Title 26 — Internal Revenue CodeRelease 119-73
§246 Rules applying to deductions for dividends received
Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter B— - Computation of Taxable Income › Part PART VIII— - SPECIAL DEDUCTIONS FOR CORPORATIONS › § 246
Summary
Limits when a corporation can take a deduction for dividends it gets. No deduction is allowed for dividends from a corporation that was tax-exempt under the nonprofit rules or the farmers’ cooperative rules in the year the dividend was paid or in the year before. Federal Home Loan Banks (FHLBs) get special treatment: part of an FHLB dividend can be deductible if it matches the share of dividends the FHLB received from the Federal Home Loan Mortgage Corporation (FHLMC). A similar proportional rule applies to dividends paid from an FHLB’s accumulated earnings, but only for certain FHLMC dividends after December 31, 1984. For these rules, FHLB means a Federal Home Loan Bank, FHLMC means the Federal Home Loan Mortgage Corporation, an FHLB’s tax year is usually treated as the calendar year, and an FHLB’s earnings are treated as the FHLMC dividends plus the bank’s reported earnings. There are also limits on how much total dividend deduction a company can take. The total deduction for dividends received under the dividend rules can’t exceed a percentage of taxable income calculated without counting some other deductions. That limit does not apply if the company has a net operating loss. The limit is applied first to dividends from companies you own 20% of, at 65%, and then to other dividends at 50%, reducing taxable income by the 20%-owned dividends first. A deduction is denied if the stock was held 45 days or less in a 91-day window before the dividend (long-preference stock uses 90 days and 181 days). Short sales, options, or similar positions shorten the holding time. For the special rule about 10%-owned foreign companies, those holding rules use 365 and 731 days and only count if the company was a 10%-owned foreign company and a U.S. shareholder for the whole time. Finally, dividends from a DISC or former DISC are not deductible to the extent they come from the DISC’s accumulated or previously taxed income or are treated as a deemed distribution.
Full Legal Text
Title 26, §246
Internal Revenue Code — Source: USLM XML via OLRC
(a)(1)The deductions allowed by section 243 11 So in original. Probably should be followed by a comma. 245, and 245A shall not apply to any dividend from a corporation which, for the taxable year of the corporation in which the distribution is made, or for the next preceding taxable year of the corporation, is a corporation exempt from tax under section 501 (relating to certain charitable, etc., organizations) or section 521 (relating to farmers’ cooperative associations).
(2)(A)In the case of any dividend paid by any FHLB out of earnings and profits of the FHLB for the taxable year in which such dividend was paid, paragraph (1) shall not apply to that portion of such dividend which bears the same ratio to the total dividend as—
(i)the dividends received by the FHLB from the FHLMC during such taxable year, bears to
(ii)the total earnings and profits of the FHLB for such taxable year.
(B)In the case of any dividend which is paid out of any accumulated earnings and profits of any FHLB, paragraph (1) shall not apply to that portion of the dividend which bears the same ratio to the total dividend as—
(i)the amount of dividends received by such FHLB from the FHLMC which are out of earnings and profits of the FHLMC—
(I)for taxable years ending after December 31, 1984, and
(II)which were not previously treated as distributed under subparagraph (A) or this subparagraph, bears to
(ii)the total accumulated earnings and profits of the FHLB as of the time such dividend is paid.
(C)To the extent that paragraph (1) does not apply to any dividend by reason of subparagraph (A) or (B) of this paragraph, the requirement contained in section 243(a) that the corporation paying the dividend be subject to taxation under this chapter shall not apply.
(D)For purposes of this paragraph—
(i)The term “FHLB” means any Federal Home Loan Bank.
(ii)The term “FHLMC” means the Federal Home Loan Mortgage Corporation.
(iii)The taxable year of an FHLB shall, except as provided in regulations prescribed by the Secretary, be treated as the calendar year.
(iv)The earnings and profits of any FHLB for any taxable year shall be treated as equal to the sum of—
(I)any dividends received by the FHLB from the FHLMC during such taxable year, and
(II)the total earnings and profits (determined without regard to dividends described in subclause (I)) of the FHLB as reported in its annual financial statement prepared in accordance with section 20 of the Federal Home Loan Bank Act (12 U.S.C. 1440).
(b)(1)Except as provided in paragraph (2), the aggregate amount of the deductions allowed by section 243(a)(1), subsection 22 So in original. (a) and 2 (b) of section 245, and section 250 shall not exceed the percentage determined under paragraph (3) of the taxable income computed without regard to the deductions allowed by section 172, 199A, 243(a)(1), subsection 2 (a) and 2 (b) of section 245, and 250, without regard to any adjustment under section 1059, and without regard to any capital loss carryback to the taxable year under section 1212(a)(1).
(2)Paragraph (1) shall not apply for any taxable year for which there is a net operating loss (as determined under section 172).
(3)The provisions of paragraph (1) shall be applied—
(A)first separately with respect to dividends from 20-percent owned corporations (as defined in section 243(c)(2)) and the percentage determined under this paragraph shall be 65 percent, and
(B)then separately with respect to dividends not from 20-percent owned corporations and the percentage determined under this paragraph shall be 50 percent and the taxable income shall be reduced by the aggregate amount of dividends from 20-percent owned corporations (as so defined).
(c)(1)No deduction shall be allowed under section 243 1 245, or 245A, in respect of any dividend on any share of stock—
(A)which is held by the taxpayer for 45 days or less during the 91-day period beginning on the date which is 45 days before the date on which such share becomes ex-dividend with respect to such dividend, or
(B)to the extent that the taxpayer is under an obligation (whether pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property.
(2)In the case of stock having preference in dividends, if the taxpayer receives dividends with respect to such stock which are attributable to a period or periods aggregating in excess of 366 days, paragraph (1)(A) shall be applied—
(A)by substituting “90 days” for “45 days” each place it appears, and
(B)by substituting “181-day period” for “91-day period”.
(3)For purposes of this subsection, in determining the period for which the taxpayer has held any share of stock—
(A)the day of disposition, but not the day of acquisition, shall be taken into account, and
(B)paragraph (3) of section 1223 shall not apply.
(4)The holding periods determined for purposes of this subsection shall be appropriately reduced (in the manner provided in regulations prescribed by the Secretary) for any period (during such periods) in which—
(A)the taxpayer has an option to sell, is under a contractual obligation to sell, or has made (and not closed) a short sale of, substantially identical stock or securities,
(B)the taxpayer is the grantor of an option to buy substantially identical stock or securities, or
(C)under regulations prescribed by the Secretary, a taxpayer has diminished his risk of loss by holding 1 or more other positions with respect to substantially similar or related property.
(i)paragraph (1)(A) shall be applied—
(I)by substituting “365 days” for “45 days” each place it appears, and
(II)by substituting “731-day period” for “91-day period”, and
(ii)paragraph (2) shall not apply.
(B)For purposes of applying paragraph (1) with respect to section 245A, the taxpayer shall be treated as holding the stock referred to in paragraph (1) for any period only if—
(i)the specified 10-percent owned foreign corporation referred to in section 245A(a) is a specified 10-percent owned foreign corporation at all times during such period, and
(ii)the taxpayer is a United States shareholder with respect to such specified 10-percent owned foreign corporation at all times during such period.
(d)No deduction shall be allowed under section 243 in respect of a dividend from a corporation which is a DISC or former DISC (as defined in section 992(a)) to the extent such dividend is paid out of the corporation’s accumulated DISC income or previously taxed income, or is a deemed distribution pursuant to section 995(b)(1).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2018—Subsec. (e). Pub. L. 115–141 struck out subsec. (e). Prior to amendment, text read as follows: “No deduction shall be allowed under section 243(a) with respect to a dividend received pursuant to a distribution described in section 936(h)(4).” 2017—Subsec. (a)(1). Pub. L. 115–97, § 14101(c)(1), substituted “245, and 245A” for “and 245”. Subsec. (b)(1). Pub. L. 115–97, § 14202(b)(2)(B), which directed amendment of par. (1) by substituting “subsection (a) and (b) of section 245, and 250” for “and subsection (a) and (b) of section 245” the second place appearing, was executed by making the substitution for “and subsection (a) or (b) of section 245”, to reflect the probable intent of Congress. Pub. L. 115–97, § 14202(b)(2)(A), which directed amendment of par. (1) by substituting “, subsection (a) and (b) of section 245, and section 250” for “and subsection (a) and (b) of section 245” the first place appearing, was executed by making the substitution for “and subsection (a) or (b) of section 245”, to reflect the probable intent of Congress. Pub. L. 115–97, § 13305(b)(1), struck out “199,” after “section 172,”. Pub. L. 115–97, § 11011(d)(2), which directed insertion of “199A,” before “243(a)(1)”, was executed by making the insertion before “243(a)(1)” the second place appearing, to reflect the probable intent of Congress. Subsec. (b)(3)(A). Pub. L. 115–97, § 13002(c)(1), substituted “65 percent” for “80 percent”. Subsec. (b)(3)(B). Pub. L. 115–97, § 13002(c)(2), substituted “50 percent” for “70 percent”. Subsec. (c)(1). Pub. L. 115–97, § 14101(b)(1), substituted “245, or 245A” for “or 245” in introductory provisions. Subsec. (c)(5). Pub. L. 115–97, § 14101(b)(2), added par. (5). 2014—Subsec. (a)(1). Pub. L. 113–295, § 221(a)(41)(E)(i), struck out “, 244,” after “section 243”. Subsec. (b)(1). Pub. L. 113–295, § 221(a)(41)(E)(ii), substituted “section 243(a)(1)” for “section 243(a)(1), 244(a),” and “and subsection (a) or (b) of section 245,” for “244(a), subsection (a) or (b) of section 245, and 247,”. Subsec. (c)(1). Pub. L. 113–295, § 221(a)(41)(E)(iii), struck out “, 244,” after “section 243” in introductory provisions. 2005—Subsec. (c)(3)(B). Pub. L. 109–135 substituted “paragraph (3) of section 1223” for “paragraph (4) of section 1223”. 2004—Subsec. (b)(1). Pub. L. 108–357, § 102(d)(4), inserted “199,” after “172,”. Subsec. (c)(1)(A). Pub. L. 108–311, § 406(f)(1), substituted “91-day period” for “90-day period”. Subsec. (c)(2)(B). Pub. L. 108–311, § 406(f)(2), substituted “181-day period” for “180-day period” and “91-day period” for “90-day period”. Subsec. (c)(4). Pub. L. 108–357, § 888(d), inserted “, other than a qualified covered call option to which section 1092(f) applies” before period at end of concluding provisions. 1997—Subsec. (c)(1)(A). Pub. L. 105–34, § 1015(a), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “which is held by the taxpayer for 45 days or less, or”. Subsec. (c)(2). Pub. L. 105–34, § 1015(b)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “In the case of any stock having preference in dividends, the holding period specified in paragraph (1)(A) shall be 90 days in lieu of 45 days if the taxpayer receives dividends with respect to such stock which are attributable to a period or periods aggregating in excess of 366 days.” Subsec. (c)(3). Pub. L. 105–34, § 1015(b)(2), inserted “and” at end of subpar. (A), redesignated subpar. (C) as (B), and struck out former subpar. (B) which read as follows: “there shall not be taken into account any day which is more than 45 days (or 90 days in the case of stock to which paragraph (2) applies) after the date on which such share becomes ex-dividend, and”. 1996—Subsec. (f). Pub. L. 104–188 struck out subsec. (f) which provided a cross reference to section 596 of this title for special rule relating to mutual savings banks, etc., to which section 593 applies. 1988—Subsec. (c)(1)(A). Pub. L. 100–647 substituted “which” for “Which”. 1987—Subsec. (b)(1). Pub. L. 100–203, § 10221(c)(1)(A), substituted “the percentage determined under paragraph (3)” for “80 percent”. Subsec. (b)(3). Pub. L. 100–203, § 10221(c)(1)(B), added par. (3). 1986—Subsec. (a)(2)(B). Pub. L. 99–514, § 1812(d)(1)(A), substituted “In” for “For purposes of subparagraph (A), in” in introductory provisions and substituted cl. (i)(II) for former cl. (i)(II) which read as follows: “which were not taken into account under subparagraph (A), bears to”. Subsec. (a)(2)(C), (D). Pub. L. 99–514, § 1812(d)(1)(B), (C), added subpar. (C), redesignated former subpar. (C) as (D), and added cl. (iv) to subpar. (D). Subsec. (b)(1). Pub. L. 99–514, § 611(a)(3), substituted “80 percent” for “85 percent”. Subsec. (c)(1)(A). Pub. L. 99–514, § 1804(b)(1)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “which is sold or otherwise disposed of in any case in which the taxpayer has held such share for 45 days or less, or”. Subsec. (c)(4). Pub. L. 99–514, § 1804(b)(1)(B), substituted “determined for purposes of this subsection” for “determined under paragraph (3)”. Subsec. (e). Pub. L. 99–514, § 1275(a)(2)(B), struck out “or 934(e)(3)” after “936(h)(4)”. 1984—Subsec. (a). Pub. L. 98–369, § 177(b), amended subsec. (a) generally, designating existing provisions as par. (1) and adding par. (2). Subsec. (b)(1). Pub. L. 98–369, § 801(b)(2)(A), substituted “subsection (a) or (b) of section 245” for “245” in two places. Pub. L. 98–369, § 53(d)(2), substituted “without regard to any adjustment under section 1059, and without regard” for “and without regard”. Subsec. (c)(1)(A). Pub. L. 98–369, § 53(b)(1), substituted “45” for “15”. Subsec. (c)(1)(B). Pub. L. 98–369, § 53(b)(3), substituted “to make related payments with respect to positions in substantially similar or related property” for “to make corresponding payments with respect to substantially identical stock or securities”. Subsec. (c)(2). Pub. L. 98–369, § 53(b)(1), substituted “45” for “15”. Subsec. (c)(3). Pub. L. 98–369, § 53(b)(4), struck out last sentence which directed that the holding periods determined under the preceding provisions of this paragraph be appropriately reduced (in the manner provided in
Regulations
prescribed by the Secretary) for any period (during such holding periods) in which the taxpayer had an option to sell, was under a contractual obligation to sell, or had made (and not closed) a short sale of, substantially identical stock or securities. Subsec. (c)(3)(B). Pub. L. 98–369, § 53(b)(1), substituted “45” for “15”. Subsec. (c)(4). Pub. L. 98–369, § 53(b)(2), added par. (4). 1982—Subsecs. (e), (f). Pub. L. 97–248 added subsec. (e) and redesignated former subsec. (e) as (f). 1976—Subsec. (a). Pub. L. 94–455, § 1051(f)(3), struck out references to dividends from corporations organized under the China Trade Act, 1922, and corporations to which section 931 (relating to income from sources within possessions of the United States) applies. Subsec. (c)(3). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”. 1971—Subsecs. (d), (e). Pub. L. 92–178 added subsec. (d) and redesignated former subsec. (d) as (e). 1969—Subsec. (b)(1). Pub. L. 91–172, § 512(f)(3), substituted “and 247, and without regard to any capital loss carryback to the taxable year under section 1212(a)(1)” for “and 247”. Subsec. (d). Pub. L. 91–172, § 434(b)(1), added subsec. (d). 1964—Subsec. (b). Pub. L. 88–272 substituted “243(a)(1), 244(a)” for “243(a), 244” wherever appearing. 1958—Subsec. (b)(1). Pub. L. 85–866, § 57(c)(2), substituted “243(a)” for “243” wherever appearing. Subsec. (c). Pub. L. 85–866, § 18(a), added subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date
of 2017 AmendmentAmendment by section 11011(d)(2) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11011(e) of Pub. L. 115–97, set out as a note under section 62 of this title. Amendment by section 13002(c) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 13002(f) of Pub. L. 115–97, set out as a note under section 243 of this title. Amendment by section 13305(b)(1) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, except as provided by transition rule, see section 13305(c) of Pub. L. 115–97, set out as a note under section 74 of this title. Amendment by section 14101(b), (c)(1) of Pub. L. 115–97 applicable to distributions made after Dec. 31, 2017, see section 14101(f) of Pub. L. 115–97, set out as an
Effective Date
note under section 245A of this title. Amendment by section 14202(b)(2) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 14202(c) of Pub. L. 115–97, set out as a note under section 172 of this title.
Effective Date
of 2014 AmendmentAmendment by Pub. L. 113–295 not applicable to preferred stock issued before Oct. 1, 1942 (determined in the same manner as under section 247 of this title as in effect before its repeal by Pub. L. 113–295), see section 221(a)(41)(K) of Pub. L. 113–295, set out as a note under section 172 of this title. Except as otherwise provided in section 221(a) of Pub. L. 113–295, amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a
Savings Provision
, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
Effective Date
of 2005 AmendmentAmendment by Pub. L. 109–135 effective as if included in the provisions of the Energy Policy Act of 2005, Pub. L. 109–58, to which it relates, but not applicable with respect to any transaction ordered in compliance with the Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et seq.) before its repeal, see section 402(m) of Pub. L. 109–135, set out as an Effective and Termination Dates of 2005
Amendments
note under section 23 of this title.
Effective Date
of 2004
Amendments
Amendment by section 102(d)(4) of Pub. L. 108–357 applicable to taxable years beginning after Dec. 31, 2004, see section 102(e) of Pub. L. 108–357, set out as a note under section 56 of this title. Pub. L. 108–357, title VIII, § 888(e), Oct. 22, 2004, 118 Stat. 1643, provided that: “The
Amendments
made by this section [amending this section and section 1092 and 1258 of this title] shall apply to positions established on or after the date of the enactment of this Act [Oct. 22, 2004].” Amendment by Pub. L. 108–311 effective as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 406(h) of Pub. L. 108–311, set out as a note under section 55 of this title.
Effective Date
of 1997 Amendment Pub. L. 105–34, title X, § 1015(c), Aug. 5, 1997, 111 Stat. 922, provided that: “(1) In general.—The
Amendments
made by this section [amending this section] shall apply to dividends received or accrued after the 30th day after the date of the enactment of this Act [Aug. 5, 1997]. “(2) Transitional rule.—The
Amendments
made by this section shall not apply to dividends received or accrued during the 2-year period beginning on the date of the enactment of this Act if—“(A) the dividend is paid with respect to stock held by the taxpayer on
June 8, 1997, and all times thereafter until the dividend is received, “(B) such stock is continuously subject to a position described in section 246(c)(4) of the Internal Revenue Code of 1986 on
June 8, 1997, and all times thereafter until the dividend is received, and “(C) such stock and position are clearly identified in the taxpayer’s records within 30 days after the date of the enactment of this Act. Stock shall not be treated as meeting the requirement of subparagraph (B) if the position is sold, closed, or otherwise terminated and reestablished.”
Effective Date
of 1996 AmendmentAmendment by Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1995, see section 1616(c) of Pub. L. 104–188, set out as a note under section 593 of this title.
Effective Date
of 1988 AmendmentAmendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Effective Date
of 1987 AmendmentAmendment by Pub. L. 100–203 applicable to taxable years beginning after Dec. 31, 1987, see section 10221(e)(2) of Pub. L. 100–203, as amended, set out as a note under section 243 of this title.
Effective Date
of 1986 Amendment Pub. L. 99–514, title VI, § 611(b), Oct. 22, 1986, 100 Stat. 2249, provided that: “(1) In general.—The
Amendments
made by subsection (a) [amending this section and section 243, 244, 246A, and 805 of this title] shall apply to dividends received or accrued after
December 31, 1986, in taxable years ending after such date. “(2) Amendment relating to limitation on deductions.—The amendment made by subsection (a) to section 246(b) of the Internal Revenue Code of 1986 shall apply to taxable years beginning after
December 31, 1986.” Amendment by section 1275(a)(2)(B) of Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 1277 of Pub. L. 99–514, set out as a note under section 931 of this title. Pub. L. 99–514, title XVIII, § 1804(b)(1)(C), Oct. 22, 1986, 100 Stat. 2798, provided that: “The
Amendments
made by this paragraph [amending this section] shall apply to stock acquired after March 1, 1986.” Amendment by section 1812(d)(1) of Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.
Effective Date
of 1984 AmendmentAmendment by section 53(d)(2) of Pub. L. 98–369 applicable to distributions after Mar. 1, 1984, in taxable years ending after such date, and amendment of subsec. (c) of this section by section 53(b) of Pub. L. 98–369, applicable to stock acquired after July 18, 1984, in taxable years ending after such date, see section 53(e)(1), (2) of Pub. L. 98–369, set out as an
Effective Date
note under section 1059 of this title. Amendment by section 177(b) of Pub. L. 98–369, effective Jan. 1, 1985, see section 177(d) of Pub. L. 98–369, set out as a note under section 172 of this title. Amendment by section 801(b)(2)(A) of Pub. L. 98–369 applicable to transactions after Dec. 31, 1984, in taxable years ending after such date, see section 805(a)(1) of Pub. L. 98–369, as amended, set out as a note under section 245 of this title.
Effective Date
of 1982 Amendment Pub. L. 97–248, title II, § 213(e), Sept. 3, 1982, 96 Stat. 466, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “(1) In general.—Except as provided in paragraphs (2) and (3), the
Amendments
made by this section [amending this section and section 367, 934, and [former] 936 of this title] shall apply to taxable years beginning after
December 31, 1982. “(2) Certain sales made after july 1, 1982.—Paragraph (6) of [former] section 936(h) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], and so much of section 934 to which such paragraph applies by reason of section 934(e)(4) of such Code, shall apply to taxable years ending after
July 1, 1982. “(3) Certain transfers of intangibles made after august 14, 1982.—Subsection (d) [amending section 367 of this title] shall apply to taxable years ending after
August 14, 1982.”
Effective Date
of 1976 AmendmentFor
Effective Date
of amendment by section 1051(f)(3) of Pub. L. 94–455, see section 1051(i) of Pub. L. 94–455, set out as a note under section 27 of this title. Amendment by section 1906(b)(13)(A) of Pub. L. 94–455 effective Feb. 1, 1977, see section 1906(d)(1) of Pub. L. 94–455, set out as a note under section 6013 of this title.
Effective Date
of 1971 AmendmentAmendment by Pub. L. 92–178 applicable with respect to taxable years ending after Dec. 31, 1971, except that a corporation may not be a DISC for any taxable year beginning before Jan. 1, 1972, see section 507 of Pub. L. 92–178, set out as an
Effective Date
note under section 991 of this title.
Effective Date
of 1969 AmendmentAmendment by section 512(f)(3) of Pub. L. 91–172 applicable with respect to net capital losses sustained in taxable years beginning after Dec. 31, 1969, see section 512(g) of Pub. L. 91–172, set out as a note under section 1212 of this title. Pub. L. 91–172, title IV, § 434(c), Dec. 30, 1969, 83 Stat. 625, provided that: “The
Amendments
made by this section [enacting section 596 of this title and amending this section] shall apply to taxable years beginning after July 11, 1969.”
Effective Date
of 1964 AmendmentAmendment by Pub. L. 88–272 applicable to dividends received in taxable years ending after Dec. 31, 1963, see section 214(c) of Pub. L. 88–272, set out as a note under section 243 of this title.
Effective Date
of 1958 Amendment Pub. L. 85–866, title I, § 18(b), Sept. 2, 1958, 72 Stat. 1615, provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to taxable years ending after
December 31, 1957, but only with respect to shares of stock acquired or short sales made after
December 31, 1957.” Amendment by section 57(c)(2) of Pub. L. 85–866 applicable with respect to taxable years beginning after Sept. 2, 1958, see section 57(d) of Pub. L. 85–866, set out as a note under section 243 of this title.
Savings Provision
For provisions that nothing in amendment by Pub. L. 115–141 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Mar. 23, 2018, for purposes of determining liability for tax for periods ending after Mar. 23, 2018, see section 401(e) of Pub. L. 115–141, set out as a note under section 23 of this title. Plan
Amendments
Not Required Until January 1, 1989For provisions directing that if any
Amendments
made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 246
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73