Page 48

131 STAT. 2100 PUBLIC LAW 115–97—DEC. 22, 2017 (ii) the amount of the timing differences which reverse during such period. (C) ALTERNATIVE METHOD.—The ‘‘alternative method’’ is the method in which the taxpayer— (i) computes the excess tax reserve on all public utility property included in the plant account on the basis of the weighted average life or composite rate used to compute depreciation for regulatory purposes, and (ii) reduces the excess tax reserve ratably over the remaining regulatory life of the property. (4) TAX INCREASED FOR NORMALIZATION VIOLATION.—If, for any taxable year ending after the date of the enactment of this Act, the taxpayer does not use a normalization method of accounting for the corporate rate reductions provided in the amendments made by this section— (A) the taxpayer’s tax for the taxable year shall be increased by the amount by which it reduces its excess tax reserve more rapidly than permitted under a normaliza- tion method of accounting, and (B) such taxpayer shall not be treated as using a normalization method of accounting for purposes of sub- sections (f)(2) and (i)(9)(C) of section 168 of the Internal Revenue Code of 1986. SEC. 13002. REDUCTION IN DIVIDEND RECEIVED DEDUCTIONS TO REFLECT LOWER CORPORATE INCOME TAX RATES. (a) DIVIDENDS RECEIVED BY CORPORATIONS.— (1) IN GENERAL.—Section 243(a)(1) is amended by striking ‘‘70 percent’’ and inserting ‘‘50 percent’’. (2) DIVIDENDS FROM 20-PERCENT OWNED CORPORATIONS.— Section 243(c)(1) is amended— (A) by striking ‘‘80 percent’’ and inserting ‘‘65 percent’’, and (B) by striking ‘‘70 percent’’ and inserting ‘‘50 percent’’. (3) CONFORMING AMENDMENT.—The heading for section 243(c) is amended by striking ‘‘RETENTION OF 80-PERCENT DIVI- DEND RECEIVED DEDUCTION’’ and inserting ‘‘INCREASED PERCENTAGE’’. (b) DIVIDENDS RECEIVED FROM FSC.—Section 245(c)(1)(B) is amended— (1) by striking ‘‘70 percent’’ and inserting ‘‘50 percent’’, and (2) by striking ‘‘80 percent’’ and inserting ‘‘65 percent’’. (c) LIMITATION ON AGGREGATE AMOUNT OF DEDUCTIONS.—Sec- tion 246(b)(3) is amended— (1) by striking ‘‘80 percent’’ in subparagraph (A) and inserting ‘‘65 percent’’, and (2) by striking ‘‘70 percent’’ in subparagraph (B) and inserting ‘‘50 percent’’. (d) REDUCTION IN DEDUCTION WHERE PORTFOLIO STOCK IS DEBT-FINANCED.—Section 246A(a)(1) is amended— (1) by striking ‘‘70 percent’’ and inserting ‘‘50 percent’’, and (2) by striking ‘‘80 percent’’ and inserting ‘‘65 percent’’. (e) INCOME FROM SOURCES WITHIN THE UNITED STATES.—Sec- tion 861(a)(2) is amended— 26 USC 243. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00048 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS