,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #iie  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,febru>y #e1 #bjbe,mr4
 ,doggett 7= himself1 ,ms4 ,adams1 ,ms4 
,ans>i1 ,ms4 ,bal9t1 ,ms4 ,b>ragn1 ,mrs4
 ,beatty1 ,mr4 ,bi%op1 ,ms4 ,bonamici1  
,mr4 ,boyle ( ,p5nsylvania1 ,ms4 ,br[n1 
,ms4 ,br[nley1 ,ms4 ,budz9ski1 ,mr4     
,c>son1 ,mr4 ,c>t] ( ,l\isiana1 ,mr4    
,cas>1 ,mr4 ,case1 ,ms4 ,*u1 ,ms4 ,cl>ke
 ( ,new ,york1 ,mr4 ,cleav]1 ,mr4 ,coh51
 ,mr4 ,conaway1 ,ms4 ,crockett1 ,mr4    
,cr[1 ,mr4 ,davis ( ,ill9ois1 ,mr4      
,davis ( ,nor? ,c>ol9a1 ,ms4 ,dean (    
,p5nsylvania1 ,mrs4 ,mc,clain ,delaney1 
,ms4 ,de,lauro1 ,ms4 ,del,bene1 ,mr4    
,deluzio1 ,mr4 ,de,saulnier1 ,ms4       
,dext]1 ,mrs4 ,d+ell1 ,ms4 ,escob>1 ,mr4
 ,espaillat1 ,mr4 ,evans ( ,p5nsylvania1
 ,ms4 ,leg] ,f]n&ez1 ,mr4 ,fo/]1 ,mrs4  
,f\%ee1 ,ms4 ,lois ,frankel ( ,florida1 
,mr4 ,fro/1 ,mr4 ,g>am5di1 ,mr4 ,g>ca ( 
,ill9ois1 ,mr4 ,g>cia ( ,cali=nia1 ,ms4 
,g>cia ( ,texas1 ,mr4 ,gold5 ( ,ma9e1   
,mr4 ,goldman ( ,new ,york1 ,mr4 ,gomez1

 ,mr4 ,gre5 ( ,texas1 ,mr4 ,grijalva1   
,mrs4 ,hayes1 ,mr4 ,hors=d1 ,ms4 ,hoyle 
( ,oregon1 ,mr4 ,huffman1 ,mr4 ,ivey1   
,mr4 ,jackson ( ,ill9ois1 ,ms4 ,jayapal1
 ,mr4 ,johnson ( ,georgia1 ,ms4 ,kaptur1
 ,ms4 ,kelly ( ,ill9ois1 ,mr4 ,k5n$y (  
,new ,york1 ,mr4 ,khanna1 ,mr4 ,l&sman1 
,mr4 ,l>son ( ,connecticut1 ,ms4 ,lee ( 
,p5nsylvania1 ,mr4 ,lieu1 ,mr4 ,lyn*1   
,mr4 ,magaz9]1 ,mrs4 ,mc,bath1 ,ms4     
,mc,bride1 ,ms4 ,mc,collum1 ,mr4        
,mc,garvey1 ,mr4 ,mc,govern1 ,mr4       
,meeks1 ,mr4 ,m55dez1 ,ms4 ,m5g1 ,mr4   
,mfume1 ,mr4 ,m\lton1 ,mr4 ,mrvan1 ,mr4 
,nadl]1 ,mr4 ,neguse1 ,mr4 ,norcross1   
,ms4 ,norton1 ,ms4 ,ocasio-,cortez1 ,ms4
 ,om>1 ,mr4 ,pallone1 ,ms4 ,p]ez1 ,ms4  
,p+ree1 ,mr4 ,pocan1 ,ms4 ,pressley1    
,mrs4 ,ramirez1 ,mr4 ,rask91 ,mr4 ,riley
 ( ,new ,york1 ,ms4 ,ross1 ,mr4 ,ryan1  
,ms4 ,sal9as1 ,ms4 ,scanlon1 ,ms4       
,s*ak[sky1 ,mr4 ,%]man1 ,mr4 ,smi? (    
,wa%+ton1 ,mr4 ,soto1 ,ms4 ,/ansbury1   
,ms4 ,/ev5s1 ,mrs4 ,sykes1 ,mr4 ,takano1
 ,mr4 ,?an$>1 ,mr4 ,?ompson (           

,mississippi1 ,ms4 ,titus1 ,ms4 ,tlaib1 
,ms4 ,tokuda1 ,mr4 ,tonko1 ,mrs4 ,torres
 ( ,cali=nia1 ,mrs4 ,trahan1 ,mr4 ,turn]
 ( ,texas1 ,mr4 ,v>gas1 ,ms4 ,velzquez1 
,ms4 ,wass]man ,s*ultz1 ,ms4 ,wat]s1    
,mrs4 ,watson ,coleman1 ,ms4 ,williams (
 ,georgia1 & ,ms4 ,wilson ( ,florida7   
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to provide = curr5t ye>   
inclusion ( net ,,cfc te/$ income1 & =  
o!r purposes4  #a4 ,%ort title1 etc  7a7
 ,%ort title ,?is ,act may be cit$ z !  
,no ,tax ,breaks = ,outs\rc+ ,act4  7b7 
,am5dm5t ( #aihf code ,except z o!rwise 
expressly provid$1 :5ev] 9 ?is ,act an  
am5dm5t or repeal is express$ 9 t]ms (  
an am5dm5t to1 or repeal (1 a section or
 o!r provision1 ! ref]5ce %all be       
consid]$ to be made to a section or o!r 
provision ( ! ,int]nal ,rev5ue ,code (  
#aihf4  7c7 ,table ( cont5ts ,! table ( 
cont5ts ( ?is ,act is z foll[s3 ,sec4   
#a4 ,%ort title1 etc4 ,sec4 #b4 ,curr5t 

ye> inclusion ( net ,,cfc te/$ income4  
,sec4 #c4 ,c\ntry-by-c\ntry application 
( limitation on =eign tax cr$it bas$ on 
taxable units4 ,sec4 #d4 ,limitation on 
d$uction ( int]e/ by dome/ic            
corporations :i* are memb]s ( an        
int]national f9ancial report+ gr\p4     
,sec4 #e4 ,modifications to rules relat+
 to inv]t$ corporations4 ,sec4 #f4      
,treatm5t ( =eign corporations manag$ & 
controll$ 9 ! ,unit$ ,/ates z dome/ic   
corporations4  #b4 ,curr5t ye> inclusion
 ( net ,,cfc te/$ income  7a7 ,repeal ( 
tax-,free deem$ return on inve/m5ts     
7#a7 ,9 g5]al ,section #iea;,a7a7 is    
am5d$ by /rik+ global intangible l[-tax$
 income & ins]t+ net ,,cfc te/$ income4 
7#b7 ,con=m+ am5dm5ts  7,a7 ,section    
#iea;,a is am5d$ by /rik+ subsections   
7b7 & 7d74  7,b7 ,section #iea;,a7e77#a7
 is am5d$ by /rik+ subsections 7b71     
7c77#a77;,a71 & & ins]t+ subsections    
7c77#a77;,a7 &4  7,c7 ,section          
#iea;,a7f7 is am5d$ by /rik+ global     
intangible l[-tax$ income ea* place x   

appe>s & ins]t+ net ,,cfc te/$ income4  
7,d7 ,section #ifj7;d77#b77;,a7 is am5d$
 by /rik+ global intangible l[-tax$     
income 7z def9$ 9 section #iea;,a7b77 & 
ins]t+ net ,,cfc te/$ income 7z def9$ 9 
section #iea;,a7c774  7b7               
,c\ntry-by-,c\ntry application ( section
 bas$ on ,,cfc taxable units ,section   
#iea;,a is am5d$ by add+ at ! end !     
foll[+ new subsection3  7g7             
,c\ntry-by-,c\ntry application ( section
 bas$ on ,,cfc taxable units  7#a7 ,9   
g5]al ,if any ,,cfc taxable unit ( a    
,unit$ ,/ates %>ehold] is a tax resid5t 
( 7or1 9 ! case ( a bran*1 is locat$ 97 
a c\ntry :i* is diff]5t f ! c\ntry )    
respect to :i* any o!r ,,cfc taxable    
unit ( su* ,unit$ ,/ates %>ehold] is a  
tax resid5t 7or1 9 ! case ( a bran*1 is 
locat$ 97--  7,a7 su* %>ehold]'s net    
,,cfc te/$ income = purposes (          
subsection 7a7 %all be ! sum ( ! am\nts 
( net ,,cfc te/$ income det]m9$         
sep>ately ) respect to ea* su* c\ntry1 &
  7,b7 = purposes ( det]m9+ su* sep>ate 

am\nts ( net ,,cfc te/$ income--  7i7   
except z o!rwise provid$ by ! ,secret>y1
 any ref]5ce 9 subsection 7c7 to a      
controll$ =eign corporation ( su*       
%>ehold] %all be treat$ z ref]5ce to a  
,,cfc taxable unit ( su* %>ehold]1 &    
7ii7 net ,,cfc te/$ income & su* o!r    
items & am\nts z ! ,secret>y may        
provide1 %all be det]m9$ sep>ately )    
respect to ea* su* c\ntry by det]m9+ su*
 am\nts ) respect to ! ,,cfc taxable    
units ( su* %>ehold] :i* are a tax      
resid5t ( su* c\ntry4  7#b7 ,def9itions 
,= purposes ( ?is subsection-- 7,a7     
,,cfc taxable unit ,! t]m ,,cfc taxable 
unit means any taxable unit describ$ 9  
clause 7ii71 7iii71 or 7iv7 ( section   
#ijd7;e77#b77;,b71 det]m9$--  7i7 by    
sub/itut+ controll$ =eign corporation = 
=eign corporation ea* place x appe>s 9  
su* clauses1 &  7ii7 )\t reg>d to !     
ref]5ces to ! taxpay] 9 clauses 7iii7 & 
7iv7 ( su* section4  7,b7 ,application (
 o!r def9itions ,t]ms us$ 9 ?is         
subsection :i* are also us$ 9 section   

#ijd7;e7 %all h ! same mean+ z :5 us$ 9 
section #ijd7;e74  7#c7 ,special rules  
,= purposes ( ?is subsection--  7,a7    
,application ( c]ta9 rules ,except z    
o!rwise provid$ by ! ,secret>y1 rules   
simil> to ! rules ( section #ijd7;e7    
%all apply4  7,b7 ,allocation ( net     
,,cfc te/$ income to controll$ =eign    
corporations ,except z o!rwise provid$  
by ! ,secret>y1 subsection 7f77#b7 %all 
be appli$ sep>ately ) respect to ea*    
,,cfc taxable unit4  4  7c7 ,regulatory 
au?ority ,section #iea;,a1 z am5d$ by   
subsection 7b71 is am5d$ by add+ at !   
end ! foll[+ new subsection3  7h7       
,regulations ,! ,secret>y %all issue su*
 regulations or o!r guidance z may be   
necess>y or appropriate to c>ry out1 or 
prev5t ! avoidance (1 ! purposes ( ?is  
section1 includ+ regulations or guidance
 :i* provide =--  7#a7 ! treatm5t (     
prop]ty if su* prop]ty is transf]r$1 or 
held1 tempor>ily1  7#b7 ! treatm5t (    
prop]ty if ! avoidance ( ! purposes (   
?is section is a factor 9 ! transf] or  

hold+ ( su* prop]ty1  7#c7 appropriate  
adju/m5ts to ! basis ( /ock & o!r       
own]%ip int]e/s1 & to e>n+s & pr(its1 to
 reflect te/$ losses 7:e!r or n tak5    
into acc\nt 9 det]m9+ net ,,cfc te/$    
income71  7#d7 rules simil> to ! rules  
provid$ "u ! regulations or guidance    
issu$ "u section #ijd7;e77#d71  7#e7 o!r
 appropriate basis adju/m5ts1  7#f7     
appropriate adju/m5ts to be made1 &     
appropriate tax attributes & records to 
be ma9ta9$1 sep>ately ) respect to ,,cfc
 taxable units1 &  7#g7 appropriate     
adju/m5ts 9 det]m9+ te/$ income or te/$ 
loss if prop]ty is transf]r$ betwe5     
relat$ p>ties or am\nts are paid or     
accru$ betwe5 relat$ p>ties4  4  7d7    
,coord9ation ) o!r provisions ,section  
#iea;,a7f77#a7 is am5d$ by add+ at ! end
 ! foll[+ new subp>agraph3  7,c7        
,treatm5t ( c]ta9 ref]5ces ,except z    
o!rwise provid$ by ! ,secret>y1 ref]5ces
 to section #iea or section #iea7;a7 9  
sections #iei1 #ifa1 #ifb1 & su* o!r    
provisions z ! ,secret>y may id5tify    

%all include ref]5ces to section #iea;,a
 or section #iea;,a7a71 respectively4  4
  7e7 ,repeal ( r$uc$ rate ( tax on net 
,,cfc te/$ income & =eign-,d]iv$        
intangible income  7#a7 ,9 g5]al ,"p    
,,viii ( sub*apt] ,b ( *apt] #a is am5d$
 by /rik+ section #bej 7& by /rik+ !    
item relat+ to su* section 9 ! table (  
sections ( su* "p74  7#b7 ,con=m+       
am5dm5ts  7,a7 ,section                 
#ei;,a7c77#d77;,b77i7 is am5d$ by /rik+ 
section #agb1 #bde;,a1 or #bej & ins]t+ 
section #agb or #bde;,a4  7,b7 ,section 
#agb7;d7 is am5d$ by /rik+ p>agraph     
7#i74  7,c7 ,section #bdf7;b77#a7 is    
am5d$-- 7i7 by /rik+ subsection 7a7 &   
7b7 ( section #bde1 & section #bej &    
ins]t+ & subsection 7a7 & 7b7 ( section 
#bde2 &  7ii7 by /rik+ subsection 7a7 & 
7b7 ( section #bde1 & #bej & ins]t+ &   
subsection 7a7 & 7b7 ( section #bde4    
7,d7 ,section #dfi7;i77#c77;,e77iii7 is 
am5d$ by /rik+ 1 #bba1 & #bej & ins]t+ &
 #bba4  7f7 ,repeal ( c]ta9 exclusions f
 ! det]m9ation ( te/$ income ,section   

#iea;,a7c77#b77;,a77i7 is am5d$-- 7#a7  
by /rik+ subclauses 7,,iii7 & 7,v71     
7#b7 by r$esignat+ subclause 7,,iv7 z   
subclause 7,,iii71  7#c7 by add+ & at ! 
end ( subclause 7,,ii71 &  7#d7 by /rik+
 & at ! end ( subclause 7,,iii7 7z s    
r$esignat$7 & ins]t+ ov]4  7g7 ,increase
 9 deem$ paid cr$it = taxes prop]ly     
attributable to te/$ income  7#a7 ,9    
g5]al ,section #ifj7;d7 is am5d$ by     
/rik+ #hj p]c5t (4  7#b7 ,con=m+ am5dm5t
 ,section #gh is am5d$ by /rik+ 7det]m9$
 )\t reg>d to ! phrase 8#hj p]c5t (0 9  
subsection 7d77#a7 !re(74  7h7 ,repeal (
 high tax exclusion = =eign base company
 income & insurance income  7#a7 ,9     
g5]al ,section #ied7;b7 is am5d$ by     
/rik+ p>agraph 7#d74  7#b7 ,con=m+      
am5dm5t ,section #ijd7;d77#c77;,e7 is   
am5d$ by /rik+ ! la/ s5t5ce4  7i7       
,elim9ation ( c>ryback ( =eign tax cr$it
  7#a7 ,9 g5]al ,section #ijd7;c7 is    
am5d$--  7,a7 by /rik+ 9 ! fir/ prec$+  
taxable ye> & 9 any ( ! fir/ #aj succe$+
 taxable ye>s1 9 t ord] & ins]t+ 9 any (

 ! fir/ #aj succe$+ taxable ye>s1 9     
ord]1  7,b7 by /rik+ prec$+ or ea* place
 x appe>s1 &  7,c7 by /rik+ ,c>ryback & 
9 ! head+ !re(4  7#b7 ,application to   
limitation on =eign oil & gas taxes     
,section #ijg7;f7 is am5d$--  7,a7 9    
p>agraph 7#a71 by /rik+ 9 ! fir/ prec$+ 
taxable ye> &1  7,b7 9 p>agraph 7#b71 by
 /rik+ prec$+ or 9 ! matt] prec$+       
subp>agraph 7,a71  7,c7 9 p>agraph      
7#c77;,b7-- 7i7 by /rik+ 9 a prec$+ or  
succe$+ & ins]t+ 9 a succe$+1 &  7ii7 by
 /rik+ 9 su* prec$+ or succe$+ bo?      
places x appe>s & ins]t+ 9 su* succe$+1 
&  7,d7 9 ! head+1 by /rik+ ,c>ryback &4
  7j7 ,treatm5t ( =eign base company oil
 relat$ income z subp>t ,f income  7#a7 
,9 g5]al ,section #ied7;a7 is am5d$ by  
/rik+ & at ! end ( p>agraph 7#b71 by    
/rik+ ! p]iod at ! end ( p>agraph 7#c7 &
 ins]t+ 1 &1 & by add+ at ! end ! foll[+
 new p>agraph3  7#d7 ! =eign base       
company oil relat$ income = ! taxable   
ye> 7det]m9$ "u subsection 7f7 & r$uc$ z
 provid$ 9 subsection 7b77#e774  4  7#b7

 ,=eign base company oil relat$ income  
,section #ied is am5d$ by ins]t+ aft]   
subsection 7e7 ! foll[+ new subsection3 
7f7 ,=eign base company oil relat$      
income ,= purposes ( ?is section1 ! t]m 
=eign base company oil relat$ income    
means =eign oil relat$ income 7)9 !     
mean+ ( p>agraphs 7#b7 & 7#c7 ( section 
#ijg7;c77 o!r ?an income d]iv$ f a s\rce
 )9 a =eign c\ntry 9 connection )--     
7#a7 oil or gas :i* 0 extract$ f an oil 
or gas well locat$ 9 su* =eign c\ntry1  
or  7#b7 oil1 gas1 or a prim>y product (
 oil or gas :i* is sold by ! =eign      
corporation or a relat$ p]son = use or  
consumption )9 su* c\ntry or is load$ 9 
su* c\ntry on a vessel or aircraft z    
fuel = su* vessel or aircraft4  ,su* t]m
 %all n include any =eign p]sonal hold+ 
company income 7z def9$ 9 subsection    
7c774  4  7#c7 ,con=m+ am5dm5ts  7,a7   
,section #ieb7;c77#a77;,b77iii7 is am5d$
 by r$esignat+ subclauses 7,,iii7 &     
7,,iv7 z subclauses 7,,iv7 & 7,v71      
respectively1 & by ins]t+ aft] subclause

 7,,ii7 ! foll[+ new subclause3  7,,iii7
 =eign base company oil relat$ income4  
4  7,b7 ,section #ied7;b7 is am5d$-- 7i7
 by /rik+ & ! =eign base company s]vices
 income 9 p>agraph 7#e7 & ins]t+ ! =eign
 base company s]vices income1 & ! =eign 
base company oil relat$ income1 &  7ii7 
by add+ at ! end ! foll[+ new p>agraph3 
7#f7 ,=eign base company oil relat$     
income n treat$ z ano!r k9d ( =eign base
 company income ,income ( a corporation 
:i* is =eign base company oil relat$    
income %all n be consid]$ =eign base    
company income ( su* corporation "u     
p>agraph 7#b7 or 7#c7 ( subsection 7a74 
4  7k7 ,effective dates  7#a7 ,9 g5]al  
,except z o!rwise provid$ 9 ?is         
subsection1 ! am5dm5ts made by ?is      
section %all apply to taxable ye>s (    
=eign corporations beg9n+ aft] ,decemb] 
#ca1 #bjbd1 & to taxable ye>s ( ,unit$  
,/ates %>ehold]s 9 :i* or ) :i* su*     
taxable ye>s ( =eign corporations end4  
7#b7 ,regulatory au?ority & coord9ation 
) o!r provisions ,! am5dm5ts made by    

subsections 7c7 & 7d7 %all apply to     
taxable ye>s ( =eign corporations beg9n+
 aft] ! date ( ! enactm5t ( ?is ,act1 & 
to taxable ye>s ( ,unit$ ,/ates         
%>ehold]s 9 :i* or ) :i* su* taxable    
ye>s ( =eign corporations end4  7#c7    
,repeal ( r$uc$ rate ( tax2 increase 9  
deem$ paid cr$it ,! am5dm5ts made by    
subsections 7e7 & 7g7 %all apply to     
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbd4  7#d7 ,elim9ation ( c>ryback (   
=eign tax cr$it ,! am5dm5t made by      
subsection 7i7 %all apply to cr$its     
aris+ 9 taxable ye>s beg9n+ aft]        
,decemb] #ca1 #bjbd4  7l7 ,no inf]5ce   
reg>d+ c]ta9 modifications ,! am5dm5ts  
made by subsections 7c7 & 7d7 %all n be 
con/ru$ to create any inf]5ce ) respect 
to ! prop] application ( any provision (
 ! ,int]nal ,rev5ue ,code ( #aihf )     
respect to any taxable ye> beg9n+ be=e !
 taxable ye>s to :i* su* am5dm5ts apply4
  #c4 ,c\ntry-by-c\ntry application (   
limitation on =eign tax cr$it bas$ on   
taxable units  7a7 ,9 g5]al ,section    

#ijd is am5d$ by ins]t+ aft] subsection 
7d7 ! foll[+ new subsection3  7e7       
,c\ntry-by-,c\ntry application bas$ on  
taxable units  7#a7 ,9 g5]al ,subsection
 7d7 7& ! provisions ( ?is title ref]r$ 
to 9 p>agraph 7#a7 ( su* subsection7    
%all be appli$ sep>ately ) respect to   
ea* c\ntry by tak+ into acc\nt !        
aggregate income prop]ly attributable or
 o!rwise allocable to a taxable unit ( !
 taxpay] :i* is a tax resid5t ( 7or1 9 !
 case ( a bran*1 is locat$ 97 su*       
c\ntry4  7#b7 ,taxable units  7,a7 ,9   
g5]al ,except z o!rwise provid$ by !    
,secret>y1 ea* item %all be attributable
 or o!rwise allocable to exactly "o     
taxable unit ( ! taxpay]4  7,b7         
,det]m9ation ( taxable units ,except z  
o!rwise provid$ by ! ,secret>y1 !       
taxable units ( a taxpay] are z foll[s3 
7i7 ,g5]al taxable unit ,! p]son t is ! 
taxpay] & t is n o!rwise describ$ 9 a   
sep>ate clause ( ?is subp>agraph4  7ii7 
,c]ta9 =eign corporations ,ea* =eign    
corporation ) respect to :i* ! taxpay]  

is a ,unit$ ,/ates %>ehold]4  7iii7     
,int]e/s 9 pass-?r\gh entities ,ea*     
int]e/ held 7directly or indirectly7 by 
! taxpay] or any =eign corporation      
ref]r$ to 9 clause 7ii7 9 a pass-?r\gh  
entity if su* pass-?r\gh entity is a tax
 resid5t ( a c\ntry o!r ?an ! c\ntry )  
respect to :i* su* taxpay] or =eign     
corporation 7z ! case may be7 is a tax  
resid5t4  7iv7 ,bran*es ,ea* bran* 7or  
portion !re(7 ! activities ( :i* are    
directly or indirectly c>ri$ on by !    
taxpay] or any =eign corporation ref]r$ 
to 9 clause 7ii7 & :i* give rise to a   
taxable pres5ce 9 a c\ntry o!r ?an !    
c\ntry ) respect to :i* su* taxpay] or  
=eign corporation 7z ! case may be7 is a
 tax resid5t4  7#c7 ,def9itions &       
special rules ,= purposes ( ?is         
subsection--  7,a7 ,tax resid5t ,except 
z o!rwise provid$ by ! ,secret>y1 ! t]m 
tax resid5t means a p]son or entity     
subject to tax "u ! tax law ( a c\ntry z
 a resid5t4 ,if an entity is organiz$ "u
 ! law ( a c\ntry1 or resid5t 9 a       

c\ntry1 t does n impose an income tax ) 
respect to su* entities1 su* entity     
%all1 except z provid$ by ! ,secret>y1  
be treat$ z subject to tax "u ! tax law 
( su* c\ntry = ! purposes ( ! prec$+    
s5t5ce4  7,b7 ,pass-?r\gh entity ,except
 z o!rwise provid$ by ! ,secret>y1 ! t]m
 pass-?r\gh entity includes any p>tn]%ip
 or o!r entity to ! ext5t t income1 ga91
 d$uction1 or loss ( ! entity is tak5   
into acc\nt 9 det]m9+ ! income or loss (
 a p]son t owns 7directly or indirectly7
 an int]e/ 9 su* entity4  7,c7 ,bran*   
,except z o!rwise provid$ by !          
,secret>y1 ! t]m bran* means a taxable  
pres5ce ( a tax resid5t 9 a c\ntry o!r  
?an its c\ntry ( resid5ce z det]m9$ "u  
su* o!r c\ntry's tax law4 ,! ,secret>y  
%all provide regulations or o!r guidance
 apply+ su* t]m to activities 9 a c\ntry
 t d n give rise to a taxable pres5ce4  
7,d7 ,treatm5t ( fiscally autonom\s     
jurisdictions ,any fiscally autonom\s   
jurisdiction %all be treat$ z a sep>ate 
c\ntry4 ,any possession ( ! ,unit$      

,/ates %all also be treat$ z a sep>ate  
c\ntry4  7,e7 ,possession ( ! ,unit$    
,/ates ,! t]m possession ( ! ,unit$     
,/ates means ea* ( ,am]ican ,samoa1 !   
,commonweal? ( ! ,nor!rn ,m>iana ,isl&s1
 ! ,commonweal? ( ,pu]to ,rico1 ,guam1 &
 ! ,virg9 ,isl&s4  7#d7 ,regulations ,! 
,secret>y %all issue su* regulations or 
o!r guidance z may be necess>y or       
appropriate to c>ry out1 or prev5t      
avoidance (1 ! purposes ( ?is           
subsection1 includ+ regulations or o!r  
guidance--  7,a7 provid+ = ! application
 ( ?is subsection to an entity or       
arrangem5t t is consid]$ a tax resid5t (
 m ?an "o c\ntry or ( no c\ntry1  7,b7  
provid+ = ! application ( ?is subsection
 to hybrid entities or hybrid           
transactions 7z su* t]ms are us$ =      
purposes ( section #bfg;,a71 pass-?r\gh 
entities1 passive =eign inve/m5t        
companies1 tru/s1 & o!r entities or     
arrangem5ts n o!rwise describ$ 9 ?is    
subsection1 &  7,c7 provid+ = !         
assignm5t ( any item 7includ+ =eign     

taxes & d$uctions7 to taxable units1    
includ+ 9 ! case ( am\nts n o!rwise tak5
 into acc\nt 9 det]m9+ taxable income "u
 ?is *apt]4  4  7b7 ,treatm5t (         
inadequate sub/antiation ,section       
#ijd7;d77#d77;,c77ii7 is am5d$ by /rik+ 
p>agraph 7#a77;,a7 & ins]t+ p>agraph    
7#a77;,c74  7c7 ,application ( =eign tax
 cr$it limitation ) respect to =eign    
bran*es ,section #ijd7;d77#b77;,j77i7 is
 am5d$-- 7#a7 by /rik+ qualifi$ bus9ess 
units 7z def9$ 9 section #ihi7;a77 9 #a 
or m =eign c\ntries & ins]t+ =eign      
bran*es describ$ 9 section              
#ijd7;e77#b77;,b77iv71 &  7#b7 by /rik+ 
a qualifi$ bus9ess unit & ins]t+ a =eign
 bran*4  7d7 ,effective date ,! am5dm5ts
 made by ?is section %all apply to      
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbd4  #d4 ,limitation on d$uction (   
int]e/ by dome/ic corporations :i* are  
memb]s ( an int]national f9ancial       
report+ gr\p  7a7 ,9 g5]al ,section #afc
 is am5d$ by r$esignat+ subsection 7n7 z
 subsection 7p7 & by ins]t+ aft]        

subsection 7m7 ! foll[+ new subsection3 
7n7 ,limitation on d$uction ( int]e/ by 
dome/ic corporations 9 int]national     
f9ancial report+ gr\ps  7#a7 ,9 g5]al ,9
 ! case ( any dome/ic corporation :i* is
 a memb] ( any int]national f9ancial    
report+ gr\p1 ! d$uction "u ?is *apt] = 
int]e/ paid or accru$ dur+ ! taxable ye>
 %all n exce$ ! sum (--  7,a7 ! all[able
 p]c5tage ( #aaj p]c5t ( ! excess 7if   
any7 (-- 7i7 ! am\nt ( su* int]e/ s paid
 or accru$1 ov]  7ii7 ! am\nt describ$ 9
 subp>agraph 7,b71 plus  7,b7 ! am\nt ( 
int]e/ includible 9 gross income ( su*  
corporation = su* taxable ye>4  7#b7    
,int]national f9ancial report+ gr\p     
7,a7 ,= purposes ( ?is subsection1 ! t]m
 int]national f9ancial report+ gr\p     
means1 ) respect to any report+ ye>1 any
 gr\p ( entities :i*-- 7i7 includes--   
7,i7 at lea/ "o =eign corporation engag$
 9 a trade or bus9ess )9 ! ,unit$       
,/ates1 or  7,,ii7 at lea/ "o dome/ic   
corporation & "o =eign corporation1     
7ii7 prep>es consolidat$ f9ancial       

/atem5ts ) respect to su* ye>1 &  7iii7 
reports 9 su* /atem5ts av]age annual    
gross receipts 7det]m9$ 9 ! aggregate ) 
respect to all entities :i* are "p ( su*
 gr\p7 = ! #c-report+-ye> p]iod end+ )  
su* report+ ye> 9 excess ( #ajj1jjj1jjj4
  7,b7 ,rules relat+ to det]m9ation (   
av]age gross receipts ,= purposes (     
subp>agraph 7,a77iii71 rules simil> to !
 rules ( section #ddh7;c77#c7 %all      
apply4  7#c7 ,all[able p]c5tage ,=      
purposes ( ?is subsection--  7,a7 ,9    
g5]al ,! t]m all[able p]c5tage means1 ) 
respect to any dome/ic corporation = any
 taxable ye>1 ! ratio 7express$ z a     
p]c5tage & n great] ?an #ajj p]c5t7 (-- 
7i7 su* corporation's allocable %>e ( ! 
int]national f9ancial report+ gr\p's    
report$ net int]e/ exp5se = ! report+   
ye> ( su* gr\p :i* ends 9 or ) su*      
taxable ye> ( su* corporation1 ov]  7ii7
 su* corporation's report$ net int]e/   
exp5se = su* report+ ye> ( su* gr\p4    
7,b7 ,report$ net int]e/ exp5se ,! t]m  
report$ net int]e/ exp5se means--  7i7 )

 respect to any int]national f9ancial   
report+ gr\p = any report+ ye>1 ! excess
 (-- 7,i7 ! aggregate am\nt ( int]e/    
exp5se report$ 9 su* gr\p's consolidat$ 
f9ancial /atem5ts = su* taxable ye>1 ov]
  7,,ii7 ! aggregate am\nt ( int]e/     
income report$ 9 su* gr\p's consolidat$ 
f9ancial /atem5ts = su* taxable ye>1 &  
7ii7 ) respect to any dome/ic           
corporation = any report+ ye>1 ! excess 
(--  7,i7 ! am\nt ( int]e/ exp5se ( su* 
corporation report$ 9 ! books & records 
( ! int]national f9ancial report+ gr\p  
:i* are us$ 9 prep>+ su* gr\p's         
consolidat$ f9ancial /atem5ts = su*     
taxable ye>1 ov]  7,,ii7 ! am\nt (      
int]e/ income ( su* corporation report$ 
9 su* books & records4  7,c7 ,allocable 
%>e ( report$ net int]e/ exp5se ,)      
respect to any dome/ic corporation :i*  
is a memb] ( any int]national f9ancial  
report+ gr\p1 su* corporation's         
allocable %>e ( su* gr\p's report$ net  
int]e/ exp5se = any report+ ye> is !    
portion ( su* exp5se :i* be>s ! same    

ratio to su* exp5se z-- 7i7 ! ,,ebitda (
 su* corporation = su* report+ ye>1 be>s
 to  7ii7 ! ,,ebitda ( su* gr\p = su*   
report+ ye>4  7,d7 ,,ebitda  7i7 ,9     
g5]al ,! t]m ,,ebitda means1 ) respect  
to any report+ ye>1 e>n+s be=e int]e/1  
taxes1 depreciation1 & amortization--   
7,i7 z det]m9$ 9 ! int]national f9ancial
 report+ gr\p's consolidat$ f9ancial    
/atem5ts = su* ye>1 or  7,,ii7 =        
purposes ( subp>agraph 7,a77i71 z       
det]m9$ 9 ! books & records ( !         
int]national f9ancial report+ gr\p :i*  
are us$ 9 prep>+ su* /atem5ts if n      
det]m9$ 9 su* /atem5ts4  7ii7 ,treatm5t 
( disreg>d$ entities ,! ,,ebitda ( any  
dome/ic corporation %all n fail to      
include ! ,,ebitda ( any entity :i* is  
disreg>d$ = purposes ( ?is *apt]4  7iii7
 ,treatm5t ( intra-gr\p di/ributions ,! 
,,ebitda ( any dome/ic corporation %all 
be det]m9$ )\t reg>d to any di/ribution 
receiv$ by su* corporation f any o!r    
memb] ( ! int]national f9ancial report+ 
gr\p4  7,e7 ,special rules =            

non-positive ,,ebitda  7i7 ,non-positive
 gr\p ,,ebitda ,9 ! case ( any          
int]national f9ancial report+ gr\p !    
,,ebitda ( :i* is z]o or less1 p>agraph 
7#a7 %all n apply to any memb] ( su*    
gr\p ! ,,ebitda ( :i* is above z]o4     
7ii7 ,non-positive entity ,,ebitda ,9 ! 
case ( any gr\p memb] ! ,,ebitda ( :i*  
is z]o or less1 p>agraph 7#a7 %all be   
appli$ )\t reg>d to subp>agraph 7,a7    
!re(4  7#d7 ,consolidat$ f9ancial       
/atem5t ,= purposes ( ?is subsection1 ! 
t]m consolidat$ f9ancial /atem5t means  
any consolidat$ f9ancial /atem5t        
describ$ 9 p>agraph 7#b77;,a77ii7 if su*
 /atem5t is-- 7,a7 a f9ancial /atem5t   
:i* is c]tifi$ z be+ prep>$ 9 accordance
 ) g5]ally accept$ acc\nt+ pr9ciples1   
int]national f9ancial report+ /&>ds1 or 
any o!r comp>able me?od ( acc\nt+       
id5tifi$ by ! ,secret>y1 & :i* is--  7i7
 a #aj-,k 7or successor =m71 or annual  
/atem5t to %>ehold]s1 requir$ to be fil$
 ) ! ,unit$ ,/ates ,securities &        
,ex*ange ,commission1  7ii7 an audit$   

f9ancial /atem5t :i* is us$ =--  7,i7   
cr$it purposes1  7,,ii7 report+ to      
%>ehold]s1 p>tn]s1 or o!r proprietors1  
or to b5efici>ies1 or  7,,iii7 any o!r  
sub/antial nontax purpose1  b only if   
!re is no /atem5t describ$ 9 clause 7i71
 or  7iii7 fil$ ) any o!r ,f$]al or     
,/ate ag5cy = nontax purposes1 b only if
 !re is no /atem5t describ$ 9 clause 7i7
 or 7ii71 or  7,b7 a f9ancial /atem5t   
:i*-- 7i7 is us$ = a purpose describ$ 9 
subclause 7,i71 7,,ii71 or 7,,iii7 (    
subp>agraph 7,a77ii71 or  7ii7 fil$ )   
any regulatory or gov]nm5tal body 7:e!r 
dome/ic or =eign7 specifi$ by !         
,secret>y1  b only if !re is no /atem5t 
describ$ 9 subp>agraph 7,a74  7#e7      
,report+ ye> ,= purposes ( ?is          
subsection1 ! t]m report+ ye> means1 )  
respect to any int]national f9ancial    
report+ gr\p1 ! ye> ) respect to :i* !  
consolidat$ f9ancial /atem5ts are       
prep>$4  7#f7 ,application to c]ta9     
entities  7,a7 ,p>tn]%ips ,except z     
o!rwise provid$ by ! ,secret>y 9        

p>agraph 7#g71 ?is subsection &         
subsection 7o7 %all apply to any        
p>tn]%ip :i* is a memb] ( any           
int]national f9ancial report+ gr\p "u   
rules simil> to ! rules ( section       
#afc7;j77#d74  7,b7 ,=eign corporations 
engag$ 9 trade or bus9ess )9 ! ,unit$   
,/ates ,except z o!rwise provid$ by !   
,secret>y 9 p>agraph 7#g71 any d$uction 
= int]e/ paid or accru$ by a =eign      
corporation engag$ 9 a trade or bus9ess 
)9 ! ,unit$ ,/ates %all be limit$ 9 a   
mann] consi/5t ) ! pr9ciples ( ?is      
subsection4  7,c7 ,consolidat$ gr\ps ,= 
purposes ( ?is subsection1 ! memb]s (   
any gr\p t file 7or are requir$ to file7
 a consolidat$ return ) respect to ! tax
 impos$ by *apt] #a = a taxable ye> %all
 be treat$ z a s+le corporation4  7#g7  
,regulations ,! ,secret>y may issue su* 
regulations or o!r guidance z are       
necess>y or appropriate to c>ry out !   
purposes ( ?is subsection4  4  7b7      
,c>ry=w>d ( disall[$ int]e/  7#a7 ,9    
g5]al ,section #afc is am5d$ by ins]t+  

aft] subsection 7n71 z add$ by          
subsection 7a71 ! foll[+ new subsection3
  7o7 ,c>ry=w>d ( c]ta9 disall[$ int]e/ 
,! am\nt ( any int]e/ n all[$ z a       
d$uction = any taxable ye> by reason (  
subsection 7j77#a7 or 7n77#a7 7:i*ev]   
imposes ! l[] limitation ) respect to   
su* taxable ye>7 %all be treat$ z int]e/
 7& z bus9ess int]e/ = purposes (       
subsection 7j77#a77 paid or accru$ 7& z 
int]e/ exp5se report$ z describ$ 9      
clause 7i77,i7 or 7ii77,i7 ( subsection 
7n77#c77;,b71 z ! case may be7 9 !      
succe$+ taxable ye>4 ,int]e/ paid or    
accru$ 9 any taxable ye> 7det]m9$ )\t   
reg>d to ! prec$+ s5t5ce7 %all n be     
c>ri$ pa/ ! fif? taxable ye> foll[+ su* 
taxable ye>1 det]m9$ by treat+ int]e/ z 
all[$ z a d$uction on a fir/-91 fir/-out
 basis4  4  7#b7 ,con=m+ am5dm5ts  7,a7 
,section #afc7;j77#b7 is am5d$ to read z
 foll[s3  7#b7 ,c>ry=w>d cross-ref]5ce  
,= c>ry=w>d treatm5t1 see subsection    
7o74  4  7,b7 ,section                  
#afc7;j77#d77;,b77i77,i7 is am5d$ by    

/rik+ p>agraph 7#b7 & ins]t+ subsection 
7o7 4  7,c7 ,section #cha7;c77#bj7 is   
am5d$ to read z foll[s3  7#bj7 ,c>ry=w>d
 ( disall[$ int]e/ ,! c>ryov] ( disall[$
 int]e/ describ$ 9 section #afc7o7 to   
taxable ye>s end+ aft] ! date (         
di/ribution or transf]4  4  7,d7        
,section #chb7;d77#c7 is am5d$ to read z
 foll[s3  7#c7 ,application to c>ry=w>d 
( disall[$ int]e/ ,! t]m pre-*ange loss 
%all include any c>ryov] ( disall[$     
int]e/ describ$ 9 section #afc7o7 "u    
rules simil> to ! rules ( p>agraph 7#a74
  4  7c7 ,effective date ,! am5dm5ts    
made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbd4  #e4 ,modifications to rules     
relat+ to inv]t$ corporations  7a7 ,9   
g5]al ,subsection 7b7 ( section #ghgd is
 am5d$ to read z foll[s3  7b7 ,inv]t$   
corporations treat$ z dome/ic           
corporations  7#a7 ,9 g5]al ,not)/&+    
section #ggja7;a77#d71 a =eign          
corporation %all be treat$ = purposes ( 
?is title z a dome/ic corporation if--  

7,a7 su* corporation w\ld be a surrogate
 =eign corporation if subsection 7a77#b7
 7 appli$ by sub/itut+ #hj p]c5t = #fj  
p]c5t1 or  7,b7 su* corporation is an   
inv]t$ dome/ic corporation4  7#b7       
,inv]t$ dome/ic corporation ,= purposes 
( ?is subsection1 a =eign corporation   
%all be treat$ z an inv]t$ dome/ic      
corporation if1 pursuant to a plan 7or a
 s]ies ( relat$ transactions7-- 7,a7 !  
entity completes aft] ,decemb] #bb1     
#bjag1 ! direct or indirect acquisition 
(--  7i7 sub/antially all ( ! prop]ties 
held directly or indirectly by a dome/ic
 corporation1 or  7ii7 sub/antially all 
( ! assets (1 or sub/antially all ( !   
prop]ties con/itut+ a trade or bus9ess  
(1 a dome/ic p>tn]%ip1 &  7,b7 aft] !   
acquisition1 ei!r-- 7i7 m ?an #ej p]c5t 
( ! /ock 7by vote or value7 ( ! entity  
is held--  7,i7 9 ! case ( an           
acquisition ) respect to a dome/ic      
corporation1 by =m] %>ehold]s ( !       
dome/ic corporation by reason ( hold+   
/ock 9 ! dome/ic corporation1 or  7,,ii7

 9 ! case ( an acquisition ) respect to 
a dome/ic p>tn]%ip1 by =m] p>tn]s ( !   
dome/ic p>tn]%ip by reason ( hold+ a    
capital or pr(its int]e/ 9 ! dome/ic    
p>tn]%ip1 or  7ii7 ! managem5t & control
 ( ! exp&$ affiliat$ gr\p :i* includes !
 entity occurs1 directly or indirectly1 
prim>ily )9 ! ,unit$ ,/ates1 & su* exp&$
 affiliat$ gr\p has significant dome/ic 
bus9ess activities4  7#c7 ,exception =  
corporations ) sub/antial bus9ess       
activities 9 =eign c\ntry ( organization
 ,a =eign corporation describ$ 9        
p>agraph 7#b7 %all n be treat$ z an     
inv]t$ dome/ic corporation if aft] !    
acquisition ! exp&$ affiliat$ gr\p :i*  
includes ! entity has sub/antial bus9ess
 activities 9 ! =eign c\ntry 9 :i* or "u
 ! law ( :i* ! entity is creat$ or      
organiz$ :5 comp>$ to ! total bus9ess   
activities ( su* exp&$ affiliat$ gr\p4  
,= purposes ( subsection                
7a77#b77;,b77iii7 & ! prec$+ s5t5ce1 !  
t]m sub/antial bus9ess activities %all h
 ! mean+ giv5 su* t]m "u regulations 9  

effect on ,decemb] #bb1 #bjag1 except t 
! ,secret>y may issue regulations       
increas+ ! ?re%old p]c5t 9 any ( ! te/s 
"u su* regulations = det]m9+ if bus9ess 
activities con/itute sub/antial bus9ess 
activities = purposes ( ?is p>agraph4   
7#d7 ,managem5t & control ,= purposes ( 
p>agraph 7#b77;,b77ii7-- 7,a7 ,9 g5]al  
,! ,secret>y %all prescribe regulations 
= purposes ( det]m9+ cases 9 :i* !      
managem5t & control ( an exp&$ affiliat$
 gr\p is to be treat$ z occurr+1        
directly or indirectly1 prim>ily )9 !   
,unit$ ,/ates4 ,! regulations prescrib$ 
"u ! prec$+ s5t5ce %all apply to p]iods 
aft] ,decemb] #bb1 #bjag4  7,b7         
,executive (fic]s & s5ior managem5t ,su*
 regulations %all provide t ! managem5t 
& control ( an exp&$ affiliat$ gr\p %all
 be treat$ z occurr+1 directly or       
indirectly1 prim>ily )9 ! ,unit$ ,/ates 
if sub/antially all ( ! executive (fic]s
 & s5ior managem5t ( ! exp&$ affiliat$  
gr\p :o ex]cise day-to-day              
responsibility = mak+ decisions involv+ 

/rategic1 f9ancial1 & op]ational        
policies ( ! exp&$ affiliat$ gr\p are   
bas$ or prim>ily locat$ )9 ! ,unit$     
,/ates4 ,individuals :o 9 fact ex]cise  
su* day-to-day responsibilities %all be 
treat$ z executive (fic]s & s5ior       
managem5t reg>dless ( _! title4  7#e7   
,significant dome/ic bus9ess activities 
,= purposes ( p>agraph 7#b77;,b77ii71 an
 exp&$ affiliat$ gr\p has significant   
dome/ic bus9ess activities if at lea/   
#be p]c5t (--  7,a7 ! employees ( ! gr\p
 are bas$ 9 ! ,unit$ ,/ates1  7,b7 !    
employee comp5sation incurr$ by ! gr\p  
is incurr$ ) respect to employees bas$ 9
 ! ,unit$ ,/ates1  7,c7 ! assets ( !    
gr\p are locat$ 9 ! ,unit$ ,/ates1 or   
7,d7 ! income ( ! gr\p is d]iv$ 9 !     
,unit$ ,/ates1  det]m9$ 9 ! same mann] z
 su* det]m9ations are made = purposes ( 
det]m9+ sub/antial bus9ess activities "u
 regulations ref]r$ to 9 p>agraph 7#c7 z
 9 effect on ,decemb] #bb1 #bjag1 b     
appli$ by treat+ all ref]5ces 9 su*     
regulations to =eign c\ntry & relevant  

=eign c\ntry z ref]5ces to ! ,unit$     
,/ates4 ,! ,secret>y may issue          
regulations decreas+ ! ?re%old p]c5t 9  
any ( ! te/s "u su* regulations =       
det]m9+ if bus9ess activities con/itute 
significant dome/ic bus9ess activities =
 purposes ( ?is p>agraph4  4  7b7       
,con=m+ am5dm5ts  7#a7 ,clause 7i7 (    
section #ghgd7;a77#b77;,b7 is am5d$ by  
/rik+ aft] ,m>* #d1 #bjjc1 & ins]t+ aft]
 ,m>* #d1 #bjjc1 & be=e ,decemb] #bc1   
#bjag14  7#b7 ,subsection 7c7 ( section 
#ghgd is am5d$--  7,a7 9 p>agraph 7#b7--
 7i7 by /rik+ subsection                
7a77#b77;,b77ii7 & ins]t+ subsections   
7a77#b77;,b77ii7 & 7b77#b77;,b77i72 &   
7ii7 by ins]t+ or 7b77#b77;,a7 aft]     
7a77#b77;,b77i7 9 subp>agraph 7,b72     
7,b7 9 p>agraph 7#c71 by ins]t+ or      
7b77#b77;,b77i71 z ! case may be1 aft]  
7a77#b77;,b77ii72  7,c7 9 p>agraph 7#e71
 by /rik+ subsection 7a77#b77;,b77ii7 & 
ins]t+ subsections 7a77#b77;,b77ii7 &   
7b77#b77;,b77i72 &  7,d7 9 p>agraph     
7#f71 by ins]t+ or inv]t$ dome/ic       

corporation1 z ! case may be1 aft]      
surrogate =eign corporation4  7c7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s end+ 
aft] ,decemb] #bb1 #bjag4  7d7 ,ext5sion
 ( limitation on assessm5t ,if ! p]iod (
 limitation on assessm5t ( tax result+ f
 ! am5dm5ts made by subsection 7a7      
expires be=e ! end ( ! #c-ye> p]iod     
beg9n+ on ! date ( ! enactm5t ( ?is     
,act1 su* assessm5t 7to ! ext5t         
attributable to su* am5dm5ts7 may1      
nev]!less1 be made be=e ! close ( su*   
#c-ye> p]iod4  #f4 ,treatm5t ( =eign    
corporations manag$ & controll$ 9 !     
,unit$ ,/ates z dome/ic corporations    
7a7 ,9 g5]al ,section #ggja is am5d$ by 
r$esignat+ subsection 7p7 z subsection  
7q7 & by ins]t+ aft] subsection 7o7 !   
foll[+ new subsection3  7p7 ,c]ta9      
corporations manag$ & controll$ 9 !     
,unit$ ,/ates treat$ z dome/ic = income 
tax  7#a7 ,9 g5]al ,not)/&+ subsection  
7a77#d71 9 ! case ( a corporation       
describ$ 9 p>agraph 7#b7 if--  7,a7 !   

corporation w\ld n o!rwise be treat$ z a
 dome/ic corporation = purposes ( ?is   
title1 b  7,b7 ! managem5t & control ( !
 corporation occurs1 directly or        
indirectly1 prim>ily )9 ! ,unit$ ,/ates1
  !n1 solely = purposes ( *apt] #a 7&   
any o!r provision ( ?is title relat+ to 
*apt] #a71 ! corporation %all be treat$ 
z a dome/ic corporation4  7#b7          
,corporation describ$  7,a7 ,9 g5]al ,a 
corporation is describ$ 9 ?is p>agraph  
if-- 7i7 ! /ock ( su* corporation is    
regul>ly trad$ on an e/abli%$ securities
 m>ket1 or  7ii7 ! aggregate gross      
assets ( su* corporation 7or any        
pr$ecessor !re(71 includ+ assets "u     
managem5t = inve/ors1 :e!r held directly
 or indirectly1 at any "t dur+ ! taxable
 ye> or any prec$+ taxable ye> is       
#ej1jjj1jjj or m4  7,b7 ,g5]al exception
 ,a corporation %all n be treat$ z      
describ$ 9 ?is p>agraph if--  7i7 su*   
corporation 0 treat$ z a corporation    
describ$ 9 ?is p>agraph 9 a prec$+      
taxable ye>1  7ii7 su* corporation--    

7,i7 is n regul>ly trad$ on an e/abli%$ 
securities m>ket1 &  7,,ii7 has1 & is   
reasonably expect$ to cont9ue to h1     
aggregate gross assets 7includ+ assets  
"u managem5t = inve/ors1 :e!r held      
directly or indirectly7 ( less ?an      
#ej1jjj1jjj1 &  7iii7 ! ,secret>y grants
 a waiv] to su* corporation "u ?is      
subp>agraph4  7#c7 ,managem5t & control 
7,a7 ,9 g5]al ,! ,secret>y %all         
prescribe regulations = purposes (      
det]m9+ cases 9 :i* ! managem5t &       
control ( a corporation is to be treat$ 
z occurr+ prim>ily )9 ! ,unit$ ,/ates4  
7,b7 ,executive (fic]s & s5ior managem5t
 ,su* regulations %all provide t-- 7i7 !
 managem5t & control ( a corporation    
%all be treat$ z occurr+ prim>ily )9 !  
,unit$ ,/ates if sub/antially all ( !   
executive (fic]s & s5ior managem5t ( !  
corporation :o ex]cise day-to-day       
responsibility = mak+ decisions involv+ 
/rategic1 f9ancial1 & op]ational        
policies ( ! corporation are locat$     
prim>ily )9 ! ,unit$ ,/ates1 &  7ii7    

individuals :o are n executive (fic]s & 
s5ior managem5t ( ! corporation 7includ+
 individuals :o are (fic]s or employees 
( o!r corporations 9 ! same *a9 (       
corporations z ! corporation7 %all be   
treat$ z executive (fic]s & s5ior       
managem5t if su* individuals ex]cise !  
day-to-day responsibilities ( !         
corporation describ$ 9 clause 7i74  7,c7
 ,corporations prim>ily hold+ inve/m5t  
assets ,su* regulations %all also       
provide t ! managem5t & control ( a     
corporation %all be treat$ z occurr+    
prim>ily )9 ! ,unit$ ,/ates if--  7i7 ! 
assets ( su* corporation 7directly or   
indirectly7 consi/ prim>ily ( assets be+
 manag$ on behalf ( inve/ors1 &  7ii7   
decisions ab\t h[ to inve/ ! assets are 
made 9 ! ,unit$ ,/ates4  4  7b7         
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ on or aft] ! date :i* is #b ye>s 
aft] ! date ( ! enactm5t ( ?is ,act1    
:e!r or n regulations are issu$ "u      
section #ggja7p77#c7 ( ! ,int]nal       

,rev5ue ,code ( #aihf1 z add$ by ?is    
section4