EXCLUSION OF DIVIDENDS FROM CONTROLLED FOREIGN CORPORATIONS FROM THE DEFINITION OF PERSONAL HOLDING COMPANY INCOME FOR PURPOSES OF THE PERSONAL HOLDING COMPANY RULES.

SEC. 207. EXCLUSION OF DIVIDENDS FROM CONTROLLED FOREIGN CORPORATIONS FROM THE DEFINITION OF PERSONAL HOLDING COMPANY INCOME FOR PURPOSES OF THE PERSONAL HOLDING COMPANY RULES.(a) In General.—Section 543(a)(1) is amended—(1) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively, and(2) by inserting after subparagraph (B) the following:“(C) dividends received by a United States shareholder (as defined in section 951(b)) from a controlled foreign corporation (as defined in section 957(a)),”.(b) Effective Date.—The amendments made by this Act shall apply to taxable years ending on or after the date of the enactment of this Act.