,,ii  #aac? ,,congress  #b;d ,session   
,s4 #bghf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #aj1 #bjad   
,mr4 ,s*um] 7= himself1 ,mr4 ,durb91    
,mr4 ,br[n1 ,mr4 ,coons1 ,mr4           
,rockefell]1 ,ms4 ,/ab5[1 ,mr4 ,c>d91   
,mr4 ,re$1 ,mr4 ,m55dez1 ,mr4 ,m>key1   
,mr4 ,m]kley1 ,ms4 ,baldw91 ,mr4 ,lev91 
& ,ms4 ,w>r57 introduc$ ! foll[+ bill2  
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 prev5t e>n+s /ripp+ ( dome/ic          
corporations :i* are memb]s ( a         
worldwide gr\p ( corporations :i*       
includes an inv]t$ corporation & to     
require agreem5ts ) respect to c]ta9    
relat$ p>ty transactions ) ^? memb]s4   
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,corporate ,inv]t]s ,e>n+s ,/ripp+    
,re=m ,act ( #bjad4  #b4 ,additional    
rules relat$ to inv]t$ corporations  7a7
 ,9 g5]al ,section #ghgd ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ subsection 7g7 z subsection  

7h7 & by ins]t+ aft] subsection 7f7 !   
foll[+ new subsection3  7g7  ,special   
rules applicable to e>n+s /ripp+ &      
relat$ p>ty transactions  7#a7          
,modifications ( limitation on int]e/   
d$uction  7,a7 ,9 g5]al ,9 ! case ( any 
additional limitation ye> ( a           
corporation :i* is an applicable entity1
 section #afc7;j7 %all be appli$ ) !    
modifications describ$ 9 subp>agraph    
7,b74  7,b7 ,modifications = additional 
limitation ye>s ,= purposes (           
subp>agraph 7,a71 ! modifications       
describ$ 9 ?is subp>agraph are z foll[s3
  7i7 ,no c>ryov] ,no c>ry=w>d to any   
o!r taxable ye> %all be all[$ "u section
 #afc7;j77#a77;,b7 = int]e/ paid or     
accru$ dur+ any additional limitation   
ye> ) respect to :i* a d$uction 0       
disall[$ to ! corporation "u section    
#afc7;j74  7ii7  ,rules = det]m9+ :e!r  
int]e/ limitation rules apply ,9 apply+ 
section #afc7;j77#b7 to det]m9e :e!r    
section #afc7;j7 applies to !           
corporation = any additional limitation 

ye>-- 7,i7 subp>agraph 7,a77ii7 %all be 
disreg>d$1 &  7,,ii7 subp>agraph        
7,b77i77,,ii7 %all be appli$ by         
sub/itut+ #be p]c5t ( ! adju/$ taxable  
income ( ! corporation = ! sum ( #ej    
p]c5t ( ! adju/$ taxable income ( !     
corporation plus any excess limitation  
c>ry=w>d "u clause 7ii7 = purposes (    
det]m9+ ! corporation's excess int]e/   
exp5se = ! ye>4  7,c7 ,additional       
limitation ye> ,= purposes ( ?is        
p>agraph1 ! t]m additional limitation   
ye> means1 ) respect to any corporation 
:i* is an applicable entity1 any taxable
 ye> beg9n+ on or aft] ! fir/ day ( !   
lat] ( ! corporation's-- 7i7 fir/       
taxable ye> beg9n+ on or aft] ! date (  
enactm5t ( ?is subp>agraph1 or  7ii7    
fir/ taxable ye> = :i* ! corporation is 
an applicable entity4  7#b7  ,annual    
application = agreem5ts on return       
positions  7,a7  ,9 g5]al  ,ea*         
applicable entity %all file ) !         
,secret>y an application = an approval  
agreem5t "u subp>agraph 7,c7 = ea*      

approval ye>4 ,su* application %all be  
fil$ at su* "t & mann]1 & %all conta9   
su* in=mation1 z ! ,secret>y may        
prescribe4  7,b7  ,failures to comply   
,if an applicable entity fails to file  
an application "u subp>agraph 7,a71 or !
 approval agreem5t does n conta9 !      
necess>y provisions describ$ 9          
subp>agraph 7,c71 = any taxable ye>1 !n 
= su* taxable ye>--  7i7 !re %all n be  
all[$ any d$uction1 or addition to basis
 or co/ ( goods sold1 = am\nts paid or  
incurr$1 or losses incurr$1 by reason ( 
a transaction betwe5 ! entity & a =eign 
relat$ p]son1  7ii7 any transf] or      
lic5se ( intangible prop]ty 7z def9$ 9  
section #icf7;h77#c77;,b77 betwe5 !     
entity & a =eign relat$ p]son %all be   
disreg>d$1 &  7iii7 any co/-%>+         
arrangem5t betwe5 ! entity & a =eign    
relat$ p]son %all be disreg>d$4  7,c7   
,approval agreem5t  ,= purposes (       
subp>agraph 7,a71 ! t]m approval        
agreem5t means a prefil+1 advance pric+1
 or o!r agreem5t specifi$ by ! ,secret>y

 :i* conta9s su* provisions z !         
,secret>y det]m9es necess>y to ensure t 
! requirem5ts ( sections #afc7;j71      
#bfg7;a77#c71 #cfg1 #dhb1 & #hde1 & any 
o!r provision ( ?is title applicable to 
transactions betwe5 relat$ p]sons &     
specifi$ by ! ,secret>y1 are met4  7,d7 
,approval ye> ,= purposes ( ?is         
p>agraph1 ! t]m approval ye> means1 )   
respect to any applicable entity1 any   
taxable ye> beg9n+ on or aft] ! date (  
enactm5t ( ?is subp>agraph if su*       
taxable ye> is )9 ! #aj-taxable-ye>     
p]iod beg9n+ ) ! fir/ taxable ye> = :i* 
! entity is an applicable entity4  7#c7 
,applicable entity ,= purposes ( ?is    
subsection-- 7,a7 ,9 g5]al ,! t]m       
applicable entity means any corporation 
:i* is a memb] ( an exp&$ affiliat$ gr\p
 :i* includes an entity :i*-- 7i7 is a  
surrogate =eign corporation1 det]m9$ by 
apply+ subsection 7a77#b77;,b7-- 7,i7 by
 sub/itut+ m ?an #ej p]c5t = at lea/ #fj
 p]c5t 9 clause 7ii7 !re(1  7,,ii7 by   
sub/itut+ be=e1 on1 or aft] = aft] 9    

clause 7i7 !re(1 &  7,,iii7 by disreg>d+
 ! matt] foll[+ clause 7iii7 !re(1 &    
7ii7 is n treat$ z a dome/ic corporation
 by reason ( subsection 7b74  7,b7      
,special rule = inclusion ( noncorporate
 entities ,= purposes ( subp>agraph     
7,a71 a p>tn]%ip or o!r entity 7o!r ?an 
a corporation7 %all be treat$ z a memb] 
( an exp&$ affiliat$ gr\p if su* entity 
controls 7z det]m9$ "u section          
#ied7;d77#c771 or is controll$ by 7z s  
det]m9$71 memb]s ( su* gr\p 7includ+ any
 entity treat$ z a memb] ( su* gr\p by  
reason ( ?is s5t5ce74  4  7b7 ,effective
 date ,! am5dm5ts made by ?is section   
%all apply ) respect to taxable ye>s    
beg9n+ aft] ! date ( enactm5t ( ?is     
,act4