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131 STAT. 2227 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(ii) the sum of— ‘‘(I) the credit allowed under section 38 for the taxable year which is properly allocable to the research credit determined under section 41(a), plus ‘‘(II) the portion of the applicable section 38 credits not in excess of 80 percent of the lesser of the amount of such credits or the base erosion minimum tax amount (determined without regard to this subclause). ‘‘(2) MODIFICATIONS FOR TAXABLE YEARS BEGINNING AFTER 2025.—In the case of any taxable year beginning after December 31, 2025, paragraph (1) shall be applied— ‘‘(A) by substituting ‘12.5 percent’ for ‘10 percent’ in subparagraph (A) thereof, and ‘‘(B) by reducing (but not below zero) the regular tax liability (as defined in section 26(b)) for purposes of subparagraph (B) thereof by the aggregate amount of the credits allowed under this chapter against such regular tax liability rather than the excess described in such subparagraph. ‘‘(3) INCREASED RATE FOR CERTAIN BANKS AND SECURITIES DEALERS.— ‘‘(A) IN GENERAL.—In the case of a taxpayer described in subparagraph (B) who is an applicable taxpayer for any taxable year, the percentage otherwise in effect under paragraphs (1)(A) and (2)(A) shall each be increased by one percentage point. ‘‘(B) TAXPAYER DESCRIBED.—A taxpayer is described in this subparagraph if such taxpayer is a member of an affiliated group (as defined in section 1504(a)(1)) which includes— ‘‘(i) a bank (as defined in section 581), or ‘‘(ii) a registered securities dealer under section 15(a) of the Securities Exchange Act of 1934. ‘‘(4) APPLICABLE SECTION 38 CREDITS.—For purposes of para- graph (1)(B)(ii)(II), the term ‘applicable section 38 credits’ means the credit allowed under section 38 for the taxable year which is properly allocable to— ‘‘(A) the low-income housing credit determined under section 42(a), ‘‘(B) the renewable electricity production credit deter- mined under section 45(a), and ‘‘(C) the investment credit determined under section 46, but only to the extent properly allocable to the energy credit determined under section 48. ‘‘(c) MODIFIED TAXABLE INCOME.—For purposes of this section— ‘‘(1) IN GENERAL.—The term ‘modified taxable income’ means the taxable income of the taxpayer computed under this chapter for the taxable year, determined without regard to— ‘‘(A) any base erosion tax benefit with respect to any base erosion payment, or ‘‘(B) the base erosion percentage of any net operating loss deduction allowed under section 172 for the taxable year. ‘‘(2) BASE EROSION TAX BENEFIT.— VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00175 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS