90 STAT. 1644
PUBLIC LAW 94-455—OCT. 4, 1976
(1^) TRADK OK BusiNKSS."—If T)!) percent oi- more of the <rros.s income of such domestic corporation for such period or such part tlieieof was deiived from the active conduct of a trade or business within a possession of the United States.
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CltEDIT XOT ALLOWKU AGAIXST CERTAIN TAXKS.
provided by paragraph (1) shall not be allowed against the tax imposed by— ' ' (A) section 56 (relating to minimum tax), "(J^) section 531 (relating to the tax on accumulated earnings), " (C) section 541 (relating to personal holding companv tax), " (D) section 1.3-33 (relating to w a r loss recoveries), or "(p]) section 1351 (relating to recoveries of foreign expropriation losses).
Ante, p. 1549. 26 USC 531.
'"(b) AAFOUXTS RECEIVED IX I J X I T E D STATES. — I n determining tax -
able income for purposes of subsection (a), there shall not be taken into account as income from sources without the United States any gross income which was received by such dcmiestic corporation within the United States, Avhether derived from sources within or without the United States!
TREAT.AIEXT OF CERTAIN FOKEKJX T A X E S. — For purposes of t h i s
title, any tax of a foreign country or a possession of the United States which is paid or acci'ued with respect to taxable income which is taken into account in computing the credit under subsection (a) shall not be treated as income, Avar profits, oi- excess profits taxes paid oi- accrued to a foreign country or possession of the United States, and no deduction shall be allowed under this title with respect to any amounts so paid or accrued. " (d) DEFINITIONS. — For purposes of this section— " (1) PossEssiox.—The term 'possession of the United Slates' includes the Commouwealth of Puerto Eico, but does not include the Virgin Islands of the Ignited States. "(2)
..jf'-O'vu i^S '
term 'qualified possession source investment income' means gross income which— " (A) is from sources within a possession of the United States in AA-hich a trade oi- business is actiA^ely conducted, and " (B) the taxpayer establishes to the satisfaction of the Secretary is attributable to the investment in such possession (for use therein) of funds derived from the actiA^e conduct of a trade or business in such possession, or from such investment, less the deductions properly apportioned or allocated thereto. "(e)
Q l ' A L I F I E D POSSESSIOX' SOVRCE INAESTMEXT INCOME.
" (1) PERIOD OF ET.ECTIOX'.—The election provided in subsection (a) shall be made at such time and in such manner as the Secretary may by regulations prescribe. Any such election shall apply to the first taxable year for which such election Avas made and for which the domestic corporation satisfied the conditions of subparagraph s (A) and (B) of subsection (a)(1) and foreach taxable year thereafter until such election is revoked by the domestic corporation under paragraph (2). I f any such election is revoked by the domestic corporation under paragraph (2), such domestic corporation may make a subsequent election under subsection (a) for any taxable year thereafter for AA-hich such domestic cor-