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131 STAT. 2222 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(B) have not been deemed to have been paid by a domestic corporation under this section for the taxable year or any prior taxable year.’’, (2) and by adding after subsection (d) (as added by section 14201) the following new subsections: ‘‘(e) FOREIGN INCOME TAXES.—The term ‘foreign income taxes’ means any income, war profits, or excess profits taxes paid or accrued to any foreign country or possession of the United States. ‘‘(f) REGULATIONS.—The Secretary shall prescribe such regula- tions or other guidance as may be necessary or appropriate to carry out the provisions of this section.’’. (c) CONFORMING AMENDMENTS.— (1) Section 78 is amended to read as follows: ‘‘SEC. 78. GROSS UP FOR DEEMED PAID FOREIGN TAX CREDIT. ‘‘If a domestic corporation chooses to have the benefits of sub- part A of part III of subchapter N (relating to foreign tax credit) for any taxable year, an amount equal to the taxes deemed to be paid by such corporation under subsections (a), (b), and (d) of section 960 (determined without regard to the phrase ‘80 percent of’ in subsection (d)(1) thereof) for such taxable year shall be treated for purposes of this title (other than sections 245 and 245A) as a dividend received by such domestic corporation from the foreign corporation.’’. (2) Paragraph (4) of section 245(a) is amended to read as follows: ‘‘(4) POST-1986 UNDISTRIBUTED EARNINGS.—The term ‘post- 1986 undistributed earnings’ means the amount of the earnings and profits of the foreign corporation (computed in accordance with sections 964(a) and 986) accumulated in taxable years beginning after December 31, 1986— ‘‘(A) as of the close of the taxable year of the foreign corporation in which the dividend is distributed, and ‘‘(B) without diminution by reason of dividends distrib- uted during such taxable year.’’. (3) Section 245(a)(10)(C) is amended by striking ‘‘902, 907, and 960’’ and inserting ‘‘907 and 960’’. (4) Sections 535(b)(1) and 545(b)(1) are each amended by striking ‘‘section 902(a) or 960(a)(1)’’ and inserting ‘‘section 960’’. (5) Section 814(f)(1) is amended— (A) by striking subparagraph (B), and (B) by striking all that precedes ‘‘No income’’ and inserting the following: ‘‘(1) TREATMENT OF FOREIGN TAXES.—’’. (6) Section 865(h)(1)(B) is amended by striking ‘‘902, 907,’’ and inserting ‘‘907’’. (7) Section 901(a) is amended by striking ‘‘sections 902 and 960’’ and inserting ‘‘section 960’’. (8) Section 901(e)(2) is amended by striking ‘‘but is not limited to—’’ and all that follows through ‘‘that portion’’ and inserting ‘‘but is not limited to that portion’’. (9) Section 901(f) is amended by striking ‘‘sections 902 and 960’’ and inserting ‘‘section 960’’. (10) Section 901(j)(1)(A) is amended by striking ‘‘902 or’’. (11) Section 901(j)(1)(B) is amended by striking ‘‘sections 902 and 960’’ and inserting ‘‘section 960’’. 26 USC 78. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00170 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS