Code Section 904

Code Section Effective Date Name of Act Name of Provision 10yr Revenue Estimate ($millions)
904(d) 8/10/2010 The Air Traffic Control Act Separate Application of Foreign Tax Credit Limitation, etc., to Items Resourced Under Treaties 250

Separate Application of Foreign Tax Credit Limitation, etc., to Items Resourced Under Treaties

Explanation of Provision

The provision applies a separate foreign tax credit limitation for each item (1) that is treated as derived from sources within the United States under U.S. tax law without regard to a treaty obligation, (2) that is treated as arising from sources outside the United States under a treaty obligation of the United States, and (3) for which the taxpayer chooses the benefits of the treaty. The provision does not apply to items of income to which the coordination rule applicable to U.S.-owned foreign corporations or the rule for gains from the sale of certain stock or intangibles (discussed above) apply. The provision gives the Secretary authority to issue guidance as necessary or appropriate to carry out the purposes of the provision, including guidance providing that related items of income may be aggregated for purposes of the provision or grouping together items of income from the same trade or business.

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