special rule with respect to certain redemptions by foreign subsidiaries

special rule with respect to certain redemptions by foreign subsidiariesSec. 215. (a) In General.—Paragraph (5) of section 304(b) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:“(B) Special rule in case of foreign acquiring corporation.—In the case of any acquisition to which subsection (a) applies in which the acquiring corporation is a foreign corporation, no earnings and profits shall be taken into account under paragraph (2)(A) (and subparagraph (A) shall not apply) if more than 50 percent of the dividends arising from such acquisition (determined without regard to this subparagraph) would neither—124 STAT. 2400“(i) be subject to tax under this chapter for the taxable year in which the dividends arise, nor“(ii) be includible in the earnings and profits of a controlled foreign corporation (as defined in section 957 and without regard to section 953(c)).”.(b) Effective Date.—The amendments made by this section shall apply to acquisitions after the date of the enactment of this Act.