
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC78]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
          PART II--ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME
 
Sec. 78. Dividends received from certain foreign corporations by 
        domestic corporations choosing foreign tax credit
        
    If a domestic corporation chooses to have the benefits of subpart A 
of part III of subchapter N (relating to foreign tax credit) for any 
taxable year, an amount equal to the taxes deemed to be paid by such 
corporation under section 902(a) (relating to credit for corporate 
stockholder in foreign corporation) or under section 960(a)(1) (relating 
to taxes paid by foreign corporation) for such taxable year shall be 
treated for purposes of this title (other than section 245) as a 
dividend received by such domestic corporation from the foreign 
corporation.

(Added Pub. L. 87-834, Sec. 9(b), Oct. 16, 1962, 76 Stat. 1001; amended 
Pub. L. 94-455, title X, Sec. 1033(b)(1), Oct. 4, 1976, 90 Stat. 1628.)


                               Amendments

    1976--Pub. L. 94-455 substituted ``section 902(a)'' for ``section 
902(a)(1)'' and ``section 960(a)(1)'' for ``section 960(a)(1)(C)''.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-455 applicable on different dates depending 
on the date the distributions were received, see section 1033(c) of Pub. 
L. 94-455, set out as a note under section 902 of this title.


                             Effective Date

    Section applicable in respect of any distribution received by a 
domestic corporation after Dec. 31, 1964, and in respect of any 
distribution received by a domestic corporation before Jan. 1, 1965, in 
a taxable year of such corporation beginning after Dec. 31, 1962, but 
only to the extent that such distribution is made out of the accumulated 
profits of a foreign corporation for a taxable year (of such foreign 
corporation) beginning after Dec. 31, 1962, see section 9(e) of Pub. L. 
87-834, set out as an Effective Date of 1962 Amendment note under 
section 902 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 814, 901, 902, 904, 906, 
908, 1291 of this title.
