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131 STAT. 2215 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(4) FOREIGN-DERIVED DEDUCTION ELIGIBLE INCOME.—The term ‘foreign-derived deduction eligible income’ means, with respect to any taxpayer for any taxable year, any deduction eligible income of such taxpayer which is derived in connection with— ‘‘(A) property— ‘‘(i) which is sold by the taxpayer to any person who is not a United States person, and ‘‘(ii) which the taxpayer establishes to the satisfac- tion of the Secretary is for a foreign use, or ‘‘(B) services provided by the taxpayer which the tax- payer establishes to the satisfaction of the Secretary are provided to any person, or with respect to property, not located within the United States. ‘‘(5) RULES RELATING TO FOREIGN USE PROPERTY OR SERV- ICES.—For purposes of this subsection— ‘‘(A) FOREIGN USE.—The term ‘foreign use’ means any use, consumption, or disposition which is not within the United States. ‘‘(B) PROPERTY OR SERVICES PROVIDED TO DOMESTIC INTERMEDIARIES.— ‘‘(i) PROPERTY.—If a taxpayer sells property to another person (other than a related party) for further manufacture or other modification within the United States, such property shall not be treated as sold for a foreign use even if such other person subsequently uses such property for a foreign use. ‘‘(ii) SERVICES.—If a taxpayer provides services to another person (other than a related party) located within the United States, such services shall not be treated as described in paragraph (4)(B) even if such other person uses such services in providing services which are so described. ‘‘(C) SPECIAL RULES WITH RESPECT TO RELATED PARTY TRANSACTIONS.— ‘‘(i) SALES TO RELATED PARTIES.—If property is sold to a related party who is not a United States person, such sale shall not be treated as for a foreign use unless— ‘‘(I) such property is ultimately sold by a related party, or used by a related party in connec- tion with property which is sold or the provision of services, to another person who is an unrelated party who is not a United States person, and ‘‘(II) the taxpayer establishes to the satisfac- tion of the Secretary that such property is for a foreign use. For purposes of this clause, a sale of property shall be treated as a sale of each of the components thereof. ‘‘(ii) SERVICE PROVIDED TO RELATED PARTIES.—If a service is provided to a related party who is not located in the United States, such service shall not be treated described in subparagraph (A)(ii) unless the taxpayer established to the satisfaction of the Secretary that such service is not substantially similar to services provided by such related party to persons located within the United States. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00163 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS