Page:United States Statutes at Large Volume 89.djvu/115

 PUBLIC LAW 94-12—MAR. 29, 1975 "(3)

89 STAT. 55

DIVIDENDS, INTEREST, PARTNERSHIP DISTRIBUTION, ETC.—

The term 'foreign oil and gas extraction income' and the term 'foreign oil related income' include— " (A) dividends and interest from a foreign corporation in respect of which taxes are deemed paid by the taxpayer under section 902, 26 USC 902. " (B) dividends from a domestic corporation which are treated under section 861(a)(2)(A) as income from sources 26 USC 861. without the United States, " (C) amounts with respect to which taxes are deemed paid under section 9 6 0 (a), and 26 USC 960. " (D) the taxpayer's distributive share of the income of partnerships, to the extent such dividends, interest, amounts, or distributive share is attributable to foreign oil and gas extraction income, or to foreign oil related income, as the case may b e; except that interest described in subparagraph (A) and dividends described in subparagraph (B) shall not be taken into account in computing foreign oil and gas extraction income b u t shall be taken into account in computing foreign oil-related income. " (4) CERTAIN LOSSES.—If for any foreign country for any taxable year the taxpayer would have a net operating loss if only items from sources within such country (including deductions properly apportioned or allocated thereto) which relate to the extraction of minerals from oil or gas wells were taken into account, such items— " (A) shall not be taken into account in computing foreign oil and gas extraction income for such year, but " (B) shall be taken into account in computing foreign oil related income for such year. "(d)

DISREGARD OF CERTAIN POSTED PRICES, E T C. — For

purposes

of this chapter, in determining the amount of taxable income in the case of foreign oil and gas extraction income, if the oil or gas is disposed of, or is acquired other than from the government of a foreign country, a t a posted price (or other pricing arrangement) which differs from the fair market value for such oil or gas, such fair market value shall be used in lieu of such posted price (or other pricing arrangement). " (e) TRANSITIONAL RULES. — " (1) TAXABLE YEARS ENDING AFTER DECEMBER S I,

1974.—In

applying subsections (d) and (e) of section 904 for purposes of 26 USC 904. determining the amount which may be carried over from a taxable year ending before January 1, 1975, to any taxable year ending after December 31, 1974— " (A) subsection (a) of this section shall be deemed to have been in effect for such prior taxable year and for all taxable years thereafter, and " (B) the carryover from such prior year shall be divided (effective as of the first d a y of the first taxable year ending after December 31, 1974) into— " (i) a foreign oil related carryover, and " ( i i) another carryover, on the basis of the proportionate share of the foreign oil related income, or the other taxable income, as the case may be, of the total taxable income taken into account in computing the amount of such carryover. " (2) TAXABLE YEARS ENDING AFTER DECEMBER 31,

1975.—In

applying subsections (d) and (e) of section 904 for purposes of determining the amount which may be carried over from a tax-

�