Amendments
2018—Subsec. (b)(1)(B). Pub. L. 115–141, § 401(d)(1)(D)(v), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “if—
“(i) such dividend is distributed out of the earnings and profits of a taxable year of the distributing corporation which ends after December 31, 1963, for which an election under section 1562 was not in effect, and on each day of which the distributing corporation and the corporation receiving the dividend were members of such affiliated group, or
“(ii) such dividend is paid by a corporation with respect to which an election under section 936 is in effect for the taxable year in which such dividend is paid.”
Subsec. (b)(2)(A). Pub. L. 115–141, § 401(d)(1)(D)(xvii)(II), struck out “, 1504(b)(4),” after “1504(b)(2)”.
2017—Subsec. (a)(1). Pub. L. 115–97, § 13002(a)(1), substituted “50 percent” for “70 percent”.
Subsec. (c). Pub. L. 115–97, § 13002(a)(3), which directed amendment of subsec. (c) heading by substituting “Increased percentage” for “Retention of 80-percent dividend received deduction”, was executed by making the substitution for “Retention of 80-percent dividends received deduction”, to reflect the probable intent of Congress.
Subsec. (c)(1). Pub. L. 115–97, § 13002(a)(2), substituted “65 percent” for “80 percent” and “50 percent” for “70 percent”.
2014—Subsec. (c)(1). Pub. L. 113–295, § 221(a)(41)(C), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “In the case of any dividend received from a 20-percent owned corporation—
“(A) subsection (a)(1) of this section, and
“(B) subsections (a)(3) and (b)(2) of section 244,
shall be applied by substituting ‘80 percent’ for ‘70 percent’.”
Subsec. (d)(4). Pub. L. 113–295, § 221(a)(41)(D), struck out par. (4) which read as follows: “Any dividend received which is described in section 244 (relating to dividends received on preferred stock of a public utility) shall not be treated as a dividend.”
1996—Subsec. (b)(2). Pub. L. 104–188, § 1702(h)(8), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘affiliated group’ has the meaning given such term by section 1504(a), except that for such purposes sections 1504(b)(2), 1504(b)(4), and 1504(c) shall not apply.”
Subsec. (b)(3)(A). Pub. L. 104–188, § 1702(h)(4), inserted “of” after “In the case”.
1990—Subsec. (b). Pub. L. 101–508 amended subsec. (b) generally, substituting present provisions for provisions defining “qualifying dividends”, providing for an election by or for an affiliated group, the effect of an election, and the termination of an election, defining an “affiliated group”, and providing special rules for insurance companies.
1988—Subsec. (b)(6). Pub. L. 100–647 substituted “section 801” for “section 801 or 821”.
1987—Subsec. (a)(1). Pub. L. 100–203, § 10221(a)(1), substituted “70 percent” for “80 percent”.
Subsecs. (c) to (e). Pub. L. 100–203, § 10221(b), added subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and (e), respectively.
1986—Subsec. (a)(1). Pub. L. 99–514, § 611(a)(1), substituted “80 percent” for “85 percent”.
Subsec. (b)(3)(C). Pub. L. 99–514, § 411(b)(2)(C)(iv), inserted “and” at end of cl. (i), redesignated cl. (iii) as (ii), and struck out former cl. (ii) which read as follows: “$400,000 limitation for certain exploration expenditures under section 617(h)(1), and”.
1984—Subsec. (b)(3)(C). Pub. L. 98–369, § 211(b)(3)(A), inserted “and” at end of cl. (ii), struck out cl. (iii) which provided for a $25,000 limitation on small business deduction of life insurance companies under sections 804(a)(3) and 809(d)(10), and redesignated cl. (iv) as (iii).
Subsec. (b)(6). Pub. L. 98–369, § 211(b)(3)(B), substituted “section 801” for “section 802”.
1981—Subsec. (b)(3)(C)(i). Pub. L. 97–34 struck out “$150,000” before “minimum accumulated earnings credit”.
1976—Subsec. (a)(2). Pub. L. 94–455, § 1901(a)(34)(A), inserted “(15 U.S.C. 661 and following)” after “Small Business Investment Act of 1958”.
Subsec. (b)(1). Pub. L. 94–455, § 1051(f)(1), inserted “either” at end of subpar. (A), substituted a comma for a period and inserted “or” at end of subpar. (B), and added subpar. (C).
Subsec. (b)(2), (3), (4). Pub. L. 94–455, title XIX, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (b)(2)(A). Pub. L. 94–455, § 1901(a)(34)(B), struck out “(except that in the case of a taxable year of a member beginning in 1963 and ending in 1964, if the election is effective for the taxable year of the common parent corporation which includes the last day of such taxable year of such member, such election shall be effective for such taxable year of such member, if such member consents to such election with respect to such taxable year)” after “with respect to which the election is made”.
Subsec. (b)(3)(B). Pub. L. 94–455, § 1031(b)(2), substituted “election under section 901(a) (relating to allowance of foreign tax credit)” for “elections under section 901(a) (relating to allowance of foreign tax credit) and section 904(b)(1) (relating to election of overall limitation)”.
Subsec. (b)(3)(C). Pub. L. 94–455, §§ 1901(b)(1)(J)(ii), (21)(A)(i), 1906(b)(3)(C)(ii), struck out cl. (ii) which set a $100,000 limitation for exploration expenditures under section 615 (a) and (b), redesignated former cls. (iii), (iv), and (v) as cls. (ii), (iii), and (iv), respectively, and substituted “certain exploration expenditures under section 617(h)(1)” for “exploration expenditures under sections 615(c)(1) and 617(h)(1)” in cl. (ii) as so redesignated, “804(a)(3)” for “804(a)(4)” in cl. (iii) as so redesignated, and “section 6154(c)(2) and section 6655(e)(2)” for “sections 6154(c)(2) and (3) and sections 6655(e)(2) and (3)” in cl. (iv) as so redesignated.
Subsec. (b)(5). Pub. L. 94–455, § 1051(f)(2), inserted “, 1504(b)(4),” after “sections 1504(b)(2)”.
1975—Subsec. (b)(3)(C)(i). Pub. L. 94–12 substituted “$150,000” for “$100,000”.
1969—Subsec. (b)(3)(C)(iii). Pub. L. 91–172 substituted “sections 615(c)(1) and 617(h)(1)” for “section 615(c)(1)”.
1968—Subsec. (b)(3)(C)(v). Pub. L. 90–364 substituted “surtax exemption, and one amount under section 6154(c)(2) and (3) and sections 6655(e)(2) and (3), for purposes of estimated tax payment requirements under section 6154” for “$100,000 exemption for purposes of estimated tax filing requirements under section 6016”.
1964—Subsec. (a). Pub. L. 88–272 substituted provisions permitting a deduction for 85 percent of dividends received except that it shall be 100 percent when received by a small business investment company operating under the Small Business Investment Act of 1958, and 100 percent in case of qualifying dividends, for provisions permitting an 85 percent deduction for corporations other than one operating under the Small Business Investment Act of 1958, and for other than dividends described in section 244(1) of this title.
Subsec. (b). Pub. L. 88–272 added subsec. (b) and omitted a prior subsec. (b) which allowed a 100 percent deduction of dividends received by a small business investment company operating under the Small Business Investment Act of 1958, other than dividends described in section 244(1) of this title.
Subsec. (c). Pub. L. 88–272 substituted “subsection (a)” for “subsections (a) and (b)” and added par. (4).
Subsec. (d). Pub. L. 88–272 substituted “subsection (a)” for “subsections (a) and (b)”.
1960—Subsec. (c)(3). Pub. L. 86–779, § 10(g), added par. (3).
Subsec. (d). Pub. L. 86–779, § 3(a), added subsec. (d).
1958—Subsec. (a). Pub. L. 85–866, § 57(b)(1), inserted “(other than a small business investment company operating under the Small Business Investment Act of 1958)”.
Subsecs. (b), (c). Pub. L. 85–866, § 57(b)(2), (3), added subsec. (b), redesignated former subsec. (b) as (c), and substituted “subsections (a) and (b)” for “subsection (a)”.