89 STAT. 54
PUBLIC LAW 94-12—MAR. 29, 1975
TITLE VI—TAXATION OF FOREIGN OIL AND GAS AND OTHER FOREIGN INCOME
26 USC 907.
SEC. 691. LIMITATIONS ON FOREIGN TAX CREDIT FOR TAXES PAID IN CONNECTION WITH FOREIGN OIL AND GAS INCOME. (a) I N GENPIRAL.—Subpart A of part III of subchapter N of chapter 1 (relating to foreign tax credit) is amended by adding at the end thereof the following new section: "SEC. 907. SPECIAL RULES IN CASE OF FOREIGN OIL AND GAS INCOME. "(a)
26 USC 901.
26 USC 11. 26 USC 904.
REDUCTION I N A M O U N T ALLOWED AS FOREIGN T A X U N D E R S E C -
TiON 901.—In applying section 901, the amount of any income, w a r profits, and excess profits taxes paid or accrued (or deemed to have been paid) during the taxable year with respect to foreign oil and gas extraction income which would (but for this subsection) be taken into account for purposes of section 901 shall be reduced by the amount (if any) by which the amount of such taxes exceeds the product of— " (1) the amount of the foreign oil and gas extraction income for the taxable year, multiplied by " (2) the percentage which is— " (A) in taxable years ending i n 1975, 110 percent of, " (B) in taxable years ending in 1976, 105 percent of, and " (C) in taxable years ending after 1976, 2 percentage points above, the sum of the normal tax rate and the surtax rate for the taxable year specified in section 11. "(b)
APPLICATION OF SECTION 904 L I M I T A T I O N, — The
provisions
of section 904 shall be applied separately with respect to— " (1) foreign oil related income, and " (2) other taxable income. W i t h respect to foreign oil related income, the overall limitation provided by section 9 0 4 (a)(2) shall apply and the per-country limitation provided by section 904(a)(1) shall not apply. " (c) FOREIGN INCOME DEFINITIONS AND SPECIAL RULES. — For p u r -
poses of this section— " (1) FOREIGN OIL AND GAS EXTRACTION INCOME.—The term 'for-
eign oil and gas extraction income' means the taxable income derived from sources without the United States and its possessions from— " (A) the extraction (by the tax p a y e r or any other person) of minerals from oil or gas wells, or " (B) the sale or exchange of assets used by the taxpayer in the trade or business described in subparagraph (A). "(2)
FOREIGN OIL RELATED INCOME.—The term
'foreign
oil
related income' means the taxable income derived from sources outside the United States and its possessions from— " (A) the extraction (by the taxpayer or any other person) of minerals from oil or gas wells, " (B) the processing of such minerals into their primary products, " (C) the transportation of such minerals or p r i m a r y products, " (D) the distribution or sale of such minerals or p r i m a r y products, or " (E) the sale or exchange of assets used by the taxpayer in the trade or business described in subparagraph (A), (B),(C),or(D).
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