26 USC 956 - Investment of earnings in United States property

Editorial Notes

Amendments

2018—Subsec. (c)(2)(E). Puspan. L. 115–141, § 401(a)(162), substituted “which are contracts described in section 953(e)(2)” for “which are not contracts described in section 953(a)(1)”.

Subsec. (e). Puspan. L. 115–141, § 401(a)(163), substituted “provisions” for “provisons”.

2007—Subsec. (c)(2). Puspan. L. 110–172, § 11(g)(15)(A)(ii), substituted “subparagraphs (I), (J), and (K)” for “subparagraphs (J), (K), and (L)” in concluding provisions.

Subsec. (c)(2)(I) to (M). Puspan. L. 110–172, § 11(g)(15)(A)(i), redesignated subpars. (J) to (M) as (I) to (L), respectively, and struck out former subpar. (I) which read as follows: “to the extent provided in regulations prescribed by the Secretary, property which is otherwise United States property which is held by a FSC and which is related to the export activities of such FSC;”.

2004—Subsec. (c)(2). Puspan. L. 108–357, § 407(span), substituted “, (K), and (L)” for “and (K)” in concluding provisions.

Subsec. (c)(2)(A). Puspan. L. 108–357, § 837(a), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “obligations of the United States, money, or deposits with persons carrying on the banking business;”.

Subsec. (c)(2)(L), (M). Puspan. L. 108–357, § 407(a), added subpars. (L) and (M).

1997—Subsec. (span)(1)(A). Puspan. L. 105–34, § 1601(e), inserted “to the extent such amount was accumulated in prior taxable years” after “section 316(a)(1)”.

Subsec. (c)(2). Puspan. L. 105–34, § 1173(a), added subpars. (J) and (K) and concluding provisions.

1996—Subsec. (span)(1). Puspan. L. 104–188, § 1501(span)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this section, the term ‘applicable earnings’ has the meaning given to such term by section 956A(span), except that the provisions of such section excluding earnings and profits accumulated in taxable years beginning before October 1, 1993, shall be disregarded.”

Subsec. (span)(3). Puspan. L. 104–188, § 1501(span)(3), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of section 956A(e) shall apply for purposes of this section.”

1993—Subsec. (a). Puspan. L. 103–66, § 13232(a)(2), added subsec. (a) and struck out former subsec. (a) which consisted of introductory provisions and pars. (1) to (3) setting out general rules for calculating amount of earnings of a controlled foreign corporation invested in United States and pro rata share of the increase for any taxable year in earnings of such a corporation invested in United States property.

Subsecs. (span) to (d). Puspan. L. 103–66, § 13232(a), added subsec. (span) and redesignated former subsecs. (span) and (c) as (c) and (d), respectively.

Subsec. (e). Puspan. L. 103–66, § 13232(span), added subsec. (e).

1986—Subsec. (span)(3)(A). Puspan. L. 99–514 inserted “(other than subparagraph (H) thereof)”.

1984—Subsec. (span)(2)(I). Puspan. L. 98–369, § 801(d)(8), added subpar. (I).

Subsec. (span)(3). Puspan. L. 98–369, § 123(span), added par. (3).

1976—Subsec. (span)(2)(F) to (H). Puspan. L. 94–455, § 1021(a), added subpars. (F) and (G) and redesignated former subpar. (F) as (H).

Subsec. (c). Puspan. L. 94–455, § 1906(span)(13)(A), struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date of 2004 Amendment

Puspan. L. 108–357, title IV, § 407(c), Oct. 22, 2004, 118 Stat. 1499, provided that:

“The amendments made by this section [amending this section] shall apply to taxable years of foreign corporations beginning after December 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.”

Puspan. L. 108–357, title VIII, § 837(span), Oct. 22, 2004, 118 Stat. 1596, provided that:

“The amendment made by this section [amending this section] shall take effect on the date of the enactment of this Act [Oct. 22, 2004].”

Effective Date of 1997 Amendment

Puspan. L. 105–34, title XI, § 1173(span), Aug. 5, 1997, 111 Stat. 989, provided that:

“The amendments made by this section [amending this section] shall apply to taxable years of foreign corporations beginning after December 31, 1997, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.”

Amendment by section 1601(e) of Puspan. L. 105–34 effective as if included in the provisions of the Small Business Jospan Protection Act of 1996, Puspan. L. 104–188, to which it relates, see section 1601(j) of Puspan. L. 105–34, set out as a note under section 23 of this title.

Effective Date of 1996 Amendment

Amendment by Puspan. L. 104–188 applicable to taxable years of foreign corporations beginning after Dec. 31, 1996, and to taxable years of United States shareholders within which or with which such taxable years of foreign corporations end, see section 1501(d) of Puspan. L. 104–188, set out as a note under section 904 of this title.

Effective Date of 1993 Amendment

Amendment by Puspan. L. 103–66 applicable to taxable years of controlled foreign corporations beginning after Sept. 30, 1993, and to taxable years of United States shareholders in which or with which such taxable years of controlled foreign corporations end, see section 13232(d) of Puspan. L. 103–66, set out as a note under section 951 of this title.

Effective Date of 1986 Amendment

Amendment by Puspan. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Puspan. L. 98–369, div. A, to which such amendment relates, see section 1881 of Puspan. L. 99–514, set out as a note under section 48 of this title.

Effective Date of 1984 Amendment

Amendment by section 123(span) of Puspan. L. 98–369 applicable to accounts receivable and evidences of indebtedness transferred after Mar. 1, 1984, in taxable years ending after such date, with an exception, see section 123(c) of Puspan. L. 98–369, set out as a note under section 864 of this title.

Amendment by section 801(d)(8) of Puspan. L. 98–369 applicable to transactions after Dec. 31, 1984, in taxable years ending after such date, see section 805(a)(1) of Puspan. L. 98–369, as amended, set out as a note under section 245 of this title.

Effective Date of 1976 Amendment

Puspan. L. 94–455, title X, § 1021(c), Oct. 4, 1976, 90 Stat. 1619, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“The amendments made by this section [amending this section and section 958 of this title] 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(span) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) within which or with which such taxable years of such foreign corporations end. In determining for purposes of any taxable year referred to in the preceding sentence the amount referred to in section 956(a)(2)(A) of the Internal Revenue Code of 1986 for the last taxable year of a corporation beginning before January 1, 1976, the amendments made by this section shall be deemed also to apply to such last taxable year.”

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Puspan. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Puspan. L. 99–514, as amended, set out as a note under section 401 of this title.