26 U.S.C. § 1561
§ 1561. Limitation on accumulated earnings credit in the case of certain controlled corporations
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Added in 1964 by the Public Law 88-272. Last changed December 22, 2017 by the Tax Cuts and Jobs Act (2017).
Every change, newest first (15)
- December 22, 2017Tax Cuts and Jobs Act (2017)
- December 19, 2014Tax Increase Prevention Act of 2014
- August 20, 1996Small Business Job Protection Act of 1996
- November 10, 1988Technical and Miscellaneous Revenue Act of 1988
- October 22, 1986Tax Reform Act of 1986
- October 17, 1986Public Law 99-499
- July 18, 1984Deficit Reduction Act of 1984
- September 3, 1982Tax Equity and Fiscal Responsibility Act of 1982
- August 13, 1981Economic Recovery Tax Act of 1981
- November 6, 1978Revenue Act of 1978
- October 4, 1976Tax Reform Act of 1976
- December 23, 1975Public Law 94-164
- March 29, 1975Public Law 94-12
- December 30, 1969Tax Reform Act of 1969
- February 26, 1964Public Law 88-272 · added this section
The law as written
Current through Public Law 119-102. Amendment notes omitted.
The component members of a controlled group of corporations on a December 31 shall, for their taxable years which include such December 31, be limited for purposes of this subtitle to one $250,000 ($150,000 if any component member is a corporation described in section 535(c)(2)(B)) amount for purposes of computing the accumulated earnings credit under section 535(c)(2) and (3). Such amount shall be divided equally among the component members of such group on such December 31 unless the Secretary prescribes regulations permitting an unequal allocation of such amount.
If a corporation has a short taxable year which does not include a December 31 and is a component member of a controlled group of corporations with respect to such taxable year, then for purposes of this subtitle, the amount to be used in computing the accumulated earnings credit under section 535(c)(2) and (3) of such corporation for such taxable year shall be the amount specified in subsection (a) with respect to such group, divided by the number of corporations which are component members of such group on the last day of such taxable year. For purposes of the preceding sentence, section 1563(b) shall be applied as if such last day were substituted for December 31.