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131 STAT. 2098 PUBLIC LAW 115–97—DEC. 22, 2017 (i) by striking ‘‘35 percent’’ and inserting ‘‘the highest rate of tax in effect for the taxable year under section 11(b)’’, and (ii) by striking ‘‘of the amount’’ and inserting ‘‘multi- plied by the amount’’. (D) Section 1446(b)(2)(B) is amended by striking ‘‘section 11(b)(1)’’ and inserting ‘‘section 11(b)’’. (4) Section 852(b)(1) is amended by striking the last sen- tence. (5)(A) Part I of subchapter B of chapter 5 is amended by striking section 1551 (and by striking the item relating to such section in the table of sections for such part). (B) Section 535(c)(5) is amended to read as follows: ‘‘(5) CROSS REFERENCE.—For limitation on credit provided in paragraph (2) or (3) in the case of certain controlled corpora- tions, see section 1561.’’. (6)(A) Section 1561, as amended by section 12001, is amended to read as follows: ‘‘SEC. 1561. LIMITATION ON ACCUMULATED EARNINGS CREDIT IN THE CASE OF CERTAIN CONTROLLED CORPORATIONS. ‘‘(a) IN GENERAL.—The component members of a controlled group of corporations on a December 31 shall, for their taxable years which include such December 31, be limited for purposes of this subtitle to one $250,000 ($150,000 if any component member is a corporation described in section 535(c)(2)(B)) amount for pur- poses of computing the accumulated earnings credit under section 535(c)(2) and (3). Such amount shall be divided equally among the component members of such group on such December 31 unless the Secretary prescribes regulations permitting an unequal alloca- tion of such amount. ‘‘(b) CERTAIN SHORT TAXABLE YEARS.—If a corporation has a short taxable year which does not include a December 31 and is a component member of a controlled group of corporations with respect to such taxable year, then for purposes of this subtitle, the amount to be used in computing the accumulated earnings credit under section 535(c)(2) and (3) of such corporation for such taxable year shall be the amount specified in subsection (a) with respect to such group, divided by the number of corporations which are component members of such group on the last day of such taxable year. For purposes of the preceding sentence, section 1563(b) shall be applied as if such last day were substituted for December 31.’’. (B) The table of sections for part II of subchapter B of chapter 5 is amended by striking the item relating to section 1561 and inserting the following new item: ‘‘Sec. 1561. Limitation on accumulated earnings credit in the case of certain con- trolled corporations.’’. (7) Section 7518(g)(6)(A) is amended— (A) by striking ‘‘With respect to the portion’’ and inserting ‘‘In the case of a taxpayer other than a corpora- tion, with respect to the portion’’, and (B) by striking ‘‘(34 percent in the case of a corpora- tion)’’. (c) EFFECTIVE DATE.— 28 USC 11 note. 26 USC 1561 prec. 26 USC 1551 prec. 26 USC 1446. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00046 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS