# 26 U.S.C. § 904: Limitation on credit

> Federal · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/usc_t26_s904

## Section

- **Citation:** 26 U.S.C. § 904
- **Heading:** Limitation on credit
- **Jurisdiction:** Federal
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** September 16, 2026
- **Source:** Publisher's official text
- **Location:** Title 26—INTERNAL REVENUE CODE > Subtitle A—Income Taxes > CHAPTER 1—NORMAL TAXES AND SURTAXES > Subchapter N—Tax Based on Income From Sources Within or Without the United States > PART III—INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart A—Foreign Tax Credit

## Text

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.)

## Nearby sections

- [26 U.S.C. § 901 Taxes of foreign countries and of possessions of United States](https://www.frixlaw.com/law-library/statutes/usc_t26_s901.md)
- [26 U.S.C. § 902 Repealed. Pub. L. 115–97, title I, § 14301(a) , Dec. 22, 2017 , 131 Stat. 2221 ]](https://www.frixlaw.com/law-library/statutes/usc_t26_s902.md)
- [26 U.S.C. § 903 Credit for taxes in lieu of income, etc., taxes](https://www.frixlaw.com/law-library/statutes/usc_t26_s903.md)
- [26 U.S.C. § 904 Limitation on credit](https://www.frixlaw.com/law-library/statutes/usc_t26_s904.md)
- [26 U.S.C. § 905 Applicable rules](https://www.frixlaw.com/law-library/statutes/usc_t26_s905.md)
- [26 U.S.C. § 906 Nonresident alien individuals and foreign corporations](https://www.frixlaw.com/law-library/statutes/usc_t26_s906.md)
- [26 U.S.C. § 907 Special rules in case of foreign oil and gas income](https://www.frixlaw.com/law-library/statutes/usc_t26_s907.md)
- [26 U.S.C. § 908 Reduction of credit for participation in or cooperation with an international boycott](https://www.frixlaw.com/law-library/statutes/usc_t26_s908.md)
- [26 U.S.C. § 909 Suspension of taxes and credits until related income taken into account](https://www.frixlaw.com/law-library/statutes/usc_t26_s909.md)
- [26 U.S.C. § 911 Citizens or residents of the United States living abroad](https://www.frixlaw.com/law-library/statutes/usc_t26_s911.md)
- [26 U.S.C. § 912 Exemption for certain allowances](https://www.frixlaw.com/law-library/statutes/usc_t26_s912.md)
- [26 U.S.C. § 913 Repealed. Pub. L. 97–34, title I, § 112(a) , Aug. 13, 1981 , 95 Stat. 194 ]](https://www.frixlaw.com/law-library/statutes/usc_t26_s913.md)
- [26 U.S.C. § 921 to 927 Repealed. Pub. L. 106–519, § 2 , Nov. 15, 2000 , 114 Stat. 2423 ]](https://www.frixlaw.com/law-library/statutes/usc_t26_s921...927.md)
- [26 U.S.C. § 931 Income from sources within Guam, American Samoa, or the Northern Mariana Islands](https://www.frixlaw.com/law-library/statutes/usc_t26_s931.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/usc_t26_s904. Check the current official text before relying on it. Not legal advice.