Page:United States Statutes at Large Volume 90 Part 2.djvu/154

 9 0 STAT. 1622

PUBLIC LAW 94-455—OCT. 4, 1976 " (D) received on obligations acquired as a result of the disposition of a trade or business actively conducted by the taxpayer i n a foreign country or possession of the United States or as a result of the disposition of stock o r obligations of a corporation in which the taxpayer owned a t least 10 percent of the voting stock. For purposes of subparagraph (C), stock owned, directly o r indirectly, by or for a foreign corporation, shall be considered as being proportionately owned by its shareholders.

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" (e) TRANSITIONAL RULES FOR CARRYBACKS AND CARRYOVERS FOR TAXPAYERS ON THE PER-COUNTRY L I M I T A T I O N. — " (1) APPLICATION o r SUBSECTION.—This subsection shall a p p l y

only to a taxpayer who is on the per-country limitation for his last taxable year beginning before January 1, 1976. " (2) CARRYOVERS TO YEARS BEGINNING AFTER DECEMBER

SI,

1975.—In the case of any taxpayer to whom this subsection applies, any carryover from a taxable year beginning before January 1, 1976, may be used in taxaole years beginning after December 31, 1975, to the extent provided in subsection (c), but only to the extent such carryover could have been used in such succeeding taxable years if the per-country limitation continued to apply to all taxable years beginning after December 31, 1975. " (3) CARRYBACKS TO YEARS BEGINNING BEFORE JANUARY

, •

i,

19 7 6.—In the case of any taxpayer to whom this subsection applies, any carryback from a taxable year beginning after December 31, 1975, may be used in taxable years beginning before January 1, 1976, to the extent provided in subsection (c), but only to the extent such carryback could have been used i n such preceding taxable year if the per-country limitation continued to apply to all taxable years beginning after December 31, 1975. " (4) APPLICATION

OF LIMITATIONS.—For

purposes

of

this

subsection— " (A) the overall limitation shall be applied before the percountry limitation, and " (B) where the amount of any carryback or carryover is reduced by the overall limitation, the reduction shall be allocated to the amounts carried from each country or possession in proportion to the taxes paid or accrued to such country or possession in the taxable year from which such amount is being carried. " (f) CROSS REFERENCE.— "For increase of limitation under subsection (a) for taxes paid with respect to amounts received which were included in the gross income of the taxpayer for a prior taxable year as a United States shareholder with respect to a controlled foreign corporation, see section 960(b)." (b) CONFORMING AMENDMENTS. —

26 USC 901, 9^026 USC 243.

(1) Sections 901(a), 901 (b), and 960(b) are amended by striking out "applicable limitation" each place i t appears and inserting in lieu thereof "limitation". (2) Subparagraph (B) of section 2 4 3 (b)(3) is amended to read as follows: " (B) the members of such affiliated group shall be treated as one taxpayer for purposes of making the election under section 901(a) (relating to allowance of foreign tax credit), and".

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