Internal Revenue Code:Sec. 908. Reduction of credit for participation in or co-operation with an international boycott

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter N - Tax Based on Income From Sources Within or Without
              the United States
          PART III - INCOME FROM SOURCES WITHOUT THE UNITED STATES
           Subpart A - Foreign Tax Credit
         

Statute

    Sec. 908. Reduction of credit for participation in or co-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 999(b)), the amount
    of the credit allowable under section 901 to such person, or under
    section 902 or 960 to United States shareholders of such person,
    for foreign 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
      be allowed under section 901 for the taxable year, multiplied by
        (2) the international boycott factor (determined under section
      999).
    (b) Application with sections 275(a)(4) and 78
      Section 275(a)(4) and section 78 shall not apply to any amount of
    taxes denied credit under subsection (a).
 

Sources

    (Added Pub. L. 94-455, title X, Sec. 1061(a), Oct. 4, 1976, 90
    Stat. 1649.)
 

Miscellaneous

                               EFFECTIVE DATE
      Section 1066(a) of Pub. L. 94-455 provided that:
      ''(1) General rule. - The amendments made by this part (other
    than by section 1065) (enacting this section and section 999 of
    this title and amending sections 952 and 995 of this title) apply
    to participation in or cooperation with an international boycott
    more than 30 days after the date of enactment of this Act (Oct. 4,
    1976).
      ''(2) Existing contracts. - In the case of operations which
    constitute participation in or cooperation with an international
    boycott and which are carried out in accordance with the terms of a
    binding contract entered into before September 2, 1976, the
    amendments made by this part (other than by section 1065) apply to
    such participation or cooperation after December 31, 1977.''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 999 of this title.