90 STAT. 1620
26 USC 954.
\~^,,,^,, ^, 26 USC 954 °°*^^ ^
26 USC 954.
PUBLIC LAW 94-455—OCT. 4, 1976 SEC. 1023. EXCLUSION FROM SUBPART F OF CERTAIN EARNINGS OF INSURANCE COMPANIES. (a) IN GENERAL. — Paragraph (3) of section 954(c) (relating to foreign personal holding company income) is amended by striking out " o r " at the end of subparagraph (A), by striking out the period at the end of subparagraph (B) and inserting in lieu thereof ", or", and by adding at the end thereof the following new subparagraph: " (C) dividends, interest, and gains from the sale or exchange of stock or securities received from a person other than a related person (within the meaning of subsection (d) (3)) derived from investments made by an insurance company of a n amount of its assets equal to one-third of its premiums earned on insurance contracts (other than life insurance and annuity contracts) during the taxable year (as defined in section 8 3 2 (b)(4)) which are not directly or indirectly attributable to the insurance or reinsurance of risks of persons who are related persons (within the meaning of subsection (d)(3)). ". (b) EFFECTIVE D A T E. — The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 1975, and to taxable years of United States shareholders (within the meaning of section 951(b) of the I n t e r n a l Revenue Code of 1954) within which or with which such taxable years of such foreign corporations end. SEC. 1024. SHIPPING PROFITS OF FOREIGN CORPORATIONS. (a)
CERTAIN S H I P P I N G OPERATIONS.—Subsection (b)
of section 954
(relating to foreign base company income) is amended by adding at the end thereof the following new paragraph: .,4-i
26 USC 954 note.
"C^) SPECIAL EXCLUSION FOR FOREIGN BASE COMPANY SHIPPING
INCOME.—Income of a corporation which is foreign base company shipping income under paragraph (4) of subsection (a) (determined without regard to the exclusion under paragraph (2) of this subsection) shall be excluded from foreign base company income if derived by a controlled foreign corporation from, or in connection with, the use (or h i r i n g or leasing for use) of an aircraft or vessel in foreign commerce between two points within the foreign country in which such corporation is created or organized and such aircraft or vessel is registered." (b) EFFECTIVE D A T E. — The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 1975, and to taxable years of United States shareholders (within the meaning of section 951(b) of the I n t e r n a l Revenue Code of 1954) within which or with which such taxable years of such foreign corporations end.
PART III—AMENDMENTS AFFECTING TREATMENT OF FOREIGN TAXES SEC. 1031. REQUIREMENT THAT FOREIGN TAX CREDIT BE DETERMINED ON OVERALL BASIS. 26 USC 904.
OVERALL LIMITATION ON FOREIGN T A X CREDIT.—Section
(relating to limitation on foreign tax credit) is amended to read as follows: "SEC. 904. LIMITATION ON CREDIT. " (a) LIMITATION.—The total amount of the credit taken under section 901(a) shall not exceed the same proportion of the tax against