,,ii  #aaf? ,,congress  #b;d ,session   
,s4 #cidj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #aa1 #bjbj,mr4   
,wick] introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to exclude c]ta9  
am\nts f ! te/$ income ( controll$ =eign
 corporations1 & = o!r purposes4  #a4   
,%ort title ,?is ,act may be cit$ z !   
,t]ritorial ,economic ,recov]y ,act4    
#b4 ,income ( c]ta9 qualifi$ possession 
corporations exclud$ f te/$ income  7a7 
,9 g5]al ,section #iea;,a ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$-- 7#a7 9 
subsection 7c77#b77;,a77i71 by /rik+ &  
at ! end ( subclause 7,,iv71 by /rik+   
ov] at ! end ( subclause 7,v7 & ins]t+  
&1 & by add+ at ! end ! foll[+ new      
subclause3  7,,vi7 any income ( a       
qualifi$ possession corporation t is    
effectively connect$ ) ! active conduct 
( a trade or bus9ess )9 a possession ( !
 ,unit$ ,/ates1 ov]  2 &  7#b7 by add+  
at ! end ! foll[+ new subsections3  7g7 

,possession ( ! ,unit$ ,/ates ,=        
purposes ( ?is section1 ! t]m possession
 ( ! ,unit$ ,/ates means ,pu]to ,rico1 !
 ,virg9 ,isl&s1 & any specifi$          
possession describ$ 9 section #ica7;c74 
7h7 ,qualifi$ possession corporation ,= 
purposes ( ?is section1 ! t]m qualifi$  
possession corporation means any        
controll$ =eign corporation = any       
taxable ye>1 if1 = ! #c-ye> p]iod 7or ! 
p]iod dur+ :i* ! controll$ =eign        
corporation has be5 9 exi/5ce1 if %ort]7
 end+ 9 ! taxable ye> prec$+ ! taxable  
ye> 9 :i* ! det]m9ation is made-- 7#a7  
#hj p]c5t or m ( ! gross income ( su*   
corporation 0 d]iv$ f s\rces )9 a       
possession ( ! ,unit$ ,/ates1 &  7#b7   
#ge p]c5t or m ( ! gross income ( su*   
corporation 0 effectively connect$ ) !  
active conduct ( a trade or bus9ess )9 a
 possession ( ! ,unit$ ,/ates4  4  7b7  
,effective date ,! am5dm5ts made by ?is 
section %all apply taxable ye>s ( =eign 
corporations beg9n+ aft] ,decemb] #ca1  
#bjai1 & to taxable ye>s ( ,unit$ ,/ates

 %>ehold]s 9 :i* or ) :i* su* taxable   
ye>s ( =eign corporations end4