Page:United States Statutes at Large Volume 124.djvu/2424

 124 STAT. 2398 PUBLIC LAW 111–226—AUG. 10, 2010 ‘‘(6) TAXES ALLOWED AS A DEDUCTION, ETC.—Sections 275 and 78 shall not apply to any tax which is not allowable as a credit under subsection (a) by reason of this subsection. ‘‘(7) REGULATIONS.—The Secretary may issue such regula- tions or other guidance as is necessary or appropriate to carry out the purposes of this subsection, including to exempt from the application of this subsection certain covered asset acquisi- tions, and relevant foreign assets with respect to which the basis difference is de minimis.’’. (b) EFFECTIVE DATE.— (1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to covered asset acquisitions (as defined in section 901(m)(2) of the Internal Revenue Code of 1986, as added by this section) after December 31, 2010. (2) TRANSITION RULE.—The amendments made by this sec- tion shall not apply to any covered asset acquisition (as so defined) with respect to which the transferor and the transferee are not related if such acquisition is— (A) made pursuant to a written agreement which was binding on January 1, 2011, and at all times thereafter, (B) described in a ruling request submitted to the Internal Revenue Service on or before July 29, 2010, or (C) described on or before January 1, 2011, in a public announcement or in a filing with the Securities and Exchange Commission. (3) RELATED PERSONS.—For purposes of this subsection, a person shall be treated as related to another person if the relationship between such persons is described in section 267 or 707(b) of the Internal Revenue Code of 1986. SEPARATE APPLICATION OF FOREIGN TAX CREDIT LIMITATION, ETC., TO ITEMS RESOURCED UNDER TREATIES SEC. 213. (a) IN GENERAL.—Subsection (d) of section 904 of the Internal Revenue Code of 1986 is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph: ‘‘(6) SEPARATE APPLICATION TO ITEMS RESOURCED UNDER TREATIES.— ‘‘(A) IN GENERAL.—If— ‘‘(i) without regard to any treaty obligation of the United States, any item of income would be treated as derived from sources within the United States, ‘‘(ii) under a treaty obligation of the United States, such item would be treated as arising from sources outside the United States, and ‘‘(iii) the taxpayer chooses the benefits of such treaty obligation, subsections (a), (b), and (c) of this section and sections 902, 907, and 960 shall be applied separately with respect to each such item. ‘‘(B) COORDINATION WITH OTHER PROVISIONS.—This paragraph shall not apply to any item of income to which subsection (h)(10) or section 865(h) applies. ‘‘(C) REGULATIONS.—The Secretary may issue such regulations or other guidance as is necessary or appropriate 26 USC 904. 26 USC 901 note.