Limitation on credit

The total amount of the credit taken under section 901(a) shall not exceed the same proportion of the tax against which such credit is taken which the taxpayer’s taxable income from sources without the United States (but not in excess of the taxpayer’s entire taxable income) bears to his entire taxable income for the same taxable year.

( Aug. 16, 1954, ch. 736 , 68A Stat. 287 ; Pub. L. 85–866, title I, § 42(a) , Sept. 2, 1958 , 72 Stat. 1639 ; Pub. L. 86–780, § 1 , Sept. 14, 1960 , 74 Stat. 1010 ; Pub. L. 87–834 , §§ 10(a), 12(b)(2), Oct. 16, 1962 , 76 Stat. 1002 , 1031; Pub. L. 88–272, title II, § 234(b)(6) , Feb. 26, 1964 , 78 Stat. 116 ; Pub. L. 89–809, title I, § 106(c)(1) , Nov. 13, 1966 , 80 Stat. 1570 ; Pub. L. 91–172, title V, § 506(b) , Dec. 30, 1969 , 83 Stat. 635 ; Pub. L. 92–178, title V, § 502(b)(2) –(4), Dec. 10, 1971 , 85 Stat. 549 ; Pub. L. 94–455, title V, § 503(b)(1) , title X, §§ 1031(a), 1032(a), 1034(a), 1051(e), title XIX, § 1901(b)(10)(B), Oct. 4, 1976 , 90 Stat. 1562 , 1620, 1624, 1629, 1646, 1795; Pub. L. 95–30, title I, § 102(b)(11) , May 23, 1977 , 91 Stat. 138 ; Pub. L. 95–600, title IV , §§ 403(c)(4), 421(e)(6), title VII, § 701(q)(2), (u)(2)(A)–(C), (3)(A), (4)(A), (B), (8)(C), Nov. 6, 1978 , 92 Stat. 2868 , 2876, 2910, 2913, 2916; Pub. L. 96–222, title I, § 104(a)(3)(D) , Apr. 1, 1980 , 94 Stat. 215 ; Pub. L. 97–248, title II, § 211(c)(2) , Sept. 3, 1982 , 96 Stat. 449 ; Pub. L. 98–21, title I, § 122(c)(1) , Apr. 20, 1983 , 97 Stat. 87 ; Pub. L. 98–369, div. A, title I , §§ 121(a), 122(a), title IV, § 474(r)(21), title VIII, § 801(d)(2), July 18, 1984 , 98 Stat. 638 , 643, 843, 995; Pub. L. 99–514, title I, § 104(b)(13) , title VII, § 701(e)(4)(H), title XII, §§ 1201(a), (b), (d)(1)–(3), 1203(a), 1211(b)(3), 1235(f)(4), title XVIII, §§ 1810(a)(1)(A), (b)(1)–(4)(A), 1876(d)(2), 1899A(24), Oct. 22, 1986 , 100 Stat. 2105 , 2343, 2520, 2525, 2531, 2536, 2575, 2821, 2823, 2899, 2959; Pub. L. 100–647, title I , §§ 1003(b)(2), 1012(a)(1)(A), (2)–(4), (6)–(11), (c), (p)(11), (29), (q)(12), (bb)(4)(A), title II, § 2004( l ), Nov. 10, 1988 , 102 Stat. 3383 , 3493–3497, 3517, 3521, 3525, 3534, 3606; Pub. L. 101–239, title VII , §§ 7402(a), 7811(i)(1), Dec. 19, 1989 , 103 Stat. 2357 , 2409; Pub. L. 101–508, title XI , §§ 11101(d)(5), 11801(a)(31), Nov. 5, 1990 , 104 Stat. 1388–405 , 1388–521; Pub. L. 103–66, title XIII , §§ 13227(d), 13235(a)(2), Aug. 10, 1993 , 107 Stat. 494 , 504; Pub. L. 104–188, title I , §§ 1501(b)(1), (12), 1703(i)(1), 1704(t)(36), Aug. 20, 1996 , 110 Stat. 1825 , 1826, 1876, 1889; Pub. L. 105–34, title III, § 311(c)(3) , title XI, §§ 1101(a), 1105(a), (b), 1111(b), 1163(b), Aug. 5, 1997 , 111 Stat. 835 , 963, 967, 969, 987; Pub. L. 106–170, title V, § 501(b)(2) , Dec. 17, 1999 , 113 Stat. 1919 ; Pub. L. 107–16, title II , §§ 201(b)(2)(G), 202(f)(2)(C), title VI, § 618(b)(2)(D), June 7, 2001 , 115 Stat. 46 , 49, 108; Pub. L. 107–147, title IV, § 417(23)(B) , title VI, § 601(b)(1), Mar. 9, 2002 , 116 Stat. 57 , 59; Pub. L. 108–311, title III, § 312(b)(1) , Oct. 4, 2004 , 118 Stat. 1181 ; Pub. L. 108–357, title IV , §§ 402(a), 403(a)–(b)(5), 404(a)–(f), 413(c)(14), (15), 417(a), title VIII, § 895(a), Oct. 22, 2004 , 118 Stat. 1491–1495 , 1508, 1512, 1647; Pub. L. 109–135, title IV , §§ 402(i)(3)(G), 403(k), ( o ), Dec. 21, 2005 , 119 Stat. 2614 , 2625, 2626; Pub. L. 110–172, § 11(f)(3) , (g)(10), Dec. 29, 2007 , 121 Stat. 2489 , 2490; Pub. L. 111–5, div. B, title I , §§ 1004(b)(5), 1142(b)(1)(E), 1144(b)(1)(E), Feb. 17, 2009 , 123 Stat. 314 , 330, 332; Pub. L. 111–148, title X, § 10909(b)(2)(K) , (c), Mar. 23, 2010 , 124 Stat. 1023 ; Pub. L. 111–226, title II , §§ 213(a), 217(c)(2), Aug. 10, 2010 , 124 Stat. 2398 , 2402; Pub. L. 111–312, title I, § 101(b)(1) , Dec. 17, 2010 , 124 Stat. 3298 ; Pub. L. 112–240, title I, § 104(c)(2)(K) , Jan. 2, 2013 , 126 Stat. 2322 ; Pub. L. 113–295, div. A, title II , §§ 219(c), 221(a)(72), Dec. 19, 2014 , 128 Stat. 4035 , 4049; Pub. L. 115–97, title I , §§ 13001(b)(2)(M), 14101(d), 14201(b)(2), 14301(c)(15)–(19), 14302(a), (b), 14304(a), Dec. 22, 2017 , 131 Stat. 2097 , 2191, 2212, 2223, 2225; Pub. L. 115–141, div. U, title IV, § 401(a)(157) , (d)(1)(D)(xiii), (xiv), Mar. 23, 2018 , 132 Stat. 1191 , 1208; Pub. L. 119–21, title VII , §§ 70311(a)–(b)(2), 70313(a), July 4, 2025 , 139 Stat. 202 , 203.)