Internal Revenue Code · 26 U.S.C.
§ 638. Continental shelf areas
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 638
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- December 30, 1969 by Pub. L. 91–172
- Length
- 2 subsections · 231 words · about 1 min to read
- Cross-references
- cites 2; cited by 12 Code sections and 18 other regulations
- Regulations
- 2 issued under this section
For purposes of applying the provisions of this chapter (including sections 861(a)(3) and 862(a)(3) in the case of the performance of personal services) with respect to mines, oil and gas wells, and other natural deposits—
¶(1) the term “United States” when used in a geographical sense includes the seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the United States and over which the United States has exclusive rights, in accordance with international law, with respect to the exploration and exploitation of natural resources; and
¶(2) the terms “foreign country” and “possession of the United States” when used in a geographical sense include the seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the foreign country or such possession and over which the foreign country (or the United States in case of such possession) has exclusive rights, in accordance with international law, with respect to the exploration and exploitation of natural resources, but this paragraph shall apply in the case of a foreign country only if it exercises, directly or indirectly, taxing jurisdiction with respect to such exploration or exploitation.
No foreign country shall, by reason of the application of this section, be treated as a country contiguous to the United States.
(Added Pub. L. 91–172, title V, § 505(a), Dec. 30, 1969, 83 Stat. 634.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 638
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 2 other sections
- § 861(a)(3) Income from sources within the United States
- § 862(a)(3) Income from sources without the United States
Cited by 12 Code sections
- § 43(c)(1)(D)(i) Enhanced oil recovery credit
- § 45(e)(1)(A) Electricity produced from certain renewable resources, etc.
- § 45K(d)(1)(A) Credit for producing fuel from a nonconventional source
- § 45Q(f)(1)(A) Credit for carbon oxide sequestration
- § 45V(c)(2)(B)(i)(I) Credit for production of clean hydrogen
- § 45X(d)(2)(A) Advanced manufacturing production credit
- § 45Y(e)(3)(C) Clean electricity production credit
- § 167(h)(1) Depreciation
- § 863(d)(2)(B)(iii) Special rules for determining source
- § 1441(f) Withholding of tax on nonresident aliens
- § 4121(d)(3) Imposition of tax
- § 4612(a)(4)(B) Definitions and special rules
Cited in 18 regulations not issued under it
- § 1.43-2 Qualified enhanced oil recovery project.
- § 1.45Q-1 Credit for Carbon Oxide Sequestration.
- § 1.45V-1 Credit for production of clean hydrogen.
- § 1.45X-1 General rules applicable to the advanced manufacturing production credit.
- § 1.45Y-4 Rules of general application.
- § 1.50B-1 Definitions of WIN expenses and WIN employees.
- § 1.250(b)-3 Foreign-derived deduction eligible income (FDDEI) transactions.
- § 1.613A-7 Definitions.
- § 1.617-2 Limitation on amount deductible.
- § 1.861-4 Compensation for labor or personal services.
- § 1.901-3 Reduction in amount of foreign taxes on foreign mineral income allowed as a credit.
- § 1.954-6 Foreign base company shipping income.
- § 1.954-8 Foreign base company oil related income.
- § 1.956-2 Definition of United States property.
- § 1.1402(a)-12 Continental shelf and certain possessions of the United States.
- § 1.1502-16 Mine exploration expenditures.
- § 31.3401(a)-1 Wages.
- § 52.4681-1 Taxes imposed with respect to ozone-depleting chemicals.
Amendment history
From the source credit and the official notes, newest first.
- Added by Pub. L. 91–172