Page:United States Statutes at Large Volume 114 Part 4.djvu/373

 PUBLIC LAW 106-519—NOV. 15, 2000 114 STAT. 2435 of the enactment of this paragraph) to be treated as a FSC; and (v) such corporation makes the election under section 943(e) not later than for its first taxable year beginning after December 31, 2001. The preceding sentence shall cease to apply as of the date that the domestic corporation referred to in clause (ii) ceases to wholly own (directly or indirectly) such controlled foreign corporation. (4) RELATED PERSON. —For purposes of this subsection, the term "related person" has the meaning given to such term by section 943(b)(3). (5) SECTION REFERENCES.— Except as otherwise expressly provided, any reference in this subsection to a section or other provision shall be considered to be a reference to a section or other provision of the Internal Revenue Code of 1986, as amended by this Act. (d) SPECIAL RULES RELATING TO LEASING TRANSACTIONS.— (1) SALES INCOME.—If foreign trade income in connection with the lease or rental of prcrt)erty described in section 927(a)(1)(B) of such Code (as in effect before the amendments made by this Act) is treated as exempt foreign trade income for purposes of section 921(a) of such Code (as so in effect), such property shall be treated as property described in section 941(c)(1)(B) of such Code (as added by this Act) for purposes of appl)ring section 941(c)(2) of such Code (as so added) to any subsequent transaction involving such property to which the amendments made by this Act apply. (2) LIMITATION ON USE OF GROSS RECEIPTS METHOD.—I f any person computed its foreign trade income from any transaction with respect to any property on the basis of a transfer price determined under the method described in section 925(a)(1) of such Code (as in effect before the amendments made by this Act), then the qualifying foreign trade income (as defined in section 941(a) of such Code, as in effect after such amendment) of such person (or any related person) with respect to any other transaction involving such property (and to which the amendments made by this Act apply) shall be zero. Approved November 15, 2000. LEGISLATIVE HISTORY—H.R. 4986: HOUSE REPORTS: No. 106-845 (Comm. on Ways and Means). SENATE REPORTS: No. 106-416 (Comm. on Finance). CONGRESSIONAL RECORD, Vol. 146 (2000): Sept. 12, 13, considered and passed House. Nov. 1, considered and passed Senate, amended. Nov. 14, House concurred in Senate amendment. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000): Nov. 15, Presidential statement.

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