26 U.S.C. 954: Foreign base company income

2020

• Pub. L. 116–260 substituted "January 1, 2026" for "January 1, 2021". (Consolidated Appropriations Act, 2021) Law text · (c)

2019

• Pub. L. 116–94 substituted "January 1, 2021" for "January 1, 2020". (Further Consolidated Appropriations Act, 2020) Law text · (c)

2017

• Pub. L. 115–97, §14211(a), struck out par. (5) which read as follows: "the foreign base company oil related income for the taxable year (determined under subsection (g) and reduced as provided in subsection (b)(5))." Law text · (a)
• Pub. L. 115–97, §14211(b)(2)(A), struck out at end "The preceding sentence shall not apply to foreign base company oil-related income described in subsection (a)(5)." Law text · (b)
• Pub. L. 115–97, §14211(b)(2)(B), which directed substitution of "and the foreign base company services income" for "the foreign base company services income, and the foreign base company oil related income", was executed by making the substitution for "the foreign base company servi… Law text · (b)
• Pub. L. 115–97, §14211(b)(2)(C), struck out par. (6). Text read as follows: "Income of a corporation which is foreign base company oil related income shall not be considered foreign base company income of such corporation under paragraph (2), or (3) of subsection (a)." Law text · (b)
• Pub. L. 115–97, §14211(b)(3), struck out subsec. (g) which related to foreign base company oil related income. Law text · (g)
• Pub. L. 115–97, §13517(b)(5), substituted "shall apply," for "shall be substituted for the prevailing State assumed interest rate,". Law text · (i)

2015

• Pub. L. 114–113, §144(a), substituted "January 1, 2020" for "January 1, 2015". (Consolidated Appropriations Act, 2016) Law text · (c)
• Pub. L. 114–113, §128(b), struck out par. (9). Text read as follows: "This subsection, subsection (c)(2)(C)(ii), and the last sentence of subsection (e)(2) shall apply only to taxable years of a foreign corporation beginning after December 31, 1998, and before January 1, 2015, and t… (Consolidated Appropriations Act, 2016) Law text · (h)

2014

• Pub. L. 113–295, §135(a), substituted "January 1, 2015" for "January 1, 2014". Law text · (c)
• Pub. L. 113–295, §134(b), substituted "January 1, 2015" for "January 1, 2014". Law text · (h)

2013

• Pub. L. 112–240, §323(a), substituted "January 1, 2014" for "January 1, 2012". (American Taxpayer Relief Act of 2012) Law text · (c)
• Pub. L. 112–240, §322(b), substituted "January 1, 2014" for "January 1, 2012". (American Taxpayer Relief Act of 2012) Law text · (h)

2010

• Pub. L. 111–312, §751(a), substituted "January 1, 2012" for "January 1, 2010". (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010) Law text · (c)
• Pub. L. 111–312, §750(a), substituted "January 1, 2012" for "January 1, 2010". (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010) Law text · (h)

2008

• Pub. L. 110–343, §304(a), substituted "January 1, 2010" for "January 1, 2009". (Emergency Economic Stabilization Act of 2008) Law text · (c)
• Pub. L. 110–343, §303(b), substituted "January 1, 2010" for "January 1, 2009". (Emergency Economic Stabilization Act of 2008) Law text · (h)

2007

• Pub. L. 110–172, §11(a)(19), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: "Any item of income, gain, deduction, or loss from a notional principal contract entered into for purposes of hedging any item described in any prec… (Tax Technical Corrections Act of 2007) Law text · (c)
• Pub. L. 110–172, §11(a)(20), redesignated subpar. (I) as (H). (Tax Technical Corrections Act of 2007) Law text · (c), (I)
• Pub. L. 110–172, §11(g)(15)(B), substituted "section 956(c)(2)(I)" for "section 956(c)(2)(J)". (Tax Technical Corrections Act of 2007) Law text · (c)
• Pub. L. 110–172, §4(a), added subpar. (B) and redesignated former subpar. (B) as (C). (Tax Technical Corrections Act of 2007) Law text · (c), (C)

2006

• Pub. L. 109–222, §103(b)(1), added par.(6). (Tax Increase Prevention and Reconciliation Act of 2005) Law text · (c)
• Pub. L. 109–432, in first sentence, substituted "which is neither subpart F income nor income treated as effectively connected with the conduct of a trade or business in the United States" for "which is not subpart F income" and, in last sentence, substituted "The Secretary shall… (Tax Relief and Health Care Act of 2006) Law text · (c)
• Pub. L. 109–222, §103(a)(2), substituted "January 1, 2009" for "January 1, 2007". (Tax Increase Prevention and Reconciliation Act of 2005) Law text · (h)

2005

• Pub. L. 109–135, §412(ll), substituted "paragraph (5)(A)" for "paragraph (4)(A)". (Gulf Opportunity Zone Act of 2005) Law text · (c)
• Pub. L. 109–135, §412(mm), struck out "Net income from notional principal contracts." before "Any item of income". (Gulf Opportunity Zone Act of 2005) Law text · (c)
• Pub. L. 109–135, §403(m), inserted at end "If a controlled foreign corporation is treated as owning a capital or profits interest in a partnership under constructive ownership rules similar to the rules of section 958(b), the controlled foreign corporation shall be treated as own… (Gulf Opportunity Zone Act of 2005) Law text · (c)

2004

• Pub. L. 108–357, §415(a)(1), struck out par. (4) which read as follows: "the foreign base company shipping income for the taxable year (determined under subsection (f) and reduced as provided in subsection (b)(5)), and". (American Jobs Creation Act of 2004) Law text · (a)
• Pub. L. 108–357, §415(c)(2)(A), struck out "the foreign base company shipping income," after "the foreign base company services income,,". (American Jobs Creation Act of 2004) Law text · (b)
• Pub. L. 108–357, §415(c)(2)(B), (C), redesignated par. (8) as (6) and struck out former pars. (6) and (7) which set forth special rules and special exclusion for foreign base company shipping income. (American Jobs Creation Act of 2004) Law text · (b)
• Pub. L. 108–357, §414(a), amended cls. (i) and (ii) generally. Prior to amendment, cls. (i) and (ii) read as follows: (American Jobs Creation Act of 2004) Law text · (c), (ii)
• Pub. L. 108–357, §413(b)(2), added subpar. (I). (American Jobs Creation Act of 2004) Law text · (c)
• Pub. L. 108–357, §415(b), inserted at end "For purposes of the preceding sentence, rents derived from leasing an aircraft or vessel in foreign commerce shall not fail to be treated as derived in the active conduct of a trade or business if, as determined under regulations prescri… (American Jobs Creation Act of 2004) Law text · (c)
• Pub. L. 108–357, §414(c), inserted "and transactions involving physical settlement" after "(including hedging transactions". (American Jobs Creation Act of 2004) Law text · (c)
• Pub. L. 108–357, §412(a), added par. (4). (American Jobs Creation Act of 2004) Law text · (c)
• Pub. L. 108–357, §414(b), added par. (5). (American Jobs Creation Act of 2004) Law text · (c)
• Pub. L. 108–357, §415(a)(2), struck out subsec. (f) which defined "foreign base company shipping income" for purposes of subsec. (a)(4). (American Jobs Creation Act of 2004) Law text · (f)
• Pub. L. 108–357, §416(a), added subpar. (E). (American Jobs Creation Act of 2004) Law text · (h)

2002

• Pub. L. 107–147, §417(24)(B)(ii), which directed the amendment of Pub. L. 106–170, §532(c)(2)(Q), was executed to that section as if the amendment were retroactive to the effective date of the amendment by Pub. L. 106–170 to reflect the probable intent of Congress. See 1999 Amend… (Job Creation and Worker Assistance Act of 2002) Law text · (c)
• Pub. L. 107–147, §614(a)(2), substituted "January 1, 2007" for "January 1, 2002". (Job Creation and Worker Assistance Act of 2002) Law text · (h)
• Pub. L. 107–147, §614(b)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: "The amount of the reserve of a qualifying insurance company or qualifying insurance company branch for any life insurance or annuity contract shall… (Job Creation and Worker Assistance Act of 2002) Law text · (i)

1999

• Pub. L. 106–170, §532(c)(2)(Q), as amended by Pub. L. 107–147, §417(24)(B)(ii), substituted "section 1221(a)(1)" for "section 1221(1)" in concluding provisions. (Ticket to Work and Work Incentives Improvement Act of 1999) Law text · (c)
• Pub. L. 106–170, §503(a), substituted "taxable years" for "the first taxable year", "January 1, 2002" for "January 1, 2000", and "within which any such" for "within which such". (Ticket to Work and Work Incentives Improvement Act of 1999) Law text · (h)

1998

• Pub. L. 105–277, §1005(e), inserted "other than property which gives rise to income not treated as foreign personal holding company income by reason of subsection (h) or (i) for the taxable year" before comma at end. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999) Law text · (c)
• Pub. L. 105–277, §1005(c), amended heading and text of subpar. (C), generally. Prior to amendment, text read as follows: "Except as provided in subparagraph (A), (E), or (G) of paragraph (1) or by regulations, in the case of a regular dealer in property (within the meaning of par… (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999) Law text · (c)
• Pub. L. 105–277, §1005(d), inserted "or" at end of subpar. (A), substituted a period for ", or" at end of subpar. (B), and inserted concluding provisions. (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999) Law text · (e)
• Pub. L. 105–277, §4003(j), substituted "(h)(9)" for "(h)(8)". (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999) Law text · (e)
• Pub. L. 105–277, §1005(d), struck out subpar. (C) which read as follows: "in the case of taxable years described in subsection (h)(9), the active conduct by a controlled foreign corporation of a banking, financing, insurance, or similar business, but only if the corporation is predominantly engaged… (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999) Law text · (e)
• Pub. L. 105–277, §1005(a), amended heading and text of subsec. (h) generally. Prior to amendment, text consisted of pars. (1) to (9) relating to special rule for income derived in active conduct of banking, financing, or similar businesses, principles for determining applicable income,… (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999) Law text · (h)
• Pub. L. 105–277, §1005(b)(2), added subsec. (i). (Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999) Law text · (i)

1997

• Pub. L. 105–34, §1051(a)(2), in concluding provisions, struck out "In the case of any regular dealer in property, gains and losses from the sale or exchange of any such property or arising out of bona fide hedging transactions reasonably necessary to the conduct of the business o… (Taxpayer Relief Act of 1997) Law text · (c)
• Pub. L. 105–34, §1051(a)(1), added subpars. (F) and (G). (Taxpayer Relief Act of 1997) Law text · (c), (G)
• Pub. L. 105–34, §1051(b), added subpar. (C). (Taxpayer Relief Act of 1997) Law text · (c)
• Pub. L. 105–34, §1175(b), added subpar. (C). (Taxpayer Relief Act of 1997) Law text · (e)
• Pub. L. 105–34, §1175(a), added subsec. (h). (Taxpayer Relief Act of 1997) Law text · (h)

1996

• Pub. L. 104–188 amended directory language of Pub. L. 101–239, §7811(i)(3)(A). See 1989 Amendment note below. (Small Business Job Protection Act of 1996) Law text · (c)

1993

• Pub. L. 103–66, §13235(a)(3)(B), struck out "(1)," after "such corporation under paragraph". · (b)
• Pub. L. 103–66, §13233(a)(1), added subpar. (C). · (c)
• Pub. L. 103–66, §13239(d), added par. (4). · (d)
• Pub. L. 103–66, §13235(b), inserted at end of concluding provisions "Except as provided in paragraph (1), such term shall not include any dividend or interest income which is foreign personal holding company income (as defined in subsection (c))." · (f)
• Pub. L. 103–66, §13235(a)(3)(A), inserted at end "Such term shall not include any foreign personal holding company income (as defined in subsection (c))." · (g)

1989

• Pub. L. 101–239, §7811(i)(3)(C), inserted at end "To the extent provided in regulations, payments made by a partnership with 1 or more corporate partners shall be treated as made by such corporate partners in proportion to their respective interests in the partnership." · (c)
• Pub. L. 101–239, §7811(i)(3)(A), as amended by Pub. L. 104–188, substituted "is a corporation created" for "is created" after "person which (I)". · (c)
• Pub. L. 101–239, §7811(i)(3)(B), substituted "from a corporation which is a related person" for "from a related person". · (c)

1988

• Pub. L. 100–647, §1012(i)(12), struck out "(determined without regard to the exclusion under paragraph (2) of this subsection)" after "paragraph (4) of subsection (a)". · (b), (7)
• Pub. L. 100–647, §1012(i)(18), (20), added cl. (ii), redesignated former cl. (ii) as (iii), added closing provisions, and struck out former closing provisions which read as follows: "This subparagraph shall not apply to gain from the sale or exchange of any property which, in the… · (c)
• Pub. L. 100–647, §1012(i)(25)(B), inserted before period at end "or creates (or increases) a deficit which under section 952(c) may reduce the subpart F income of the payor or another controlled foreign corporation". · (c)
• Pub. L. 100–647, §1012(i)(14)(A), substituted "more than 50 percent" for "50 percent or more" in last two sentences. · (d)
• Pub. L. 100–647, §1018(u)(38), related to execution of amendment by Pub. L. 99–514, §1221(b)(3)(B), see 1986 Amendment note below. · (e)

1986

• Pub. L. 99–514, §1221(c)(3)(A)(ii), substituted "determined under subsection (g)" for "determined under subsection (h)". · (a)
• Pub. L. 99–514, §1221(c)(1), struck out par. (2), exclusion for reinvested shipping income, which read as follows: "For purposes of subsection (a), foreign base company income does not include foreign base company shipping income to the extent that the amount of such income does not… · (b)
• Pub. L. 99–514, §1223(a), amended par. (3) generally. Prior to amendment, par. (3), special rule where foreign base company income is less than 10 percent or more than 70 percent of gross income, read as follows: "For purposes of subsection (a)— · (b)
• Pub. L. 99–514, §1221(d), amended par. (4) generally. Prior to amendment, par. (4), exception for foreign corporations not availed of to reduce taxes, read as follows: "For purposes of subsection (a), foreign base company income does not include any item of income received by a cont… · (b)
• Pub. L. 99–514, §1201(c), inserted at end "Except to the extent provided in regulations prescribed by the Secretary, any interest which is paid or accrued by the controlled foreign corporation to any United States shareholder in such corporation (or any controlled foreign corporatio… · (b)
• Pub. L. 99–514, §1221(a)(1), amended subsec. (c) generally, substituting pars. (1) to (3) for former provisions which had provided: in par. (1), a reference to definition of "foreign personal holding company income" contained in section 553; in par. (2), that all rents would be include… · (c)
• Pub. L. 99–514, §1221(e), added subpars. (A) and (B) and concluding provisions and struck out former subpars. (A) to (C) and concluding provisions which read as follows: · (d)
• Pub. L. 99–514, §1810(k), in amending subsec. (e) generally, designated existing provisions as par. (1), added par. heading, and substituted subpar. (A) and (B) designations for prior par. (1) and (2) designations, struck out provisions relating to nonapplicability of preceding sentenc… · (e)
• Pub. L. 99–514, §1221(b)(3)(B), and Pub. L. 100–647, §1018(u)(38), struck out par. (3) as enacted by section 1810(k) of Pub. L. 99–514, which read as follows: "For purposes of paragraph (1), in the case of any services performed with respect to any policy of insurance or reinsurance… · (e)
• Pub. L. 99–514, §1221(c)(2), inserted last sentence. · (f)
• Pub. L. 99–514, §1221(c)(3)(A)(i), redesignated subsec. (h) as (g) and struck out former subsec. (g), increase in qualified investments in foreign base company shipping operations, which read as follows: "For purposes of subsection (b)(2), the increase for any taxable year in qua… · (g), (h)

1984

• Pub. L. 98–369, §137(a), inserted provision that for purposes of par. (2) services performed with respect to any insurance or reinsurance policy be treated as performed in the country of risk. · (e)
• Pub. L. 98–369, §712(f), substituted "paragraphs (2) and (3) of section 907(c)" for "section 907(c)(2)". · (h)

1982

• Pub. L. 97–248, §212(a), (e), added par. (5). · (a)
• Pub. L. 97–248, §212(d), inserted at end "The preceding sentence shall not apply to foreign base company oil related income described in subsection (a)(5)." · (b)
• Pub. L. 97–248, §212(b)(1), substituted ", the foreign base company shipping income, and the foreign base company oil related income" for "and the foreign base company shipping income". · (b)
• Pub. L. 97–248, §212(b)(2), added par. (8). · (b)
• Pub. L. 97–248, §212(c), added subsec. (h). · (h)

1976

• Pub. L. 94–455, §1906(b)(13)(A), struck out "or his delegate" after "Secretary". · (b), (5)
• Pub. L. 94–455, §1024(a), added par. (7). · (b)
• Pub. L. 94–455, §1023(a), added subpar. (C). · (c)

1975

• Pub. L. 94–12, §602(d)(1)(A), added par. (4). · (a)
• Pub. L. 94–12, §602(c)(1), struck out subsec. (b)(1) which related to the exclusion of certain dividends, interest, and gains from qualified investments in less developed countries. · (b)
• Pub. L. 94–12, §602(d)(1)(B), substituted "foreign base company shipping income to the extent that the amount of such income does not exceed the increase for the taxable year in qualified investments in foreign base company shipping operations of the controlled foreign corporation (… · (b)
• Pub. L. 94–12, §602(d)(1)(C), (D), (e), substituted "10 percent" for "30 percent" in heading, substituted "paragraphs (2) and (5)" for "paragraphs (1) and (5)" and "10 percent" for "30 percent" in subpar. (A), and substituted "paragraphs (2) and (5)" for "paragraphs (1) and (5)" and… · (b)
• Pub. L. 94–12, §602(d)(1)(E), substituted "the foreign base company services income, and the foreign base company shipping income" for "and the foreign base company services income". · (b)
• Pub. L. 94–12, §602(d)(1)(F), added par. (6). · (b)
• Pub. L. 94–12, §602(b), provided that for purposes of subsec. (d) personal property does not include agricultural commodities which are not grown in the United States in commercially marketable quantities. · (d)
• Pub. L. 94–12, §602(c)(2), (d)(1)(G), added subsecs. (f) and (g). · (f), (g)

1969

• Pub. L. 91–172 inserted reference to a foreign corporation which is an acquired corporation, and made the effecting of a transaction giving rise to foreign base income through the controlled foreign corporation subject to the Secretary's power to disallow inclusion of any item of su… · (b)