26 U.S.C. § 243 — Dividends received by corporations

Page 977 TITLE 26—INTERNAL REVENUE CODE § 243 250. Foreign-derived intangible income and global intangible low-taxed income. Editorial Notes AMENDMENTS 2017—Pub. L. 115–97, title I, §§ 13821(b)(2), 14101(e)(3), 14202(b)(4), Dec. 22, 2017, 131 Stat. 2181, 2192, 2216, added items 245A, 247, and 250. 2014—Pub. L. 113–295, div. A, title II, § 221(a)(41)(A), Dec. 19, 2014, 128 Stat. 4043, struck out item 244 ‘‘Divi- dends received on certain preferred stock’’ and item 247 ‘‘Dividends paid on certain preferred stock of public utilities’’. 1990—Pub. L. 101–508, title XI, § 11801(b)(4), Nov. 5, 1990, 104 Stat. 1388–522, struck out item 250 ‘‘Certain payments to the National Railroad Passenger Corpora- tion’’. 1984—Pub. L. 98–369, div. A, title I, § 51(b), July 18, 1984, 98 Stat. 564, added item 246A. 1976—Pub. L. 94–455, title XIX, § 1901(b)(1)(AA), Oct. 4, 1976, 90 Stat. 1792, struck out item 242 ‘‘Partially tax- exempt interest’’. 1970—Pub. L. 91–518, title IX, § 901(b), Oct. 30, 1970, 84 Stat. 1342, added item 250. 1969—Pub. L. 91–172, title IV, § 414(b), Dec. 30, 1969, 83 Stat. 613, added item 249. § 241. Allowance of special deductions In addition to the deductions provided in part VI (sec. 161 and following), there shall be al- lowed as deductions in computing taxable in- come the items specified in this part. (Aug. 16, 1954, ch. 736, 68A Stat. 72.) [§ 242. Repealed. Pub. L. 94–455, title XIX, § 1901(a)(33), Oct. 4, 1976, 90 Stat. 1769] Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 72; Feb. 26, 1964, Pub. L. 88–272, title I, § 123(c), 78 Stat. 30, al- lowed to corporations as a deduction the amount re- ceived as interest on obligations of the United States or on obligations of corporations organized under Acts of Congress which are instrumentalities of the United States under certain conditions. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. § 243. Dividends received by corporations (a) General rule In the case of a corporation, there shall be al- lowed as a deduction an amount equal to the fol- lowing percentages of the amount received as dividends from a domestic corporation which is subject to taxation under this chapter: (1) 50 percent, in the case of dividends other than dividends described in paragraph (2) or (3); (2) 100 percent, in the case of dividends re- ceived by a small business investment com- pany operating under the Small Business In- vestment Act of 1958 (15 U.S.C. 661 and fol- lowing); and (3) 100 percent, in the case of qualifying divi- dends (as defined in subsection (b)(1)). (b) Qualifying dividends (1) In general For purposes of this section, the term ‘‘qualifying dividend’’ means any dividend re- ceived by a corporation— (A) if at the close of the day on which such dividend is received, such corporation is a member of the same affiliated group as the corporation distributing such dividend, and (B) if such dividend is distributed out of the earnings and profits of a taxable year of the distributing corporation which ends after December 31, 1963, and on each day of which the distributing corporation and the corporation receiving the dividend were members of such affiliated group. (2) Affiliated group For purposes of this subsection: (A) In general The term ‘‘affiliated group’’ has the mean- ing given such term by section 1504(a), ex- cept that for such purposes sections 1504(b)(2) and 1504(c) shall not apply. (B) Group must be consistent in foreign tax treatment The requirements of paragraph (1)(A) shall not be treated as being met with respect to any dividend received by a corporation if, for any taxable year which includes the day on which such dividend is received— (i) 1 or more members of the affiliated group referred to in paragraph (1)(A) choose to any extent to take the benefits of section 901, and (ii) 1 or more other members of such group claim to any extent a deduction for taxes otherwise creditable under section 901. (3) Special rule for groups which include life insurance companies (A) In general In the case of an affiliated group which in- cludes 1 or more insurance companies under section 801, no dividend by any member of such group shall be treated as a qualifying dividend unless an election under this para- graph is in effect for the taxable year in which the dividend is received. The pre- ceding sentence shall not apply in the case of a dividend described in paragraph (1)(B)(ii). (B) Effect of election If an election under this paragraph is in ef- fect with respect to any affiliated group— (i) part II of subchapter B of chapter 6 (relating to certain controlled corpora- tions) shall be applied with respect to the members of such group without regard to sections 1563(a)(4) and 1563(b)(2)(D), and (ii) for purposes of this subsection, a dis- tribution by any member of such group which is subject to tax under section 801 shall not be treated as a qualifying divi- dend if such distribution is out of earnings and profits for a taxable year for which an election under this paragraph is not effec- tive and for which such distributing cor- poration was not a component member of a controlled group of corporations within the meaning of section 1563 solely by rea- son of section 1563(b)(2)(D). (C) Election An election under this paragraph shall be made by the common parent of the affiliated Page 978 TITLE 26—INTERNAL REVENUE CODE § 243 group and at such time and in such manner as the Secretary shall by regulations pre- scribe. Any such election shall be binding on all members of such group and may be re- voked only with the consent of the Sec- retary. (c) Increased percentage for dividends from 20- percent owned corporations (1) In general In the case of any dividend received from a 20-percent owned corporation, subsection (a)(1) shall be applied by substituting ‘‘65 percent’’ for ‘‘50 percent’’. (2) 20-percent owned corporation For purposes of this section, the term ‘‘20- percent owned corporation’’ means any cor- poration if 20 percent or more of the stock of such corporation (by vote and value) is owned by the taxpayer. For purposes of the preceding sentence, stock described in section 1504(a)(4) shall not be taken into account. (d) Special rules for certain distributions For purposes of subsection (a)— (1) Any amount allowed as a deduction under section 591 (relating to deduction for dividends paid by mutual savings banks, etc.) shall not be treated as a dividend. (2) A dividend received from a regulated in- vestment company shall be subject to the lim- itations prescribed in section 854. (3) Any dividend received from a real estate investment trust which, for the taxable year of the trust in which the dividend is paid, qualifies under part II of subchapter M (sec- tion 856 and following) shall not be treated as a dividend. (e) Certain dividends from foreign corporations For purposes of subsection (a) and for purposes of section 245, any dividend from a foreign cor- poration from earnings and profits accumulated by a domestic corporation during a period with respect to which such domestic corporation was subject to taxation under this chapter (or cor- responding provisions of prior law) shall be treated as a dividend from a domestic corpora- tion which is subject to taxation under this chapter. (Aug. 16, 1954, ch. 736, 68A Stat. 73; Pub. L. 85–866, title I, § 57(b), Sept. 2, 1958, 72 Stat. 1645; Pub. L. 86–779, §§ 3(a), 10(g), Sept. 14, 1960, 74 Stat. 998, 1009; Pub. L. 88–272, title II, § 214(a), Feb. 26, 1964, 78 Stat. 52; Pub. L. 90–364, title I, § 103(e)(2), June 28, 1968, 82 Stat. 264; Pub. L. 91–172, title V, § 504(c)(1), Dec. 30, 1969, 83 Stat. 633; Pub. L. 94–12, title III, § 304(b), Mar. 29, 1975, 89 Stat. 45; Pub. L. 94–455, title X, §§ 1031(b)(2), 1051(f)(1), (2), title XIX, §§ 1901(a)(34), (b)(1)(J)(ii), (21)(A)(i), 1906(b)(3)(C)(ii), (13)(A), Oct. 4, 1976, 90 Stat. 1622, 1646, 1769, 1791, 1797, 1833, 1834; Pub. L. 97–34, title II, § 232(b)(2), Aug. 13, 1981, 95 Stat. 250; Pub. L. 98–369, div. A, title II, § 211(b)(3), July 18, 1984, 98 Stat. 754; Pub. L. 99–514, title IV, § 411(b)(2)(C)(iv), title VI, § 611(a)(1), Oct. 22, 1986, 100 Stat. 2227, 2249; Pub. L. 100–203, title X, § 10221(a)(1), (b), Dec. 22, 1987, 101 Stat. 1330–408; Pub. L. 100–647, title I, § 1010(f)(4), Nov. 10, 1988, 102 Stat. 3454; Pub. L. 101–508, title XI, § 11814(a), Nov. 5, 1990, 104 Stat. 1388–556; Pub. L. 104–188, title I, § 1702(h)(4), (8), Aug. 20, 1996, 110 Stat. 1873, 1874; Pub. L. 113–295, div. A, title II, § 221(a)(41)(C), (D), Dec. 19, 2014, 128 Stat. 4044; Pub. L. 115–97, title I, § 13002(a), Dec. 22, 2017, 131 Stat. 2100; Pub. L. 115–141, div. U, title IV, § 401(d)(1)(D)(v), (xvii)(II), Mar. 23, 2018, 132 Stat. 1207, 1208.) Editorial Notes REFERENCES IN TEXT The Small Business Investment Act of 1958, referred to in subsec. (a)(2), is Pub. L. 85–699, Aug. 21, 1958, 72 Stat. 689, which is classified principally to chapter 14B (§ 661 et seq.) of Title 15, Commerce and Trade. For com- plete classification of this Act to the Code, see Short Title note set out under section 661 of Title 15 and Ta- bles. 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 cor- poration 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 re- spect to which an election under section 936 is in ef- fect 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), sub- stituted ‘‘50 percent’’ for ‘‘70 percent’’. Subsec. (c). Pub. L. 115–97, § 13002(a)(3), which directed amendment of subsec. (c) heading by substituting ‘‘In- creased percentage’’ for ‘‘Retention of 80-percent divi- dend received deduction’’, was executed by making the substitution for ‘‘Retention of 80-percent dividends re- ceived 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 re- ceived 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 per- cent’.’’ Subsec. (d)(4). Pub. L. 113–295, § 221(a)(41)(D), struck out par. (4) which read as follows: ‘‘Any dividend re- ceived which is described in section 244 (relating to dividends received on preferred stock of a public util- ity) shall not be treated as a dividend.’’ 1996—Subsec. (b)(2). Pub. L. 104–188, § 1702(h)(8), reen- acted heading without change and amended text gen- erally. 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), ex- cept 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 provi- sions 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. Page 979 TITLE 26—INTERNAL REVENUE CODE § 243 1988—Subsec. (b)(6). Pub. L. 100–647 substituted ‘‘sec- tion 801’’ for ‘‘section 801 or 821’’. 1987—Subsec. (a)(1). Pub. L. 100–203, § 10221(a)(1), sub- stituted ‘‘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), sub- stituted ‘‘80 percent’’ for ‘‘85 percent’’. Subsec. (b)(3)(C). Pub. L. 99–514, § 411(b)(2)(C)(iv), in- serted ‘‘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 expendi- tures under section 617(h)(1), and’’. 1984—Subsec. (b)(3)(C). Pub. L. 98–369, § 211(b)(3)(A), in- serted ‘‘and’’ at end of cl. (ii), struck out cl. (iii) which provided for a $25,000 limitation on small business de- duction 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), in- serted ‘‘(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 ‘‘ei- ther’’ 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 ‘‘Sec- retary’’. 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 ef- fective 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 elec- tion is made’’. Subsec. (b)(3)(B). Pub. L. 94–455, § 1031(b)(2), sub- stituted ‘‘election under section 901(a) (relating to al- lowance of foreign tax credit)’’ for ‘‘elections under sec- tion 901(a) (relating to allowance of foreign tax credit) and section 904(b)(1) (relating to election of overall lim- itation)’’. 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 redesig- nated, ‘‘804(a)(3)’’ for ‘‘804(a)(4)’’ in cl. (iii) as so redesig- nated, 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 pur- poses of estimated tax payment requirements under section 6154’’ for ‘‘$100,000 exemption for purposes of es- timated tax filing requirements under section 6016’’. 1964—Subsec. (a). Pub. L. 88–272 substituted provi- sions permitting a deduction for 85 percent of dividends received except that it shall be 100 percent when re- ceived by a small business investment company oper- ating under the Small Business Investment Act of 1958, and 100 percent in case of qualifying dividends, for pro- visions permitting an 85 percent deduction for corpora- tions other than one operating under the Small Busi- ness Investment Act of 1958, and for other than divi- dends described in section 244(1) of this title. Subsec. (b). Pub. L. 88–272 added subsec. (b) and omit- ted a prior subsec. (b) which allowed a 100 percent de- duction of dividends received by a small business in- vestment 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 op- erating 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)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2017 AMENDMENT Pub. L. 115–97, title I, § 13002(f), Dec. 22, 2017, 131 Stat. 2101, provided that: ‘‘The amendments made by this section [amending this section and sections 245, 246, 246A, and 861 of this title] shall apply to taxable years beginning after December 31, 2017.’’ EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–295 not applicable to pre- ferred 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 1996 AMENDMENT Amendment by Pub. L. 104–188 effective, except as otherwise expressly provided, as if included in the pro- vision of the Revenue Reconciliation Act of 1990, Pub. L. 101–508, title XI, to which such amendment relates, see section 1702(i) of Pub. L. 104–188, set out as a note under section 38 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 101–508, title XI, § 11814(c), Nov. 5, 1990, 104 Stat. 1388–557, provided that: ‘‘(1) IN GENERAL.—The amendments made by this sec- tion [amending this section and section 1504 of this title] shall apply to taxable years beginning after De- cember 31, 1990. ‘‘(2) TREATMENT OF OLD ELECTIONS.—For purposes of section 243(b)(3) of the Internal Revenue Code of 1986 (as amended by subsection (a)), any reference to an elec- tion under such section shall be treated as including a reference to an election under section 243(b) of such Code (as in effect on the day before the date of the en- actment of this Act [Nov. 5, 1990]).’’ EFFECTIVE DATE OF 1988 AMENDMENT Amendment 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. Page 980 TITLE 26—INTERNAL REVENUE CODE [§ 244 EFFECTIVE DATE OF 1987 AMENDMENT Pub. L. 100–203, title X, § 10221(e), Dec. 22, 1987, 101 Stat. 1330–409, as amended by Pub. L. 100–647, title II, § 2004(i)(1), Nov. 10, 1988, 102 Stat. 3603, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 244 to 246A, 805, 854, and 861 of this title] shall apply to dividends received or accrued after December 31, 1987, in taxable years ending after such date. ‘‘(2) AMENDMENTS RELATING TO LIMITATIONS.—The amendments made by subsection (c) [amending sections 246 and 805 of this title] shall apply to taxable years be- ginning after December 31, 1987.’’ EFFECTIVE DATE OF 1986 AMENDMENT Amendment by section 411(b)(2)(C)(iv) of Pub. L. 99–514 applicable, except as otherwise provided, to costs paid or incurred after Dec. 31, 1986, in taxable years ending after such date, see section 411(c) of Pub. L. 99–514 set out as a note under section 263 of this title. Amendment by section 611(a)(1) of Pub. L. 99–514 ap- plicable to dividends received or accrued after Dec. 31, 1986, in taxable years ending after such date, see sec- tion 611(b) of Pub. L. 99–514, set out as a note under sec- tion 246 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98–369, set out as an Effective Date note under section 801 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–34 applicable to taxable years beginning after Dec. 31, 1981, see section 232(c) of Pub. L. 97–34, set out as a note under section 535 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by section 1031(b)(2) of Pub. L. 94–455, see section 1031(c) of Pub. L. 94–455, set out as a note set out under section 904 of this title. For effective date of amendment by section 1051(f)(1), (2) 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 1901(a)(34), (b)(1), (21) of Pub. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title. For effective date of amendment by section 1906(b)(3)(C)(ii) of Pub. L. 94–455, see section 1906(d) of Pub. L. 94–455, set out as a note under section 6013 of this title. EFFECTIVE DATE OF 1975 AMENDMENT Amendment by Pub. L. 94–12 applicable to taxable years beginning after Dec. 31, 1974, see section 305(c) of Pub. L. 94–12, set out as a note under section 535 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Pub. L. 91–172, title V, § 504(d), Dec. 30, 1969, 83 Stat. 633, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘(1) IN GENERAL.—The amendments made by this sec- tion [amending this section and sections 381, 615, 617, 703, and 1016 of this title] shall apply with respect to ex- ploration expenditures paid or incurred after December 31, 1969. ‘‘(2) PRESUMPTION OF ELECTION UNDER SECTION 617.— For purposes of section 617 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], an election under section 615(e) of such Code, which is effective with re- spect to exploration expenditures paid or incurred be- fore January 1, 1970, shall be treated as an election under section 617(a) of such Code with respect to explo- ration expenditures paid or incurred after December 31, 1969. The preceding sentence shall not apply to any tax- payer who notifies the Secretary of the Treasury or his delegate (at such time and in such manner as the Sec- retary or his delegate prescribes by regulations) that he does not desire his election under section 615(e) to be so treated.’’ EFFECTIVE DATE OF 1968 AMENDMENT Pub. L. 90–364, title I, § 103(f), June 28, 1968, 82 Stat. 264, provided that: ‘‘Except as provided by section 104 [formerly set out as notes under sections 51 and 6154 of this title], the amendments made by this section [en- acting section 6425, amending this section and sections 6020, 6154, 6651, 6655, 7203, and 7701, and repealing sec- tions 6016 and 6074 of this title] shall apply with respect to taxable years beginning after December 31, 1967.’’ EFFECTIVE DATE OF 1964 AMENDMENT Pub. L. 88–272, title II, § 214(c), Feb. 26, 1964, 78 Stat. 55, provided that: ‘‘The amendments made by sub- sections (a) [amending this section] and (b) [amending sections 244, 246, 804, and 809 of this title] shall apply with respect to dividends received in taxable years end- ing after December 31, 1963.’’ EFFECTIVE DATE OF 1960 AMENDMENT Pub. L. 86–779, § 3(c), Sept. 14, 1960, 74 Stat. 998, pro- vided that: ‘‘The amendments made by subsections (a) and (b) [amending this section and section 861 of this title] shall apply to dividends received after December 31, 1959, in taxable years ending after such date.’’ Amendment by section 10(g) of Pub. L. 86–779 applica- ble with respect to taxable years of real estate invest- ment trusts beginning after Dec. 31, 1960, see section 10(k) of Pub. L. 86–779, set out as an Effective Date note under section 856 of this title. EFFECTIVE DATE OF 1958 AMENDMENT Pub. L. 85–866, § 57(d), Sept. 2, 1958, 72 Stat. 1646, pro- vided that: ‘‘The amendments made by this section [en- acting sections 1242 and 1243 and amending this section and sections 165 and 246 of this title] shall apply with respect to taxable years beginning after the date of the enactment of this Act [Sept. 2, 1958].’’ 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 li- ability 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. For provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liabil- ity for tax for periods ending after Nov. 5, 1990, see sec- tion 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title. [§ 244. Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(41)(A), Dec. 19, 2014, 128 Stat. 4043] Section, Aug. 16, 1954, ch. 736, 68A Stat. 73; Pub. L. 88–272, title II, § 214(b)(1), Feb. 26, 1964, 78 Stat. 55; Pub. L. 95–600, title III, § 301(b)(3), Nov. 6, 1978, 92 Stat. 2820; Pub. L. 99–514, title VI, § 611(a)(2), Oct. 22, 1986, 100 Stat. 2249; Pub. L. 100–203, title X, § 10221(a)(2), Dec. 22, 1987, 101 Stat. 1330–408; Pub. L. 100–647, title II, § 2004(i)(2), Nov. 10, 1988, 102 Stat. 3603, allowed to corporations as a deduction a percentage of the amount received as dividends on the preferred stock of a public utility. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal not applicable to preferred stock issued before Oct. 1, 1942 (determined in the same manner as under