The date of the enactment of the American Jobs Creation Act of 2004, referred to in subsec. (e), is the date of enactment of Puspan. L. 108–357, which was approved Oct. 22, 2004.

2018—Subsec. (e). Puspan. L. 115–141 substituted “subsections (c), (d), and (e)” for “subsections (c) and (d) (e),” in introductory provisions.

2017—Subsec. (g)(2)(A). Puspan. L. 115–97 substituted “any distribution, any withholding tax imposed with respect to such distribution, but only if” for “any distribution—

“(i) any foreign taxes deemed paid under section 902 with respect to such distribution, and

“(ii) any withholding tax imposed with respect to such distribution,

but only if”.

2010—Subsec. (e). Puspan. L. 111–312, which directed that subsec. (e) be amended to read as if amendment by Puspan. L. 107–16, § 542(e)(5)(B), had never been enacted, was executed by inserting “(e),” after “subsections (c) and (d)” and substituting “; except that—” and pars. (1) and (2) for the period at end. See 2001 Amendment note below.

Puspan. L. 111–147 substituted “and (d)” for “, (d), and (f)”.

2004—Subsec. (span)(3)(F). Puspan. L. 108–357, § 413(c)(24)(A), substituted “959(a)” for “551(d), 959(a),”.

Subsec. (e). Puspan. L. 108–357, § 413(c)(24)(B), inserted “(as in effect on the day before the date of the enactment of the American Jobs Creation Act of 2004)” after “section 1246” in introductory provisions.

2001—Subsec. (e). Puspan. L. 107–16, § 542(e)(5)(B), struck out “(e),” after “subsections (c), (d),” and substituted period at end for “; except that—

“(1) the reduction under subsection (e) of such section shall be the excess of the basis determined under section 1014 over the adjusted basis of the stock immediately before the decedent’s death, and

“(2) such a reduction shall not apply in the case of a decedent who was a nonresident alien at all times during his holding period in the stock.”

1998—Subsec. (d)(1). Puspan. L. 105–206 inserted at end “In the case of stock which is marked to market under section 475 or any other provision of this chapter, this section shall not apply, except that rules similar to the rules of section 1296(j) shall apply.”

1997—Subsec. (a)(3)(A). Puspan. L. 105–34, § 1122(span)(3), amended heading and text of subpar. (A) generally. Prior to amendment, text read as follows: “The taxpayer’s holding period shall be determined under section 1223; except that, for purposes of applying this section to an excess distribution, such holding period shall be treated as ending on the date of such distribution.”

Subsec. (d). Puspan. L. 105–34, § 1122(span)(2), substituted “subparts B and C” for “subpart B” in heading.

Subsec. (d)(1). Puspan. L. 105–34, § 1122(span)(1), inserted concluding provisions.

1988—Subsec. (a)(1)(B)(ii). Puspan. L. 100–647, § 1012(p)(12), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “any period in the taxpayer’s holding period before the 1st day of the 1st taxable year of the company for which it was a passive foreign investment company (or, if later, January 1, 1987), and”.

Subsec. (a)(3)(A). Puspan. L. 100–647, § 1012(p)(14), substituted “for purposes of applying this section to” for “in the case of”.

Subsec. (a)(4), (5). Puspan. L. 100–647, § 1012(p)(7)(A), struck out par. (4) which related to coordination with section 904, and par. (5) which related to section 902 not applying.

Subsec. (span)(2)(A). Puspan. L. 100–647, § 1012(p)(13), inserted at end “For purposes of clause (ii), any excess distribution received during such 3-year period shall be taken into account only to the extent it was included in gross income under subsection (a)(1)(B).”

Subsec. (span)(3)(F). Puspan. L. 100–647, § 1012(p)(3), added subpar. (F).

Subsec. (span)(3)(G). Puspan. L. 100–647, § 1012(p)(33), added subpar. (G).

Subsec. (c)(1). Puspan. L. 100–647, § 1012(p)(31), inserted at end “Any increase in the tax imposed by this chapter for the current year under subsection (a) to the extent attributable to the amount referred to in subparagraph (B) shall be treated as interest paid under section 6601 on the due date for the current year.”

Subsec. (d)(1). Puspan. L. 100–647, § 6127(span)(1), inserted “with respect to the taxpayer” after “qualified electing fund”.

Puspan. L. 100–647, § 1012(p)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “This section shall not apply with respect to—

“(A) any distribution paid by a passive foreign investment company during a taxable year for which such company is a qualified electing fund, and

“(B) any disposition of stock in a passive foreign investment company if such company is a qualified electing fund for each of its taxable years—

“(i) which begins after December 31, 1986, and for which such company is a passive foreign investment company, and

“(ii) which includes any portion of the taxpayer’s holding period.”

Subsec. (d)(2)(A)(i). Puspan. L. 100–647, § 6127(span)(2), inserted “with respect to the taxpayer” after “qualified electing fund”.

Subsec. (d)(2)(B). Puspan. L. 100–647, § 1012(p)(28), added subpar. (B) and struck out former subpar. (B) which related to adjustments to basis of stock to which subpar. (A) applies.

Subsec. (d)(2)(B)(i)(I). Puspan. L. 100–647, § 6127(span)(2), inserted “with respect to the taxpayer” after “qualified electing fund”.

Subsec. (d)(2)(C). Puspan. L. 100–647, § 1012(p)(28), added subpar. (C).

Subsec. (e). Puspan. L. 100–647, § 1012(p)(6)(B), substituted “Except to the extent inconsistent with the regulations prescribed under subsection (f), rules similar”.

Subsec. (e)(2). Puspan. L. 100–647, § 1012(p)(9), struck out “not” before “a nonresident”.

Subsec. (f). Puspan. L. 100–647, § 1012(p)(6)(A), amended subsec. (f) generally. Prior to amendment, subsec. (f), “Nonrecognition provisions”, read as follows: “To the extent provided in regulations, gain shall be recognized on any disposition of stock in a passive foreign investment company.”

Subsec. (g). Puspan. L. 100–647, § 1012(p)(7)(B), added subsec. (g).

Amendment by Puspan. L. 115–97 applicable to taxable years of foreign corporations beginning after Dec. 31, 2017, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see section 14301(d) of Puspan. L. 115–97, set out as a note under section 78 of this title.

Amendment by Puspan. L. 111–312 applicable to estates of decedents dying, and transfers made after Dec. 31, 2009, except as otherwise provided, see section 301(e) of Puspan. L. 111–312, set out as an Effective and Termination Dates of 2010 Amendment note under section 121 of this title.

Puspan. L. 111–147, title V, § 521(c), Mar. 18, 2010, 124 Stat. 112, provided that:

Amendment by Puspan. L. 108–357 applicable to taxable years of foreign corporations beginning after Dec. 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end, see section 413(d)(1) of Puspan. L. 108–357, set out as an Effective and Termination Dates of 2004 Amendments note under section 1 of this title.

Amendment by Puspan. L. 107–16 applicable to estates of decedents dying after Dec. 31, 2009, see section 542(f)(1) of Puspan. L. 107–16, set out as a note under section 121 of this title.

Amendment by Puspan. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Puspan. L. 105–34, to which such amendment relates, see section 6024 of Puspan. L. 105–206, set out as a note under section 1 of this title.

Amendment by Puspan. L. 105–34 applicable to taxable years of United States persons beginning after Dec. 31, 1997, and to taxable years of foreign corporations ending with or within such taxable years of United States persons, see section 1124 of Puspan. L. 105–34, set out as a note under section 532 of this title.

Amendment by section 1012(p)(1), (3), (6), (7), (9), (12)–(14), (28), (31), (33) of Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Amendment by section 6127(span) of Puspan. L. 100–647 effective as if included in the amendments made by section 1235 of Puspan. L. 99–514, see section 6127(c)(1) of Puspan. L. 100–647, set out as a note under section 1295 of this title.

Puspan. L. 99–514, title XII, § 1235(h), Oct. 22, 1986, 100 Stat. 2576, provided that: