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131 STAT. 2221 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(II) any corporation which first becomes a surrogate foreign corporation (as defined in section 7874(a)(2)(B)) after the date of the enactment of this subclause, other than a foreign corporation which is treated as a domestic corporation under section 7874(b).’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to dividends received after the date of the enactment of this Act. Subpart C—Modifications Related to Foreign Tax Credit System SEC. 14301. REPEAL OF SECTION 902 INDIRECT FOREIGN TAX CREDITS; DETERMINATION OF SECTION 960 CREDIT ON CURRENT YEAR BASIS. (a) REPEAL OF SECTION 902 INDIRECT FOREIGN TAX CREDITS.— Subpart A of part III of subchapter N of chapter 1 is amended by striking section 902. (b) DETERMINATION OF SECTION 960 CREDIT ON CURRENT YEAR BASIS.—Section 960, as amended by section 14201, is amended— (1) by striking subsection (c), by redesignating subsection (b) as subsection (c), by striking all that precedes subsection (c) (as so redesignated) and inserting the following: ‘‘SEC. 960. DEEMED PAID CREDIT FOR SUBPART F INCLUSIONS. ‘‘(a) IN GENERAL.—For purposes of subpart A of this part, if there is included in the gross income of a domestic corporation any item of income under section 951(a)(1) with respect to any controlled foreign corporation with respect to which such domestic corporation is a United States shareholder, such domestic corpora- tion shall be deemed to have paid so much of such foreign corpora- tion’s foreign income taxes as are properly attributable to such item of income. ‘‘(b) SPECIAL RULES FOR DISTRIBUTIONS FROM PREVIOUSLY TAXED EARNINGS AND PROFITS.—For purposes of subpart A of this part— ‘‘(1) IN GENERAL.—If any portion of a distribution from a controlled foreign corporation to a domestic corporation which is a United States shareholder with respect to such controlled foreign corporation is excluded from gross income under section 959(a), such domestic corporation shall be deemed to have paid so much of such foreign corporation’s foreign income taxes as— ‘‘(A) are properly attributable to such portion, and ‘‘(B) have not been deemed to have to been paid by such domestic corporation under this section for the taxable year or any prior taxable year. ‘‘(2) TIERED CONTROLLED FOREIGN CORPORATIONS.—If sec- tion 959(b) applies to any portion of a distribution from a controlled foreign corporation to another controlled foreign cor- poration, such controlled foreign corporation shall be deemed to have paid so much of such other controlled foreign corpora- tion’s foreign income taxes as— ‘‘(A) are properly attributable to such portion, and 26 USC 902. 26 USC 1 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00169 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS