Ill STAT. 966 PUBLIC LAW 105-34—AUG. 5, 1997 as paragraph (4) and inserting after paragraph (2) the following new paragraph: Regulations. " (3) AUTHORITY TO PERMIT USE OF AVERAGE RATES.— To the extent prescribed in regulations, the average exchange rate for the period (specified in such regulations) during which the taxes or adjustment is paid may be used instead of the exchange rate as of the time of such payment.". (2) DETERMINATION OF AVERAGE RATES.— Subsection (c) of section 989 is amended by striking "and" at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting ", and", and by adding at the end thereof the following new paragraph: "(6) setting forth procedures for determining the average exchange rate for any period.". (3) CONFORMING AMENDMENTS.— Subsection (b) of section 989 is amended by striking "weighted" each place it appears, (c) EFFECTIVE DATES.— 26 USC 986 note. (1) IN GENERAL.—The amendments made by subsections (a)(1) and (b) shall apply to taxes paid or accrued in taxable years beginning after December 31, 1997. 26 USC 905 note. (2) SUBSECTION (a)(2). — The amendment made by subsection (a)(2) shall apply to taxes which relate to taxable years beginning after December 31, 1997. SEC. 1103. ELECTION TO USE SIMPLIFIED SECTION 904 LIMITATION FOR ALTERNATIVE MINIMUM TAX. (a) GENERAL RULE. —Subsection (a) of section 59 (relating to alternative minimum tax foreign tax credit) is amended by adding at the end thereof the following new paragraph: "(3) ELECTION TO USE SIMPLIFIED SECTION 904 LIMITATION. — "(A) IN GENERAL.— In determining the alternative minimum tax foreign tax credit for any taxable year to which an election under this paragraph applies— "(i) subparagraph (B) of paragraph (1) shall not apply, and "(ii) the limitation of section 904 shall be based on the proportion which— "(I) the taxpayer's taxable income (as determined for purposes of the regular tax) from sources without the United States (but not in excess of the taxpayer's entire alternative minimum taxable income), bears to "(II) the taxpayer's entire alternative minimum taxable income for the taxable year. "(B) ELECTION.— "(i) IN GENERAL.—An election under this paragraph may be made only for the taxpayer's first taxable year which begins after December 31, 1997, and for which the taxpayer claims an alternative minimum tax foreign tax credit. Applicability. " (ii) ELECTION REVOCABLE ONLY WITH CONSENT. — An election under this paragraph, once made, shall apply to the taxable year for which made and all subsequent taxable years unless revoked with the consent of the Secretary.". 26 USC 59 note. (b) EFFECTIVE DATE.— The amendment made by this section shall apply to taxable years beginning after December 31, 1997.
�
