PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1649
regard to this sentence) shall be reduced by the percentage reduction specified in the following t a b l e: "For a taxable year The percentage rebeginning in— duction shall be— 1976 1977
331/3 66%."
(c) EEPEAL.—Subpart E of part III of subchapter X of chapter J 26 USC 941, (relating to China Trade Act corporations) is hereby repealed. ^^2, 943. (d) T E C H X I C A I. AXD COXFORMIKG AMENDMENTS. —
(1) Section 116(b) is amended by striking out paragraph (1) and redesignating paragraph s (2) and (3) as paragraph s (1) and (2), respectively. (2) Section 1504(b) is amended by striking out paragraph (5). (3) Section 6072 is amended by striking out subsection (e). (4) Section 6091(b)(2)(B) (ii) is amended by striking out the comma after "trade corporations)" and inserting in lieu thereof "or'" and by striking out " o r section 941 (relating to the special deduction for China Trade Act corporations),". (5) The table of subparts for part III of subchapter N of chapter 1 is amended by striking out the item relating to subpart E. (e) EFFECTIVE D A T E S. — The amendments m a d e by subsections (a)
26 USC 116. 26 USC 1504. 26 USC 6072. 26 USC 6091.
26 USC 941
and (b) shall apply with respect to taxable years beginning after "°*December 31, 1975. The amendments n)ade by subsections (c) and (d) shall apply with respect to taxable years beginning after December 31, 1977. " ^ P A R T VI — D E N I A L OF CERTAIN T A X B E N E F I T S FOR COOPERATION WITH OR PARTICIPATION I N INTERNATIONAL BOYCOTTS A N D I N C O N N E C T I O N WITH THE P A Y M E N T OF CERTAIN B R I B E S
.•, .
SEC. 1061. DENIAL OF FOREIGN TAX CREDIT. (a) IN GENERAL.—Subpart A of part III of subchapter N (relating to income from sources without the United States) is amended by adding at the end thereof the following new section: "SEC. 908. REDUCTION OF CREDIT FOR PARTICIPATION IN OR CO- 26 USC 908. OPERATION WITH AN INTERNATIONAL BOYCOTT. " (a) IN GENERAL.—If a person, or a member of a controlled group (within the meaning of section 993(a)(3)) which includes such person, participates in or cooperates with an international boycott during the taxable year (within the meaning of section 9 9 9 (b)), the amount ^^^'^^ P- 1^50. of the credit allowable under section 901 to such person, or under section 902 or 960 to United States shareholders of such person, for for- ^"'e, p. 1626. eign taxes paid during the taxable year shall be reduced by an amount equal to the product of— " (1) the amount of the credit which, but for this section, would i be allowed under section 901 for the taxable year, multiplied by " (2) the international boycott factor (determined under section 999). " (b) APPLICATION W I T H SECTIONS 2 7 5 (a)(4) AND 78.—Section 275
(a)(4) and section 78 shall not apply to any amount of taxes denied credit under subsection (a). "
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