§ 908. Reduction of credit for participation in or cooperation with an international boycott

Statutory text

In general

If a person, or a member of a controlled group (within the meaning of section 993(a)(3)) which includes such person, participates in or cooperates with an international boycott during the taxable year (within the meaning of section 999(b)), the amount of the credit allowable under section 901 to such person, or under section 960 to United States shareholders of such person, for foreign taxes paid during the taxable year shall be reduced by an amount equal to the product of—

the amount of the credit which, but for this section, would be allowed under section 901 for the taxable year, multiplied by

the international boycott factor (determined under section 999).

Application with sections 275(a)(4) and 78

Section 275(a)(4) and section 78 shall not apply to any amount of taxes denied credit under subsection (a).

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1976
Pub. L. 94–455 title X § 1061(a) · 90 Stat. 1520
Enacted · 26 U.S.C. § 908
Added Pub. L. 94–455, title X, § 1061(a), Oct. 4, 1976, 90 Stat. 1649
Source evidence
Code source credit
Added Pub. L. 94–455, title X, § 1061(a), Oct. 4, 1976, 90 Stat. 1649
Enacted provision · exact public law section
(a) In General.— Subpart A of part III of subchapter N (relating to income from sources without the United States) is amended by adding at the end thereof the following new section: “SEC. 908. REDUCTION OF CREDIT FOR PARTICIPATION IN OR COOPERATION WITH AN INTERNATIONAL BOYCOTT. “(a) In General.— If a person, or a member of a controlled group (within the meaning of section 993(a)(3)) which includes such person, participates in or cooperates with an international boycott during the taxable, year (within the meaning of section 999(b)), the amount Post, p. 1650. of the credit allowable under section 991 to such person, or under section 902 or 960 to United States shareholders of such person, for foreign Ante, p. 1626. taxes paid during the taxable year shall be reduced by an amount equal to the product of— “(1) the amount of the credit which, but for this section, would be allowed under section 901 for the taxable year, multiplied by “(2) the international boycott factor (determined under section 999). “(b) Application With Sections 275(a)(4) and 78.— Section 275 (a)(4) and section 78 shall not apply to any amount of taxes denied credit under subsection (a).”
2017
Pub. L. 115–97 title I § 14301(c)(28) · 131 Stat. 2054
Struck · 26 U.S.C. § 908(a)
Pub. L. 115–97 struck out “902 or” after “or under section” in introductory provisions
Source evidence
Code amendment note
Subsec. (a). Pub. L. 115–97 struck out “902 or” after “or under section” in introductory provisions.
Enacted provision · exact public law section
(28) Section 908(a) is amended by striking “902 or”.
Effective date note
Amendment by Pub. L. 115–97 applicable to taxable years of foreign corporations beginning after Dec. 31, 2017, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see section 14301(d) of Pub. L. 115–97, set out as a note under section 78 of this title.

2 of 2 references resolved to an enrolled provision

Editorial Notes

Amendments

2017—Subsec. (a). Pub. L. 115–97 struck out “902 or” after “or under section” in introductory provisions.

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

Amendment by Pub. L. 115–97 applicable to taxable years of foreign corporations beginning after Dec. 31, 2017, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see section 14301(d) of Pub. L. 115–97, set out as a note under section 78 of this title.

Effective Date

Pub. L. 94–455, title X, § 1066(a), Oct. 4, 1976, 90 Stat. 1654, provided that:

“(1)
General rule.—
The amendments made by this part (other than by section 1065) [enacting this section and section 999 of this title and amending sections 952 and 995 of this title] apply to participation in or cooperation with an international boycott more than 30 days after the date of enactment of this Act [Oct. 4, 1976].
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“(2)
Existing contracts.—
In the case of operations which constitute participation in or cooperation with an international boycott and which are carried out in accordance with the terms of a binding contract entered into before September 2, 1976, the amendments made by this part (other than by section 1065) apply to such participation or cooperation after December 31, 1977.”
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Credits

1976–2017 · 2 acts

1976Added Pub. L. 94–455, title X, § 1061(a), Oct. 4, 1976, 90 Stat. 1649
2017amended Pub. L. 115–97, title I, § 14301(c)(28), Dec. 22, 2017, 131 Stat. 2224.

Show as published

(Added Pub. L. 94–455, title X, § 1061(a), Oct. 4, 1976, 90 Stat. 1649; amended Pub. L. 115–97, title I, § 14301(c)(28), Dec. 22, 2017, 131 Stat. 2224.)