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131 STAT. 2208 PUBLIC LAW 115–97—DEC. 22, 2017 (b) CLERICAL AMENDMENT.—The table of sections for subpart F of part III of subchapter N of chapter 1 is amended by striking the item relating to section 965 and inserting the following: ‘‘Sec. 965. Treatment of deferred foreign income upon transition to participation ex- emption system of taxation.’’. Subpart B—Rules Related to Passive and Mobile Income CHAPTER 1—TAXATION OF FOREIGN-DERIVED INTAN- GIBLE INCOME AND GLOBAL INTANGIBLE LOW-TAXED INCOME SEC. 14201. CURRENT YEAR INCLUSION OF GLOBAL INTANGIBLE LOW- TAXED INCOME BY UNITED STATES SHAREHOLDERS. (a) IN GENERAL.—Subpart F of part III of subchapter N of chapter 1 is amended by inserting after section 951 the following new section: ‘‘SEC. 951A. GLOBAL INTANGIBLE LOW-TAXED INCOME INCLUDED IN GROSS INCOME OF UNITED STATES SHAREHOLDERS. ‘‘(a) IN GENERAL.—Each person who is a United States share- holder of any controlled foreign corporation for any taxable year of such United States shareholder shall include in gross income such shareholder’s global intangible low-taxed income for such tax- able year. ‘‘(b) GLOBAL INTANGIBLE LOW-TAXED INCOME.—For purposes of this section— ‘‘(1) IN GENERAL.—The term ‘global intangible low-taxed income’ means, with respect to any United States shareholder for any taxable year of such United States shareholder, the excess (if any) of— ‘‘(A) such shareholder’s net CFC tested income for such taxable year, over ‘‘(B) such shareholder’s net deemed tangible income return for such taxable year. ‘‘(2) NET DEEMED TANGIBLE INCOME RETURN.—The term ‘net deemed tangible income return’ means, with respect to any United States shareholder for any taxable year, the excess of— ‘‘(A) 10 percent of the aggregate of such shareholder’s pro rata share of the qualified business asset investment of each controlled foreign corporation with respect to which such shareholder is a United States shareholder for such taxable year (determined for each taxable year of each such controlled foreign corporation which ends in or with such taxable year of such United States shareholder), over ‘‘(B) the amount of interest expense taken into account under subsection (c)(2)(A)(ii) in determining the share- holder’s net CFC tested income for the taxable year to the extent the interest income attributable to such expense is not taken into account in determining such shareholder’s net CFC tested income. ‘‘(c) NET CFC TESTED INCOME.—For purposes of this section— ‘‘(1) IN GENERAL.—The term ‘net CFC tested income’ means, with respect to any United States shareholder for any taxable 26 USC 951A. 26 USC 951 prec. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00156 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS