REDUCTION IN DIVIDEND RECEIVED DEDUCTIONS TO REFLECT LOWER CORPORATE INCOME TAX RATES.

SEC. 13002. REDUCTION IN DIVIDEND RECEIVED DEDUCTIONS TO REFLECT LOWER CORPORATE INCOME TAX RATES.(a) Dividends Received by Corporations.—(1) In general.—Section 243(a)(1) is amended by striking “70 percent” and inserting “50 percent”.(2) Dividends from 20-percent owned corporations.—Section 243(c)(1) is amended—(A) by striking “80 percent” and inserting “65 percent”, and(B) by striking “70 percent” and inserting “50 percent”.(3) Conforming amendment.—The heading for section 243(c) is amended by striking “Retention of 80-percent Dividend Received Deduction” and inserting “Increased Percentage”.(b) Dividends Received From FSC.—Section 245(c)(1)(B) is amended—(1) by striking “70 percent” and inserting “50 percent”, and(2) by striking “80 percent” and inserting “65 percent”.(c) Limitation on Aggregate Amount of Deductions.—Section 246(b)(3) is amended—(1) by striking “80 percent” in subparagraph (A) and inserting “65 percent”, and(2) by striking “70 percent” in subparagraph (B) and inserting “50 percent”.(d) Reduction in Deduction Where Portfolio Stock Is Debt-financed.—Section 246A(a)(1) is amended—(1) by striking “70 percent” and inserting “50 percent”, and(2) by striking “80 percent” and inserting “65 percent”.(e) Income From Sources Within the United States.—Section 861(a)(2) is amended—131 STAT. 2101(1) by striking “100/70th” and inserting “100/50th” in subparagraph (B), and(2) in the flush sentence at the end—(A) by striking “100/80th” and inserting “100/65th”, and(B) by striking “100/70th” and inserting “100/50th”.(f) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017.