APPLICATION OF DENIAL OF FOREIGN TAX CREDIT REGARDING TRADE AND INVESTMENT WITH RESPECT TO CERTAIN FOREIGN COUNTRIES.

SEC. 601. APPLICATION OF DENIAL OF FOREIGN TAX CREDIT REGARDING TRADE AND INVESTMENT WITH RESPECT TO CERTAIN FOREIGN COUNTRIES. (a) In General.—Section 901(j) of the Internal Revenue Code of 1986 (relating to denial of foreign tax credit, etc., regarding trade and investment with respect to certain foreign countries) is amended by adding at the end the following new paragraph: “(5) Waiver of denial.— “(A) In General.—Paragraph (1) shall not apply with respect to taxes paid or accrued to a country if the President— “(i) determines that a waiver of the application of such paragraph is in the national interest of the United States and will expand trade and investment opportunities for United States companies in such country; and “(ii) reports such waiver under subparagraph (B). “(B) Report.—Not less than 30 days before the date on which a waiver is granted under this paragraph, the President shall report to Congress— “(i) the intention to grant such waiver; and “(ii) the reason for the determination under subparagraph (A)(i).”. (b) Effective Date.—The amendment made by this section shall apply on or after February 1, 2001.