26 U.S.C. § 78: Gross up for deemed paid 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 subsections (a) and (d) of section 960 (determined without regard to the phrase “90 percent of” in subsection (d)(1) thereof) for such taxable year shall be treated for purposes of this title (other than sections 245 and 245A) as a dividend received by such domestic corporation from the foreign corporation. The amendments made by subsection (a) [amending this section and section 960 of this title ] shall apply to taxable years beginning after December 31, 2025 . The amendment made by subsection (b) [amending section 960 of this title ] shall apply to foreign income taxes paid or accrued (or deemed paid under section 960(b)(1) of the Internal Revenue Code of 1986) with respect to any amount excluded from gross income under section 959(a) of such Code by reason of an inclusion in gross income under section 951A(a) of such Code after June 28, 2025 .” in respect of any distribution received by a domestic corporation after December 31, 1964 , and in respect of any distribution received by a domestic corporation before January 1, 1965 , in a taxable year of such corporation beginning after December 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 December 31, 1962 .