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TITLE 26-INTERNAL REVENUE CODE 0 TAXABLE YEARS AFTER 1977 Pub. L. 94-455, title X. §§ 1052(c)(7), 1053(d)(5), Oct. 4, 1976, 90 Stat. 1648, 1649, struck out subpart C relat- ing to Western Hemisphere trade corporations, appli- cable to taxable years beginning after Dec. 31, 1979, and subpart E relating to China Trade Act corpora- tions applicable to taxable years beginning after Dec. 31, 1977. AMENDMENTS 1976-Pub. L. 94-455, title X, § 1012(b)(3)(B), Oct. 4. 1976, 90 Stat. 1614, deleted subpart 0 from this analy- sis without a corresponding repeal of the text in such subpart. 1966-Pub. L. 89-809, title I, § 105(e)(2), Nov. 13, 1966, 80 Stat. 1567, added the heading of subpart H. 1962-Pub. L. 87-834, § 12(b)(3), Oct. 16, 1962, 76 Stat. 1031, added the headings of subparts F and G. SUBPART A-FOREIGN TAX CREDIT Sec. 901. Taxes of foreign countries and of possessions of United States. 902. Credit for corporate stockholder in foreign corpo- ration. 903. Credit for taxes in lieu of income, etc,, taxes. 904. Limitation on credit. 905. Applicable rules. 906. Nonresident alien individuals and foreign corpo- rations. 907. Special rules in case of foreign oil and gas income. 908. Reduction of credit for participation in or cooper- ation with an international boycott. AMENDMENTS 1976-Pub. L. 94-455, title X, § 1061(b), Oct. 4, 1976, 90 Stat. 1650, added item 908. 1975-Pub. L. 94-12, title VI, § 601(c), Mar. 29, 1975, 89 Stat. 57, added item 907. 1966-Pub. L. 89-809, title I, § 106(a)(2), Nov. 13, 1966, 80 Stat. 1569, added item 906. SUBPART REFERRED TO IN OTHER SECTIONS This subpart is referred to in sections 78, 172, 1351 of this title. § 901. Taxes of foreign countries and of possessions of United States (a) Allowance of credit If the taxpayer chooses to have the benefits of this subpart, the tax imposed by this chapter shall, subject to the limitation of section 904, be credited with the amounts provided in the ap- plicable paragraph of subsection (b) plus, in the case of a corporation, the taxes deemed to have been paid under sections 902 and 960. Such choice for any taxable year may be made or changed at any time before the expiration of the period prescribed for making a claim for credit or refund of the tax imposed by this chapter for such taxable year. The credit shall not be allowed against the tax imposed by sec- tion 56 (relating to minimum tax for tax prefer- ences), against the tax imposed for the taxable year under section 72(m)(5)(B) (relating to 10 percent tax on premature distributions to owner-employees), against the tax imposed by section 402(e) (relating to tax on lump sum dis- tributions), against the tax imposed for the tax- able year by section 408(f) (relating to addition- al tax on income from certain retirement ac- counts), against the tax imposed by section 531 (relating to the tax on accumulated earnings), against the additional tax imposed for the tax- able year under section 1351 (relating to recov- eries of foreign expropriation losses), or against the personal holding company tax imposed by section 541. (b) Amount allowed Subject to the limitation of section 904, the following amounts shall be allowed as the credit under subsection (a): (1) Citizens and domestic corporations In the case of a citizen of the United States and of a domestic corporation, the amount of any income, war profits, and excess profits taxes paid or accrued during the taxable year to any foreign country or to any possession of the United States; and (2) Resident of the United States or Puerto Rico In the case of a resident of the United States and in the case of an individual who is a bona fide resident of Puerto Rico during the entire taxable year, the amount of any such taxes paid or accrued during the taxable year to any possession of the United States; and (3) Alien resident of the United States or Puerto Rico In the case of an alien resident of the United States and in the case of an alien indi- vidual who is a bona fide resident of Puerto Rico during the entire taxable year, the amount of any such taxes paid or accrued during the taxable year to any foreign coun- try; and (4) Nonresident alien individuals and foreign cor- porations In the case of any nonresident alien individ- ual not described in section 876 and in the case of any foreign corporation, the amount determined pursuant to section 906; and (5) Partnerships and estates In the case of any individud described in paragraph (1), (2), (3), or (4), who is a member of a partnership or a beneficiary of an estate or trust, the amount of his propor- tionate share of the taxes (described in such paragraph) of the partnership or the estate or trust paid or accrued during the taxable year to a foreign country or to any possession of the United States, as the case may be. (c) Similar credit required for certain alien residents Whenever the President finds that- (1) a foreign country, in imposing income, war profits, and excess profits taxes, does not allow to citizens of the United States residing in such foreign country a credit for any such taxes paid or accrued to the United States or any foreign country, as the case may be, simi- lar to the credit allowed under subsection (b)(3), (2) such foreign country, when requested by the United States to do so, has not acted to provide such a similar credit to citizens of the United States residing in such foreign coun- try, and (3) it is in the public interest to allow the credit under subsection (b)(3) to citizens or subjects of such foreign country only if it allows such a similar credit to citizens of the United States residing in such foreign coun- try, the President shall proclaim that, for taxable years beginning while the proclamation re- Page 575 § 901