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131 STAT. 2209 PUBLIC LAW 115–97—DEC. 22, 2017 year of such United States shareholder, the excess (if any) of— ‘‘(A) the aggregate of such shareholder’s pro rata share of the tested income of each controlled foreign corporation with respect to which such shareholder is a United States shareholder for such taxable year of such United States shareholder (determined for each taxable year of such con- trolled foreign corporation which ends in or with such taxable year of such United States shareholder), over ‘‘(B) the aggregate of such shareholder’s pro rata share of the tested loss of each controlled foreign corporation with respect to which such shareholder is a United States shareholder for such taxable year of such United States shareholder (determined for each taxable year of such con- trolled foreign corporation which ends in or with such taxable year of such United States shareholder). ‘‘(2) TESTED INCOME; TESTED LOSS.—For purposes of this section— ‘‘(A) TESTED INCOME.—The term ‘tested income’ means, with respect to any controlled foreign corporation for any taxable year of such controlled foreign corporation, the excess (if any) of— ‘‘(i) the gross income of such corporation deter- mined without regard to— ‘‘(I) any item of income described in section 952(b), ‘‘(II) any gross income taken into account in determining the subpart F income of such corpora- tion, ‘‘(III) any gross income excluded from the for- eign base company income (as defined in section 954) and the insurance income (as defined in sec- tion 953) of such corporation by reason of section 954(b)(4), ‘‘(IV) any dividend received from a related per- son (as defined in section 954(d)(3)), and ‘‘(V) any foreign oil and gas extraction income (as defined in section 907(c)(1)) of such corporation, over ‘‘(ii) the deductions (including taxes) properly allo- cable to such gross income under rules similar to the rules of section 954(b)(5) (or to which such deductions would be allocable if there were such gross income). ‘‘(B) TESTED LOSS.— ‘‘(i) IN GENERAL.—The term ‘tested loss’ means, with respect to any controlled foreign corporation for any taxable year of such controlled foreign corporation, the excess (if any) of the amount described in subpara- graph (A)(ii) over the amount described in subpara- graph (A)(i). ‘‘(ii) COORDINATION WITH SUBPART F TO DENY DOUBLE BENEFIT OF LOSSES.—Section 952(c)(1)(A) shall be applied by increasing the earnings and profits of the controlled foreign corporation by the tested loss of such corporation. ‘‘(d) QUALIFIED BUSINESS ASSET INVESTMENT.—For purposes of this section— VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00157 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS