Applicable rules

The credits provided in this subpart may, at the option of the taxpayer and irrespective of the method of accounting employed in keeping his books, be taken in the year in which the taxes of the foreign country or the possession of the United States accrued, subject, however, to the conditions prescribed in subsection (c). If the taxpayer elects to take such credits in the year in which the taxes of the foreign country or the possession of the United States accrued, the credits for all subsequent years shall be taken on the same basis, and no portion of any such taxes shall be allowed as a deduction in the same or any succeeding year.

( Aug. 16, 1954, ch. 736 , 68A Stat. 288 ; Pub. L. 85–866, title I, § 103(b) , Sept. 2, 1958 , 72 Stat. 1675 ; Pub. L. 94–455, title XIX , §§ 1901(a)(114), 1906(b)(13)(A), Oct. 4, 1976 , 90 Stat. 1784 , 1834; Pub. L. 96–603, § 2(c)(1) , Dec. 28, 1980 , 94 Stat. 3509 ; Pub. L. 97–248, title III, § 343(a) , Sept. 3, 1982 , 96 Stat. 635 ; Pub. L. 105–34, title XI, § 1102(a)(2) , Aug. 5, 1997 , 111 Stat. 964 ; Pub. L. 115–97, title I, § 14301(c)(20) , (21), Dec. 22, 2017 , 131 Stat. 2223 .)