Modification of Deduction for Foreign-Derived Deduction Eligible Income and Net Cfc Tested Income
Section 70321 · Sec. 70321 ·
What this chapter is about
This part cuts two deduction rates in the tax code. One goes from 37.5 percent to 33.34 percent. The other goes from 50 percent to 40 percent. It also strikes one paragraph.
“by striking "37.5 percent" in paragraph (1)(A) and inserting "33.34 percent",”
The section strikes 37.5 percent in paragraph (1)(A) of section 250(a) of the Internal Revenue Code of 1986 and inserts 33.34 percent, strikes 50 percent in paragraph (1)(B) and inserts 40 percent, and strikes paragraph (3).
What the document actually says
“by striking "37.5 percent" in paragraph (1)(A) and inserting "33.34 percent",”
That sentence, in plain words
The rate of 37.5 percent is taken out. The rate of 33.34 percent is put in.
What this is about
A second rate goes from 50 percent to 40 percent. A third paragraph is struck out. What the rates apply to is not recorded here.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70321 in the PDF
What the document says
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
The section applies its amendments to taxable years beginning after December 31, 2025.
What the document actually says
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
That sentence, in plain words
The changes start with tax years that begin after December 31, 2025.
What this is about
Earlier tax years are not touched. The old rates still hold for them. The date is fixed in the law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Both things the section does: change the two percentages and strike a paragraph, and fix the effective date.
Nothing in the section is left out. It has two subsections and each is recorded.
The section works by amending section 250(a) of the Internal Revenue Code of 1986, which is not indexed here, so what the two percentages apply to cannot be checked against anything on this site.
