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131 STAT. 2191 PUBLIC LAW 115–97—DEC. 22, 2017 (b) APPLICATION OF HOLDING PERIOD REQUIREMENT.—Sub- section (c) of section 246 is amended— (1) by striking ‘‘or 245’’ in paragraph (1) and inserting ‘‘245, or 245A’’, and (2) by adding at the end the following new paragraph: ‘‘(5) SPECIAL RULES FOR FOREIGN SOURCE PORTION OF DIVI- DENDS RECEIVED FROM SPECIFIED 10-PERCENT OWNED FOREIGN CORPORATIONS.— ‘‘(A) 1-YEAR HOLDING PERIOD REQUIREMENT.—For pur- poses of section 245A— ‘‘(i) paragraph (1)(A) shall be applied— ‘‘(I) by substituting ‘365 days’ for ‘45 days’ each place it appears, and ‘‘(II) by substituting ‘731-day period’ for ‘91- day period’, and ‘‘(ii) paragraph (2) shall not apply. ‘‘(B) STATUS MUST BE MAINTAINED DURING HOLDING PERIOD.—For purposes of applying paragraph (1) with respect to section 245A, the taxpayer shall be treated as holding the stock referred to in paragraph (1) for any period only if— ‘‘(i) the specified 10-percent owned foreign corpora- tion referred to in section 245A(a) is a specified 10- percent owned foreign corporation at all times during such period, and ‘‘(ii) the taxpayer is a United States shareholder with respect to such specified 10-percent owned foreign corporation at all times during such period.’’. (c) APPLICATION OF RULES GENERALLY APPLICABLE TO DEDUC- TIONS FOR DIVIDENDS RECEIVED.— (1) TREATMENT OF DIVIDENDS FROM CERTAIN CORPORA- TIONS.—Paragraph (1) of section 246(a) is amended by striking ‘‘and 245’’ and inserting ‘‘245, and 245A’’. (2) COORDINATION WITH SECTION 1059.—Subparagraph (B) of section 1059(b)(2) is amended by striking ‘‘or 245’’ and inserting ‘‘245, or 245A’’. (d) COORDINATION WITH FOREIGN TAX CREDIT LIMITATION.— Subsection (b) of section 904 is amended by adding at the end the following new paragraph: ‘‘(5) TREATMENT OF DIVIDENDS FOR WHICH DEDUCTION IS ALLOWED UNDER SECTION 245A.—For purposes of subsection (a), in the case of a domestic corporation which is a United States shareholder with respect to a specified 10-percent owned foreign corporation, such shareholder’s taxable income from sources without the United States (and entire taxable income) shall be determined without regard to— ‘‘(A) the foreign-source portion of any dividend received from such foreign corporation, and ‘‘(B) any deductions properly allocable or apportioned to— ‘‘(i) income (other than amounts includible under section 951(a)(1) or 951A(a)) with respect to stock of such specified 10-percent owned foreign corporation, or ‘‘(ii) such stock to the extent income with respect to such stock is other than amounts includible under section 951(a)(1) or 951A(a). 26 USC 246. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00139 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS