a) [adding subsec. (b)(4) of this section] shall apply with respect to tax- able years ending after December 31, 1957, but only with respect to shares of stock acquired after Decem- ber 31. 1957." Section 101(c) of Pub. L. 85-866 provided that: "The amendments made by this section [to subsecs. (a) and (c) of this section] shall apply with respect to taxable years of regulated investment companies beginning on or after March 1, 1958." EFFECTIVE DATE OF 1956 AMENDMENT Section 2(b) of act July 11, 1956, provided that: "The amendment made by this section (adding subpar. (D) to subsec. (b)(3) of this section] shall apply only with respect to taxable years of regulated investment com- panies beginning after December 31, 1956'." CROss RmIR'ENCES Doubling of tax rate on citizens and corporations of certain foreign countries, see section 891 of this title. SECTION RERRED TO IN OTHER SECTIONS This section is referred to in sections 48, 58, 103, 443, 853. 854, 891. 1201 of this title. SECTION REFERRED TO IN D.C. CODE This section is referred to in section 47-1557b of the District of Columbia Code. § 853. Foreign tax credit allowed to shareholders (a) General rule A regulated investment company- (1) more than 50 percent of the value (as defined in section 851(c)(4)) of whose total assets at the close of the taxable year consists of stock or securities in foreign corporations, and (2) which meets the requirements of section 852(a) for the taxable year, may, for such taxable year, elect the applica- tion of this section with respect to income, war profits, and excess profits taxes described in section 901(b)(1), which are paid by the invest- ment company during such taxable year to for- eign countries and possessions of the United States. (b) Effect of election If the election provided in subsection (a) is ef- fective for a taxable year- (1) the regulated investment company- (A) shall not, with respect to such taxable year, be allowed a deduction under section 164(a) or a credit under section 901 for taxes to which subsection (a) is applicable, and (B) shall be allowed as an addition to the dividends paid deduction for such taxable year the amount of such taxes; (2) each shareholder of such Investment company shall- (A) include in gross income and treat as paid by him his proportionate share of such taxes, and (B) treat as gross income from sources within the respective foreign countries and possessions of the United States, for pur- poses of applying subpart A of part III of subchapter N, the sum of his proportionate share of such taxes and the portion of any dividend paid by such investment company which represents income derived from sources within foreign countries or posses- sions of the United States. § 853 Page 541