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136 STAT. 1821 PUBLIC LAW 117–169—AUG. 16, 2022 ‘‘(ii) such entities are included in the same applicable financial statement with respect to such year, and ‘‘(iii) either— ‘‘(I) the common parent of such entities is a foreign corporation, or ‘‘(II) if there is no common parent, the entities are treated as having a common parent which is a foreign corporation under subparagraph (D). ‘‘(C) FOREIGN CORPORATIONS ENGAGED IN A TRADE OR BUSINESS WITHIN THE UNITED STATES.—For purposes of this paragraph, if a foreign corporation is engaged in a trade or business within the United States, such trade or busi- ness shall be treated as a separate domestic corporation that is wholly owned by the foreign corporation. ‘‘(D) OTHER RULES.—The Secretary shall, applying the principles of this section, prescribe rules for the application of this paragraph, including rules for the determination of— ‘‘(i) the entities (if any) which are to be to be treated under subparagraph (B)(iii)(II) as having a common parent which is a foreign corporation, ‘‘(ii) the entities to be included in a foreign- parented multinational group, and ‘‘(iii) the common parent of a foreign-parented multinational group. ‘‘(3) REGULATIONS OR OTHER GUIDANCE.—The Secretary shall provide regulations or other guidance for the purposes of carrying out this subsection, including regulations or other guidance— ‘‘(A) providing a simplified method for determining whether a corporation meets the requirements of paragraph (1), and ‘‘’(B) addressing the application of this subsection to a corporation that experiences a change in ownership.’’. (3) REDUCTION FOR BASE EROSION AND ANTI-ABUSE TAX.— Section 55(a)(2) is amended by inserting ‘‘plus, in the case of an applicable corporation, the tax imposed by section 59A’’ before the period at the end. (4) CONFORMING AMENDMENTS.— (A) Section 55(a) is amended by striking ‘‘In the case of a taxpayer other than a corporation, there’’ and inserting ‘‘There’’. (B)(i) Section 55(b)(1) is amended— (I) by striking so much as precedes subparagraph (A) and inserting the following: ‘‘(1) NONCORPORATE TAXPAYERS.—In the case of a taxpayer other than a corporation—’’, and (II) by adding at the end the following new subparagraph: ‘‘(D) ALTERNATIVE MINIMUM TAXABLE INCOME.—The term ‘alternative minimum taxable income’ means the tax- able income of the taxpayer for the taxable year— ‘‘(i) determined with the adjustments provided in section 56 and section 58, and ‘‘(ii) increased by the amount of the items of tax preference described in section 57. Definition. 26 USC 55. Applicability. VerDate Sep 11 2014 13:57 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00005 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw