26 U.S.C. § 909: Suspension of taxes and credits until related income taken into account

If there is a foreign tax credit splitting event with respect to a foreign income tax paid or accrued by the taxpayer, such tax shall not be taken into account for purposes of this title before the taxable year in which the related income is taken into account under this chapter by the taxpayer. for purposes of section 960, or for purposes of determining earnings and profits under section 964(a), In the case of any foreign income tax not taken into account by reason of subsection (a) or (b), except as otherwise provided by the Secretary, such tax shall be so taken into account in the taxable year referred to in such subsection (other than for purposes of section 986(a)) as a foreign income tax paid or accrued in such taxable year. There is a foreign tax credit splitting event with respect to a foreign income tax if the related income is (or will be) taken into account under this chapter by a covered person. The term “foreign income tax” means any income, war profits, or excess profits tax paid or accrued to any foreign country or to any possession of the United States. The term “related income” means, with respect to any portion of any foreign income tax, the income (or, as appropriate, earnings and profits) to which such portion of foreign income tax relates. any entity in which the payor holds, directly or indirectly, at least a 10 percent ownership interest (determined by vote or value), any person which holds, directly or indirectly, at least a 10 percent ownership interest (determined by vote or value) in the payor, any person which bears a relationship to the payor described in section 267(b) or 707(b), and any other person specified by the Secretary for purposes of this paragraph. appropriate exceptions from the provisions of this section, and for the proper application of this section with respect to hybrid instruments. foreign income taxes (as defined in section 909(d) of the Internal Revenue Code of 1986, as added by this section) paid or accrued in taxable years beginning after December 31, 2010 ; and foreign income taxes (as so defined) paid or accrued by a [former] section 902 corporation (as so defined) in taxable years beginning on or before such date (and not deemed paid under section 902(a) or 960 of such Code on or before such date), but only for purposes of applying sections 902 and 960 with respect to periods after such date.