,i  #aah? ,,congress  #a/ ,session  ,h4 
,r4 #djbi  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #ab1 #bjbc,mr4  
,h]n 7= himself1 ,mr4 ,e/es1 ,mrs4      
,mill] ( ,we/ ,virg9ia1 ,ms4 ,t5ney1    
,mr4 ,f]guson1 ,mr4 ,s*weik]t1 ,mr4     
,smi? ( ,nebraska1 & ,mr4 ,fe5/ra7      
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to secure ! supply *a9 by      
provid+ an election to det]m9e =eign    
income taxes paid or incurr$ to c]ta9   
,we/]n ,hemisph]e c\ntries )\t reg>d to 
c]ta9 regulations4  #a4 ,%ort title ,?is
 ,act may be cit$ z ! ,supply ,*a9      
,security ,act4  #b4 ,election to       
det]m9e =eign income taxes paid or      
incurr$ to c]ta9 ,we/]n ,hemisph]e      
c\ntries )\t reg>d to c]ta9 regulations 
7a7 ,election ) respect to det]m9+ c]ta9
 =eign income taxes ,9 ! case ( any     
taxpay] :i* elects 7at su* "t & 9 su*   
mann] z ! ,secret>y may provide7 !      
application ( ?is subsection1 !         
det]m9ation ( :e!r any ,we/]n ,hemisph]e

 tax paid or accru$ by su* taxpay] is an
 income1 w> pr(its1 or excess pr(its tax
 = purposes ( any provision ( ! ,int]nal
 ,rev5ue ,code ( #aihf %all be made )\t 
reg>d to any specifi$ regulation4  7b7  
,sep>ate election ) respect to          
allocation & apportionm5t ( =eign income
 taxes relat+ to disreg>d$ paym5ts f    
c]ta9 disreg>d$ entities  7#a7 ,9 g5]al 
,if ! own] ( any specifi$ disreg>d$     
entity elects 7at su* "t & 9 su* mann] z
 ! ,secret>y may provide7 ! application 
( ?is subsection ) respect to su*       
entity1 !n = purposes ( allocat+ &      
apportion+ any =eign income taxes 7z    
def9$ 9 section #ihf7;a77#d7 ( !        
,int]nal ,rev5ue ,code ( #aihf & det]m9$
 aft] ! application ( subsection 7a7 (  
?is section7 paid or accru$ by reason ( 
any remittance made by su* entity to su*
 own] dur+ ! applicable p]iod1 any items
 ( =eign gross income includ$ by reason 
( ! receipt ( su* remittance %all be    
assign$ to a category bas$ on curr5t &  
accumulat$ e>n+s & pr(its ( su* entity  

79 lieu ( be+ assign$ on ! basis ( ! tax
 book value me?od describ$ 9 a specifi$ 
regulation74  7#b7 ,specifi$ disreg>d$  
entity ,= purposes ( ?is subsection1 !  
t]m specifi$ disreg>d$ entity means any 
entity 7includ+ any trade or bus9ess7   
if-- 7,a7 su* entity is disreg>d$ z an  
entity sep>ate f its own] = purposes (  
apply+ *apt] #a ( ! ,int]nal ,rev5ue    
,code ( #aihf1  7,b7 su* entity is      
creat$ or organiz$ 9 a possession ( !   
,unit$ ,/ates or a =eign c\ntry describ$
 9 subsection 7d77#a77;,b71  7,c7 at all
 times aft] ,decemb] #ca1 #bjai 7or1 if 
lat]1 ! date on :i* su* entity is creat$
 or organiz$71 sub/antially all ( !     
income ( su* entity is d]iv$ f trades or
 bus9esses conduct$ 9 ! possession or   
c\ntry ref]r$ to 9 subp>agraph 7,b71 &  
7,d7 at all times aft] ! date on :i* su*
 entity is creat$ or organiz$1 su*      
entity ma9ta9s sep>ate books & records4 
7c7 ,application to deem$ paid cr$it ,9 
! case ( any tax paid or accru$ by a    
controll$ =eign corporation & deem$ to h

 be5 paid by a ,unit$ ,/ates %>ehold] "u
 section #ifj ( ! ,int]nal ,rev5ue ,code
 ( #aihf-- 7#a7 any election "u         
subsection 7a7 or 7b7 %all be made by   
su* controll$ =eign corporation & %all  
be b9d+ on all ,unit$ ,/ates %>ehold]s (
 su* controll$ =eign corporation1 &     
7#b7 ! applicable p]iod "u subsection   
7d7 %all be det]m9$ ) respect to !      
taxable ye>s ( su* controll$ =eign      
corporation4  7d7 ,we/]n ,hemisph]e tax 
,= purposes ( ?is section-- 7#a7 ,9     
g5]al ,! t]m ,we/]n ,hemisph]e tax means
 any tax :i* is paid or accru$ = a      
taxable ye> :i* is 9 ! applicable p]iod 
to-- 7,a7 any possession ( ! ,unit$     
,/ates1 or  7,b7 any =eign c\ntry 7o!r  
?an ,cuba & ,v5ezuela7 :i* is locat$ 9  
,nor?1 ,c5tral1 or ,s\? ,am]ica 7includ+
 ! ,we/ ,indies74  7#b7 ,applicable     
p]iod ,! t]m applicable p]iod means--   
7,a7 9 ! case ( any election made "u    
subsection 7a71 all taxable ye>s beg9n+ 
aft] ,decemb] #ca1 #bjba1 & be=e ,janu>y
 #a1 #bjbg1 &  7,b7 9 ! case ( any      

election made "u subsection 7b71 all    
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjai1 & be=e ,janu>y #a1 #bjbg4  7#c7  
,det]m9ation bas$ on taxable ye> = :i*  
tax actually paid or accru$ ,!          
det]m9ation ( ! taxable ye> = :i* any   
tax is paid or accru$ = purposes (      
det]m9+ :e!r a =eign tax is paid or     
accru$ = a taxable ye> :i* is 9 !       
applicable p]iod %all be made )\t reg>d 
to any taxable ye> ) respect to :i* su* 
tax is deem$ to h be5 paid "u section   
#ijd7;c7 or #ifj ( ! ,int]nal ,rev5ue   
,code ( #aihf4  7e7 ,specifi$ regulation
 ,= purposes ( ?is section1 ! t]m       
specifi$ regulation means-- 7#a7        
,treasury ,regulations relat+ to        
8,guidance ,relat$ to ! ,=eign ,tax     
,cr$it2 ,cl>ification ( ,=eign-,d]iv$   
,intangible ,income0 7#hg ,f$4 ,reg4    
#bgf2 publi%$ on ,janu>y #d1 #bjbb71    
7#b7 propos$ ,treasury ,regulations     
relat+ to 8,guidance ,relat$ to ! ,=eign
 ,tax ,cr$it0 7#hg ,f$4 ,reg4 #gabga2   
publi%$ on ,novemb] #bb1 #bjbb71 &  7#c7

 any regulation or o!r guidance publi%$ 
aft] ,janu>y #d1 #bjbb1 to ! ext5t t su*
 regulation or o!r guidance is          
sub/antially simil> to1 or pr$icat$ ^u1 
any portion ( ! regulations ref]r$ to 9 
p>agraph 7#a7 or 7#b74  ,9 ! case ( any 
regulation or o!r guidance :i* is       
publi%$ aft] ! date ( ! enactm5t ( ?is  
,act & any portion ( :i* is describ$ 9  
p>agraph 7#c71 ! ,secret>y %all id5tify 
su* regulation or guidance 7or portion  
!re(7 z n apply+ ) respect to taxpay]s  
:i* h elect$ ! application ( subsection 
7a7 or 7b71 z ! case may be4  7f7       
,secret>y ,= purposes ( ?is section1 !  
t]m ,secret>y means ! ,secret>y ( !     
,treasury or ! ,secret>y's delegate4