Internal Revenue Code · 26 U.S.C.
§ 951A. Net CFC tested income included in gross income of United States shareholders
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. § 951A
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- December 22, 2017 by Pub. L. 115–97
- Last amended
- July 4, 2025 by Pub. L. 119–21
- Amendments
- 1 dated changes in the source credit
- Length
- 4 subsections · 884 words · about 4 min to read
- Defines
- 3 terms
- Cross-references
- cites 19; cited by 6 Code sections and 38 other regulations
- Regulations
- 7 issued under this section
Each person who is a United States shareholder of any controlled foreign corporation for any taxable year of such United States shareholder shall include in gross income such shareholder’s net CFC tested income for such taxable year.
The term “tested loss” means, with respect to any controlled foreign corporation for any taxable year of such controlled foreign corporation, the excess (if any) of the amount described in subparagraph (A)(ii) over the amount described in subparagraph (A)(i).
Section 952(c)(1)(A) shall be applied by increasing the earnings and profits of the controlled foreign corporation by the tested loss of such corporation.
The pro rata shares referred to in subsections (b)(1)(A) and (b)(1)(B), respectively, shall be determined under the rules of section 951(a)(2) in the same manner as such section applies to subpart F income and shall be taken into account in the taxable year of the United States shareholder determined under section 951(a)(3).
A person shall be treated as a United States shareholder of a controlled foreign corporation for any taxable year of such person only if such person owns (within the meaning of section 958(a)) stock in such foreign corporation on any day in such taxable year.
A foreign corporation shall be treated as a controlled foreign corporation for any taxable year if such foreign corporation is a controlled foreign corporation at any time during such taxable year.
Except as provided in subparagraph (B), any net CFC tested income included in gross income under subsection (a) shall be treated in the same manner as an amount included under section 951(a)(1)(A) for purposes of applying sections 168(h)(2)(B), 535(b)(10), 851(b), 904(h), 959, 961, 962, 993(a)(1)(E), 996(f)(1), 1248(b)(1), 1248(d)(1), 6501(e)(1)(C), 6654(d)(2)(D), and 6655(e)(4).
The Secretary shall provide rules for the application of subparagraph (A) to other provisions of this title in any case in which the determination of subpart F income is required to be made at the level of the controlled foreign corporation.
(Added Pub. L. 115–97, title I, § 14201(a), Dec. 22, 2017, 131 Stat. 2208; amended Pub. L. 119–21, title VII, §§ 70311(b)(3), 70323(a)(1), (2), (3)(B), (C), (E)(i), 70354(b), July 4, 2025, 139 Stat. 203, 205, 211.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 951A
- § 1.951A-1 General provisions.
- § 1.951A-2 Tested income and tested loss.
- § 1.951A-3 Qualified business asset investment.
- § 1.951A-4 Tested interest expense and tested interest income.
- § 1.951A-5 Treatment of GILTI inclusion amounts.
- § 1.951A-6 Adjustments related to tested losses.
- § 1.951A-7 Applicability dates.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 19 other sections
- § 952(b) Subpart F income defined
- § 954 Foreign base company income
- § 953 Insurance income
- § 907(c)(1) Special rules in case of foreign oil and gas income
- § 951(a)(2) Amounts included in gross income of United States shareholders
- § 958(a) Rules for determining stock ownership
- § 168(h)(2)(B) Accelerated cost recovery system
- § 535(b)(10) Accumulated taxable income
- § 851(b) Definition of regulated investment company
- § 904(h) Limitation on credit
- § 959 Exclusion from gross income of previously taxed earnings and profits
- § 961 Adjustments to basis of stock in controlled foreign corporations and of other property
- § 962 Election by individuals to be subject to tax at corporate rates
- § 993(a)(1)(E) Definitions and special rules
- § 996(f)(1) Rules for allocation in the case of distributions and losses
- § 1248(b)(1) Gain from certain sales or exchanges of stock in certain foreign corporations
- § 6501(e)(1)(C) Limitations on assessment and collection
- § 6654(d)(2)(D) Failure by individual to pay estimated income tax
- § 6655(e)(4) Failure by corporation to pay estimated income tax
Cited by 6 Code sections
- § 56A(c)(2)(C) Adjusted financial statement income
- § 163(j)(8)(A)(vi) Interest
- § 250(a)(1)(B)(i) Foreign-derived deduction eligible income and net CFC tested income
- § 904(d)(1)(A) Limitation on credit
- § 951B(a)(1) Amounts included in gross income of foreign controlled United States shareholders
- § 960(d)(1) Deemed paid credit for subpart F inclusions
Cited in 38 regulations not issued under it
- § 1.78-1 Gross up for deemed paid foreign tax credit.
- § 1.163(j)-1 Definitions.
- § 1.163(j)-7 Application of the section 163(j) limitation to foreign corporations and United States shareholders.
- § 1.245A-5 Limitation of section 245A deduction and section 954(c)(6) exception.
- § 1.245A-9 Other rules and definitions.
- § 1.245A-10 Examples.
- § 1.245A(d)-1 Disallowance of foreign tax credit or deduction.
- § 1.245A(e)-1 Special rules for hybrid dividends.
- § 1.250(b)-2 Qualified business asset investment (QBAI).
- § 1.267A-3 Income inclusions and amounts not treated as disqualified hybrid amounts.
- § 1.267A-4 Disqualified imported mismatch amounts.
- § 1.267A-6 Examples.
- § 1.367(a)-3 Treatment of transfers of stock or securities to foreign corporations.
- § 1.367(b)-10 Acquisition of parent stock or securities for property in triangular reorganizations.
- § 1.512(b)-1 Modifications.
- § 1.861-8 Computation of taxable income from sources within the United States and from other sources and activities.
- § 1.861-8T Computation of taxable income from sources within the United States and from other sources and activities (temporary).
- § 1.861-12 Characterization rules and adjustments for certain assets.
- § 1.861-13 Special rules for characterization of controlled foreign corporation stock.
- § 1.861-17 Allocation and apportionment of research and experimental expenditures.
- § 1.861-20 Allocation and apportionment of foreign income taxes.
- § 1.904-2 Carryback and carryover of unused foreign tax.
- § 1.904-4 Separate application of section 904 with respect to certain categories of income.
- § 1.904-5 Look-through rules as applied to controlled foreign corporations and other entities.
Show 14 more
- § 1.904-6 Allocation and apportionment of foreign income taxes.
- § 1.904(b)-3 Disregard of certain dividends and deductions under section 904(b)(4).
- § 1.904(f)-12 Transition rules.
- § 1.905-3 Adjustments to U.S. tax liability and to current earnings and profits as a result of a foreign tax redetermination.
- § 1.951-1 Amounts included in gross income of United States shareholders.
- § 1.960-1 Overview, definitions, and computational rules for determining foreign income taxes deemed paid under section 960(a), (b), and (d).
- § 1.960-2 Foreign income taxes deemed paid under sections 960(a) and (d).
- § 1.960-3 Foreign income taxes deemed paid under section 960(b).
- § 1.960-4 Additional foreign tax credit in year of receipt of previously taxed earnings and profits.
- § 1.960-6 Overpayments resulting from increase in limitation for taxable year of exclusion.
- § 1.962-1 Limitation of tax for individuals on amounts included in gross income under section 951(a).
- § 1.987-11 Suspended section 987 loss relating to certain elections; loss-to-the-extent-of-gain rule.
- § 1.1502-12 Separate taxable income.
- § 1.1502-51 Consolidated section 951A.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter N Tax Based on Income From Sources Within or Without the United States
- Part III INCOME FROM SOURCES WITHOUT THE UNITED STATES
- Subpart F Controlled Foreign Corporations
Nearby sections
- § 951 Amounts included in gross income of United States shareholders
- § 951A Net CFC tested income included in gross income of United States shareholders
- § 951B Amounts included in gross income of foreign controlled United States shareholders
- § 952 Subpart F income defined
- § 953 Insurance income
- § 954 Foreign base company income
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2025—Pub. L. 119–21, § 70323(a)(3)(E)(i), substituted “Net CFC tested income” for “Global intangible low-taxed income” in section catchline.
Subsec. (a). Pub. L. 119–21, § 70323(a)(1), substituted “net CFC tested income” for “global intangible low-taxed income”.
Subsec. (b). Pub. L. 119–21, § 70323(a)(2), redesignated subsec. (c) as (b) and struck out former subsec. (b) defining “global intangible low-taxed income” and “net deemed tangible income return”.
Subsec. (b)(1)(A). Pub. L. 119–21, § 70354(b)(1)(A), struck out “(determined for each taxable year of such controlled foreign corporation which ends in or with such taxable year of such United States shareholder)” after “such United States shareholder”.
Subsec. (b)(1)(B). Pub. L. 119–21, § 70354(b)(1)(B), struck out “(determined for each taxable year of such controlled foreign corporation which ends in or with such taxable year of such United States shareholder)” before period at end.
Subsec. (c). Pub. L. 119–21, § 70323(a)(2), redesignated subsec. (e) as (c). Former subsec. (c) redesignated (b).
Subsec. (c)(1). Pub. L. 119–21, § 70354(b)(2)(A), substituted “determined under section 951(a)(3)” for “in which or with which the taxable year of the controlled foreign corporation ends”.
Pub. L. 119–21, § 70323(a)(3)(B), substituted “subsections (b)(1)(A) and (b)(1)(B)” for “subsections (b), (c)(1)(A), and (c)(1)(B)”.
Subsec. (c)(2). Pub. L. 119–21, § 70354(b)(2)(B), substituted “any day in such taxable year” for “the last day in the taxable year of such foreign corporation on which such foreign corporation is a controlled foreign corporation”.
Subsec. (d). Pub. L. 119–21, § 70323(a)(3)(C)(i), substituted “net CFC tested income” for “global intangible low-taxed income” wherever appearing. Substitution was also made in heading of par. (2) of subsec. (d) to reflect the probable intent of Congress.
Pub. L. 119–21, § 70323(a)(2), redesignated subsec. (f) as (d) and struck out former subsec. (d) which related to qualified business asset investment.
Subsec. (d)(2)(B)(ii). Pub. L. 119–21, § 70323(a)(3)(C)(ii), substituted “subsection (b)(1)(A)” for “subsection (c)(1)(A)”.
Subsec. (e). Pub. L. 119–21, § 70323(a)(2), redesignated subsec. (e) as (c).
Subsec. (f). Pub. L. 119–21, § 70323(a)(2), redesignated subsec. (f) as (d).
Subsec. (f)(1)(A). Pub. L. 119–21, § 70311(b)(3), substituted “904(h)” for “904(h)(1)”.
Statutory Notes and Related Subsidiaries
Effective Date of 2025 Amendment
Amendment by section 70311(b)(3) of Pub. L. 119–21 applicable to taxable years beginning after Dec. 31, 2025, see section 70311(c) of Pub. L. 119–21, set out as a note under section 904 of this title.
Amendment by section 70323(a)(1), (2), (3)(B), (C), (E)(i) of Pub. L. 119–21 applicable to taxable years beginning after Dec. 31, 2025, see section 70323(c) of Pub. L. 119–21, set out as a note under section 172 of this title.
Amendment by section 70354(b) of Pub. L. 119–21 applicable to taxable years of foreign corporations beginning after Dec. 31, 2025, see section 70354(c) of Pub. L. 119–21, set out as a note under section 951 of this title.
Effective Date
Section applicable to taxable years of foreign corporations beginning after Dec. 31, 2017, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see section 14201(d) of Pub. L. 115–97, set out as an Effective Date of 2017 Amendment note under section 904 of this title.