426 
‘‘(B) any penalty, addition to tax, or addi-
tional amount attributable to the amount de-
scribed in subparagraph (A). 
‘‘(8) FOREIGN
TAX
CREDIT
ALLOWED.—The 
credit allowed under section 906(a) with respect to 
amounts taken into account in income under para-
graph (1)(A) shall be limited to 80 percent of the 
amount of taxes paid or accrued and determined 
without regard to section 906(b)(1). 
‘‘(9) ELECTION.—Any election under paragraph 
(1)— 
‘‘(A) shall be made at such time and in 
such form and manner as the Secretary may 
provide, and 
‘‘(B) shall apply for the taxable year for 
which made and all subsequent taxable years 
unless revoked with the consent of the Sec-
retary. 
‘‘(10) REGULATIONS.—The Secretary may issue 
such regulations or other guidance as are necessary 
or appropriate to carry out the purposes of this sub-
section, including regulations or other guidance— 
‘‘(A) to provide for the proper determina-
tion of product lines, and
427 
‘‘(B) to prevent the avoidance of the pur-
poses of this subsection through the use of con-
duit transactions or by other means.’’. 
(c) REPORTING REQUIREMENTS.— 
(1) REPORTING BY FOREIGN CORPORATION.— 
Section 6038C(b) is amended to read as follows: 
‘‘(b) REQUIRED INFORMATION.— 
‘‘(1) IN GENERAL.—The information described 
in this subsection is— 
‘‘(A) the information described in section 
6038A(b), and 
‘‘(B) such other information as the Sec-
retary may prescribe by regulations relating to 
any item not directly connected with a trans-
action for which information is required under 
subparagraph (A). 
‘‘(2) CERTAIN PAYMENTS FROM RELATED DO-
MESTIC CORPORATIONS.— 
‘‘(A) IN GENERAL.—In the case of any re-
porting corporation that receives during the 
taxable year any amount to which section 
882(g)(1) applies, the information described in 
this subsection shall include, with respect to 
each member of the international financial re-
428 
porting group from which any such amount is 
received— 
‘‘(i) the name and taxpayer identifica-
tion number of such member, 
‘‘(ii) the aggregate amounts received 
from such member, 
‘‘(iii) the product lines to which such 
amounts relate, the aggregate amounts re-
lating to each such product line, and the 
net income ratio for each such product line 
(determined under section 882(g)(3)(B) 
with respect to the international financial 
reporting group), and 
‘‘(iv) a summary of any changes in fi-
nancial accounting methods that affect the 
computation of any net income ratio de-
scribed in clause (iii). 
‘‘(B) DEFINITIONS AND SPECIAL RULES.— 
Terms used in this paragraph that are also 
used in section 882(g) shall have the same 
meaning as when used in such section and rules 
similar to the rules of paragraphs (5) and (6) 
of such section shall apply for purposes of this 
paragraph.’’.
429 
(2) REPORTING
BY
DOMESTIC
GROUP
MEM-
BERS.— 
(A) IN GENERAL .—Subpart A of part III 
of subchapter A of chapter 61 is amended by 
inserting after section 6038D the following new 
section: 
‘‘SEC. 6038E. INFORMATION WITH RESPECT TO CERTAIN 
PAYMENTS FROM DOMESTIC CORPORATIONS 
TO RELATED FOREIGN CORPORATIONS. 
‘‘(a) IN GENERAL.—In the case of any domestic cor-
poration which pays or incurs any amount to which section 
882(g)(1) applies, such person shall— 
‘‘(1) make a return according to the forms and 
regulations prescribed the Secretary, setting forth 
the information described in subsection (b), and 
‘‘(2) maintain (at the location, in the manner, 
and to the extent prescribed in regulations) such 
records as may be appropriate to determine liability 
for tax pursuant to paragraphs (1) and (7) of sec-
tion 882(g). 
‘‘(b) REQUIRED INFORMATION.—The information de-
scribed in this subsection is— 
‘‘(1) the name and taxpayer identification num-
ber of the common parent of the international finan-
430 
cial reporting group in which such domestic corpora-
tion is a member, and 
‘‘(2) with respect to any person who receives an 
amount described in subsection (a) from such do-
mestic corporation— 
‘‘(A) the name and taxpayer identification 
number of such person, 
‘‘(B) the aggregate amounts received by 
such person, 
‘‘(C) the product lines to which such 
amounts relate, the aggregate amounts relating 
to each such product line, and the net income 
ratio for each such product line (determined 
under section 882(g)(3)(B) with respect to the 
international financial reporting group), and 
‘‘(D) a summary of any changes in finan-
cial accounting methods that affect the com-
putation of any net income ratios described in 
subparagraph (C). 
‘‘(c) DEFINITIONS
AND SPECIAL RULES.—Terms 
used in this paragraph that are also used in section 882(g) 
shall have the same meaning as when used in such section 
and rules similar to the rules of paragraphs (5) and (6) 
of such section shall apply for purposes of this para-
graph.’’.
431 
(B) CLERICAL AMENDMENT.—The table of 
sections for subpart A of part III of subchapter 
A of chapter 61 is amended by inserting after 
the item relating to section 6038D the following 
new item: 
‘‘Sec. 6038E. Information with respect to certain payments from domestic cor-
porations to related foreign corporations.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2018. 
Subtitle E—Provisions Related to 
Possessions of the United States 
SEC. 4401. EXTENSION OF DEDUCTION ALLOWABLE WITH 
RESPECT TO INCOME ATTRIBUTABLE TO DO-
MESTIC PRODUCTION ACTIVITIES IN PUERTO 
RICO. 
(a) IN GENERAL.—Section 199(d)(8)(C), prior to its 
repeal by this Act, is amended— 
(1) by striking ‘‘first 11 taxable years’’ and in-
serting ‘‘first 12 taxable years’’, and 
(2) by striking ‘‘January 1, 2017’’ and insert-
ing ‘‘January 1, 2018’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2016.
432 
SEC. 4402. EXTENSION OF TEMPORARY INCREASE IN LIMIT 
ON COVER OVER OF RUM EXCISE TAXES TO 
PUERTO RICO AND THE VIRGIN ISLANDS. 
(a) IN GENERAL.—Section 7652(f)(1) is amended by 
striking ‘‘January 1, 2017’’ and inserting ‘‘January 1, 
2023’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distilled spirits brought into the 
United States after December 31, 2016. 
SEC. 4403. EXTENSION OF AMERICAN SAMOA ECONOMIC 
DEVELOPMENT CREDIT. 
(a) IN GENERAL.—Section 119(d) of division A of 
the Tax Relief and Health Care Act of 2006 is amended— 
(1) by striking ‘‘January 1, 2017’’ each place 
it appears and inserting ‘‘January 1, 2023’’, 
(2) by striking ‘‘first 11 taxable years’’ in para-
graph (1) and inserting ‘‘first 17 taxable years’’, 
and 
(3) by striking ‘‘first 5 taxable years’’ in para-
graph (2) and inserting ‘‘first 11 taxable years’’. 
(b) TREATMENT OF CERTAIN REFERENCES.—Sec-
tion 119(e) of division A of the Tax Relief and Health 
Care Act of 2006 is amended by adding at the end the 
following: ‘‘References in this subsection to section 199 
of the Internal Revenue Code of 1986 shall be treated as
433 
references to such section as in effect before its repeal by 
the Tax Cuts and Jobs Act.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
Subtitle F—Other International 
Reforms 
SEC. 4501. RESTRICTION ON INSURANCE BUSINESS EXCEP-
TION TO PASSIVE FOREIGN INVESTMENT 
COMPANY RULES. 
(a) IN GENERAL.—Section 1297(b)(2)(B) is amend-
ed to read as follows: 
‘‘(B) derived in the active conduct of an in-
surance business by a qualifying insurance cor-
poration (as defined in subsection (f)),’’. 
(b) QUALIFYING
INSURANCE
CORPORATION
DE-
FINED.—Section 1297 is amended by adding at the end 
the following new subsection: 
‘‘(f) QUALIFYING INSURANCE CORPORATION.—For 
purposes of subsection (b)(2)(B)— 
‘‘(1) IN GENERAL.—The term ‘qualifying insur-
ance corporation’ means, with respect to any taxable 
year, a foreign corporation—
434 
‘‘(A) which would be subject to tax under 
subchapter L if such corporation were a domes-
tic corporation, and 
‘‘(B) the applicable insurance liabilities of 
which constitute more than 25 percent of its 
total assets, determined on the basis of such li-
abilities and assets as reported on the corpora-
tion’s applicable financial statement for the last 
year ending with or within the taxable year. 
‘‘(2) 
ALTERNATIVE
FACTS
AND
CIR-
CUMSTANCES TEST FOR CERTAIN CORPORATIONS.— 
If a corporation fails to qualify as a qualified insur-
ance corporation under paragraph (1) solely because 
the percentage determined under paragraph (1)(B) 
is 25 percent or less, a United States person that 
owns stock in such corporation may elect to treat 
such stock as stock of a qualifying insurance cor-
poration if— 
‘‘(A) the percentage so determined for the 
corporation is at least 10 percent, and 
‘‘(B) under regulations provided by the 
Secretary, based on the applicable facts and cir-
cumstances— 
‘‘(i) the corporation is predominantly 
engaged in an insurance business, and
435 
‘‘(ii) such failure is due solely to run-
off-related or rating-related circumstances 
involving such insurance business. 
‘‘(3) APPLICABLE
INSURANCE
LIABILITIES.— 
For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘applicable 
insurance liabilities’ means, with respect to any 
life or property and casualty insurance busi-
ness— 
‘‘(i) loss and loss adjustment ex-
penses, and 
‘‘(ii) reserves (other than deficiency, 
contingency, or unearned premium re-
serves) for life and health insurance risks 
and life and health insurance claims with 
respect to contracts providing coverage for 
mortality or morbidity risks. 
‘‘(B) LIMITATIONS ON AMOUNT OF LIABIL-
ITIES.—Any amount determined under clause 
(i) or (ii) of subparagraph (A) shall not exceed 
the lesser of such amount— 
‘‘(i) as reported to the applicable in-
surance regulatory body in the applicable 
financial statement described in paragraph
436 
(4)(A) (or, if less, the amount required by 
applicable law or regulation), or 
‘‘(ii) as determined under regulations 
prescribed by the Secretary. 
‘‘(4) OTHER
DEFINITIONS
AND
RULES.—For 
purposes of this subsection— 
‘‘(A) 
APPLICABLE
FINANCIAL
STATE-
MENT.—The term ‘applicable financial state-
ment’ means a statement for financial reporting 
purposes which— 
‘‘(i) is made on the basis of generally 
accepted accounting principles, 
‘‘(ii) is made on the basis of inter-
national financial reporting standards, but 
only if there is no statement that meets 
the requirement of clause (i), or 
‘‘(iii) except as otherwise provided by 
the Secretary in regulations, is the annual 
statement which is required to be filed 
with the applicable insurance regulatory 
body, but only if there is no statement 
which meets the requirements of clause (i) 
or (ii). 
‘‘(B) 
APPLICABLE
INSURANCE
REGU-
LATORY BODY.—The term ‘applicable insurance
437 
regulatory body’ means, with respect to any in-
surance business, the entity established by law 
to license, authorize, or regulate such business 
and to which the statement described in sub-
paragraph (A) is provided.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
TITLE V—EXEMPT 
ORGANIZATIONS 
Subtitle A—Unrelated Business 
Income Tax 
SEC. 5001. CLARIFICATION OF UNRELATED BUSINESS IN-
COME TAX TREATMENT OF ENTITIES TREAT-
ED AS EXEMPT FROM TAXATION UNDER SEC-
TION 501(a). 
(a) IN GENERAL.—Section 511 is amended by adding 
at the end the following new subsection: 
‘‘(d) ORGANIZATIONS AND TRUSTS EXEMPT FROM 
TAXATION
NOT
SOLELY
BY
REASON
OF
SECTION 
501(a).—For purposes of subsections (a)(2) and (b)(2), 
an organization or trust shall not fail to be treated as ex-
empt from taxation under this subtitle by reason of section 
501(a) solely because such organization is also so exempt,