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131 STAT. 2198 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(ii) the aggregate amount determined under clause (i) with respect to all E&P net surplus share- holders in such group. ‘‘(F) GROUP OWNERSHIP PERCENTAGE.—For purposes of this paragraph, the term ‘group ownership percentage’ means, with respect to any United States shareholder in any affiliated group, the percentage of the value of the stock of such United States shareholder which is held by other includible corporations in such affiliated group. Notwithstanding the preceding sentence, the group owner- ship percentage of the common parent of the affiliated group is 100 percent. Any term used in this subparagraph which is also used in section 1504 shall have the same meaning as when used in such section. ‘‘(c) APPLICATION OF PARTICIPATION EXEMPTION TO INCLUDED INCOME.— ‘‘(1) IN GENERAL.—In the case of a United States share- holder of a deferred foreign income corporation, there shall be allowed as a deduction for the taxable year in which an amount is included in the gross income of such United States shareholder under section 951(a)(1) by reason of this section an amount equal to the sum of— ‘‘(A) the United States shareholder’s 8 percent rate equivalent percentage of the excess (if any) of— ‘‘(i) the amount so included as gross income, over ‘‘(ii) the amount of such United States share- holder’s aggregate foreign cash position, plus ‘‘(B) the United States shareholder’s 15.5 percent rate equivalent percentage of so much of the amount described in subparagraph (A)(ii) as does not exceed the amount described in subparagraph (A)(i). ‘‘(2) 8 AND 15.5 PERCENT RATE EQUIVALENT PERCENTAGES.— For purposes of this subsection— ‘‘(A) 8 PERCENT RATE EQUIVALENT PERCENTAGE.—The term ‘8 percent rate equivalent percentage’ means, with respect to any United States shareholder for any taxable year, the percentage which would result in the amount to which such percentage applies being subject to a 8 percent rate of tax determined by only taking into account a deduction equal to such percentage of such amount and the highest rate of tax specified in section 11 for such taxable year. In the case of any taxable year of a United States shareholder to which section 15 applies, the highest rate of tax under section 11 before the effective date of the change in rates and the highest rate of tax under section 11 after the effective date of such change shall each be taken into account under the preceding sentence in the same proportions as the portion of such taxable year which is before and after such effective date, respec- tively. ‘‘(B) 15.5 PERCENT RATE EQUIVALENT PERCENTAGE.— The term ‘15.5 percent rate equivalent percentage’ means, with respect to any United States shareholder for any taxable year, the percentage determined under subpara- graph (A) applied by substituting ‘15.5 percent rate of tax’ for ‘8 percent rate of tax’. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00146 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS