26 U.S.C. § 971: Definitions

90 percent or more of the gross income of such corporation for the 3–year period immediately preceding the close of the taxable year (or such part of such period subsequent to the effective date of this subpart during which the corporation was in existence) was derived from sources without the United States, and 75 percent or more of the gross income of such corporation for such period constituted gross income in respect of which such corporation derived export trade income. If 50 percent or more of the gross income of a controlled foreign corporation in the period specified in subsection (a)(1)(A) is gross income in respect of which such corporation derived export trade income in respect of agricultural products grown in the United States, it may qualify as an export trade corporation although it does not meet the requirements of subsection (a)(1)(B). No controlled foreign corporation may qualify as an export trade corporation for any taxable year beginning after October 31, 1971 , unless it qualified as an export trade corporation for any taxable year beginning before such date. If a corporation fails to qualify as an export trade corporation for a period of any 3 consecutive taxable years beginning after such date, it may not qualify as an export trade corporation for any taxable year beginning after such period. the sale to an unrelated person for use, consumption, or disposition outside the United States of export property (as defined in subsection (e)), or from commissions, fees, compensation, or other income from the performance of commercial, industrial, financial, technical, scientific, managerial, engineering, architectural, skilled, or other services in respect to such sales or in respect of the installation or maintenance of such export property; commissions, fees, compensation, or other income from commercial, industrial, financial, technical, scientific, managerial, engineering, architectural, skilled, or other services performed in connection with the use by an unrelated person outside the United States of patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and other like property acquired or developed and owned by the manufacturer, producer, grower, or extractor of export property in respect of which the export trade corporation earns export trade income under paragraph (1); commissions, fees, rentals, or other compensation or income attributable to the use of export property by an unrelated person or attributable to the use of export property in the rendition of technical, scientific, or engineering services to an unrelated person; and interest from export trade assets described in subsection (c)(4). working capital reasonably necessary for the production of export trade income, inventory of export property held for use, consumption, or disposition outside the United States, facilities located outside the United States for the storage, handling, transportation, packaging, or servicing of export property, and evidences of indebtedness executed by persons, other than related persons, in connection with payment for purchases of export property for use, consumption, or disposition outside the United States, or in connection with the payment for services described in subsections (b)(2) and (3). a reasonable allowance for salaries or other compensation for personal services actually rendered for such purpose, rentals or other payments for the use of property actually used for such purpose, a reasonable allowance for the exhaustion, wear and tear, or obsolescence of property actually used for such purpose, and any other ordinary and necessary expenses of the corporation to the extent reasonably allocable to the receipt or production of export trade income. For purposes of this subpart, the term “export property” means any property or any interest in property manufactured, produced, grown, or extracted in the United States. For purposes of this subpart, the term “unrelated person” means a person other than a related person as defined in section 954(d)(3). a corporation which is not an export trading corporation for its most recent taxable year ending before the date of the enactment of the Tax Reform Act of 1984 [ July 18, 1984 ] but was an export trading corporation for any prior taxable year, and such corporation may not qualify as an export trade corporation for any taxable year beginning after December 31, 1984 , by reason of section 971(a)(3) of the Internal Revenue Code of 1954 [now 1986], or (B) such corporation makes an election, before the date 6 months after the date of the enactment of this Act [ Oct. 22, 1986 ], not to be treated as an export trade corporation with respect to taxable years beginning after December 31, 1984 ,