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131 STAT. 2226 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(5) ELECTION TO INCREASE PERCENTAGE OF TAXABLE INCOME TREATED AS FOREIGN SOURCE.— ‘‘(A) IN GENERAL.—If any pre-2018 unused overall domestic loss is taken into account under paragraph (1) for any applicable taxable year, the taxpayer may elect to have such paragraph applied to such loss by substituting a percentage greater than 50 percent (but not greater than 100 percent) for 50 percent in subparagraph (B) thereof. ‘‘(B) PRE-2018 UNUSED OVERALL DOMESTIC LOSS.—For purposes of this paragraph, the term ‘pre-2018 unused overall domestic loss’ means any overall domestic loss which— ‘‘(i) arises in a qualified taxable year beginning before January 1, 2018, and ‘‘(ii) has not been used under paragraph (1) for any taxable year beginning before such date. ‘‘(C) APPLICABLE TAXABLE YEAR.—For purposes of this paragraph, the term ‘applicable taxable year’ means any taxable year of the taxpayer beginning after December 31, 2017, and before January 1, 2028.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 2017. PART II—INBOUND TRANSACTIONS SEC. 14401. BASE EROSION AND ANTI-ABUSE TAX. (a) IMPOSITION OF TAX.—Subchapter A of chapter 1 is amended by adding at the end the following new part: ‘‘PART VII—BASE EROSION AND ANTI-ABUSE TAX ‘‘Sec. 59A. Tax on base erosion payments of taxpayers with substantial gross re- ceipts. ‘‘SEC. 59A. TAX ON BASE EROSION PAYMENTS OF TAXPAYERS WITH SUBSTANTIAL GROSS RECEIPTS. ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed on each applicable taxpayer for any taxable year a tax equal to the base erosion minimum tax amount for the taxable year. Such tax shall be in addition to any other tax imposed by this subtitle. ‘‘(b) BASE EROSION MINIMUM TAX AMOUNT.—For purposes of this section— ‘‘(1) IN GENERAL.—Except as provided in paragraphs (2) and (3), the term ‘base erosion minimum tax amount’ means, with respect to any applicable taxpayer for any taxable year, the excess (if any) of— ‘‘(A) an amount equal to 10 percent (5 percent in the case of taxable years beginning in calendar year 2018) of the modified taxable income of such taxpayer for the taxable year, over ‘‘(B) an amount equal to the regular tax liability (as defined in section 26(b)) of the taxpayer for the taxable year, reduced (but not below zero) by the excess (if any) of— ‘‘(i) the credits allowed under this chapter against such regular tax liability, over 26 USC 59A. 26 USC 59A prec. 26 USC 904 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00174 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS