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131 STAT. 2197 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(5) NETTING AMONG UNITED STATES SHAREHOLDERS IN SAME AFFILIATED GROUP.— ‘‘(A) IN GENERAL.—In the case of any affiliated group which includes at least one E&P net surplus shareholder and one E&P net deficit shareholder, the amount which would (but for this paragraph) be taken into account under section 951(a)(1) by reason of subsection (a) by each such E&P net surplus shareholder shall be reduced (but not below zero) by such shareholder’s applicable share of the affiliated group’s aggregate unused E&P deficit. ‘‘(B) E&P NET SURPLUS SHAREHOLDER.—For purposes of this paragraph, the term ‘E&P net surplus shareholder’ means any United States shareholder which would (deter- mined without regard to this paragraph) take into account an amount greater than zero under section 951(a)(1) by reason of subsection (a). ‘‘(C) E&P NET DEFICIT SHAREHOLDER.—For purposes of this paragraph, the term ‘E&P net deficit shareholder’ means any United States shareholder if— ‘‘(i) the aggregate foreign E&P deficit with respect to such shareholder (as defined in paragraph (3)(A) without regard to clause (i)(II) thereof), exceeds ‘‘(ii) the amount which would (but for this sub- section) be taken into account by such shareholder under section 951(a)(1) by reason of subsection (a). ‘‘(D) AGGREGATE UNUSED E&P DEFICIT.—For purposes of this paragraph— ‘‘(i) IN GENERAL.—The term ‘aggregate unused E&P deficit’ means, with respect to any affiliated group, the lesser of— ‘‘(I) the sum of the excesses described in subparagraph (C), determined with respect to each E&P net deficit shareholder in such group, or ‘‘(II) the amount determined under subpara- graph (E)(ii). ‘‘(ii) REDUCTION WITH RESPECT TO E&P NET DEFICIT SHAREHOLDERS WHICH ARE NOT WHOLLY OWNED BY THE AFFILIATED GROUP.—If the group ownership percentage of any E&P net deficit shareholder is less than 100 percent, the amount of the excess described in subpara- graph (C) which is taken into account under clause (i)(I) with respect to such E&P net deficit shareholder shall be such group ownership percentage of such amount. ‘‘(E) APPLICABLE SHARE.—For purposes of this para- graph, the term ‘applicable share’ means, with respect to any E&P net surplus shareholder in any affiliated group, the amount which bears the same proportion to such group’s aggregate unused E&P deficit as— ‘‘(i) the product of— ‘‘(I) such shareholder’s group ownership percentage, multiplied by ‘‘(II) the amount which would (but for this paragraph) be taken into account under section 951(a)(1) by reason of subsection (a) by such share- holder, bears to VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00145 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS