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136 STAT. 1825 PUBLIC LAW 117–169—AUG. 16, 2022 extent such amount was not otherwise taken into account under paragraph (5). ‘‘(10) CONSISTENT TREATMENT OF MORTGAGE SERVICING INCOME OF TAXPAYER OTHER THAN A REGULATED INVESTMENT COMPANY.— ‘‘(A) IN GENERAL.—Adjusted financial statement income shall be adjusted so as not to include any item of income in connection with a mortgage servicing contract any earlier than when such income is included in gross income under any other provision of this chapter. ‘‘(B) RULES FOR AMOUNTS NOT REPRESENTING REASON- ABLE COMPENSATION.—The Secretary shall provide regula- tions to prevent the avoidance of taxes imposed by this chapter with respect to amounts not representing reason- able compensation (as determined by the Secretary) with respect to a mortgage servicing contract. ‘‘(11) ADJUSTMENT WITH RESPECT TO DEFINED BENEFIT PEN- SIONS.— ‘‘(A) IN GENERAL.—Except as otherwise provided in rules prescribed by the Secretary in regulations or other guidance, adjusted financial statement income shall be— ‘‘(i) adjusted to disregard any amount of income, cost, or expense that would otherwise be included on the applicable financial statement in connection with any covered benefit plan, ‘‘(ii) increased by any amount of income in connec- tion with any such covered benefit plan that is included in the gross income of the corporation under any other provision of this chapter, and ‘‘(iii) reduced by deductions allowed under any other provision of this chapter with respect to any such covered benefit plan. ‘‘(B) COVERED BENEFIT PLAN.—For purposes of this paragraph, the term ‘covered benefit plan’ means— ‘‘(i) a defined benefit plan (other than a multiem- ployer plan described in section 414(f)) if the trust which is part of such plan is an employees’ trust described in section 401(a) which is exempt from tax under section 501(a), ‘‘(ii) any qualified foreign plan (as defined in sec- tion 404A(e)), or ‘‘(iii) any other defined benefit plan which provides post-employment benefits other than pension benefits. ‘‘(12) TAX-EXEMPT ENTITIES.—In the case of an organization subject to tax under section 511, adjusted financial statement income shall be appropriately adjusted to only take into account any adjusted financial statement income— ‘‘(A) of an unrelated trade or business (as defined in section 513) of such organization, or ‘‘(B) derived from debt-financed property (as defined in section 514) to the extent that income from such property is treated as unrelated business taxable income. ‘‘(13) DEPRECIATION.—Adjusted financial statement income shall be— ‘‘(A) reduced by depreciation deductions allowed under section 167 with respect to property to which section 168 Applicability. Definition. Regulations. Guidelines. Determination. VerDate Sep 11 2014 13:57 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00009 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw