71.26(1m)(em)
(em) Those issued under s.
234.08 or
234.61, on or after January 1, 2004, if the obligations are issued to fund multifamily affordable housing projects or elderly housing projects.
71.26(1m)(g)
(g) Those issued under s.
66.0621 by a local professional baseball park district, a local professional football stadium district, or a local cultural arts district.
71.26(1m)(i)
(i) Those issued under s.
231.03 (6), on or after October 27, 2007, if the proceeds from the obligations that are issued are used by a health facility, as defined in s.
231.01 (5), to fund the acquisition of information technology hardware or software.
71.26(1m)(k)1.
1. The bonds or notes are used to fund multifamily affordable housing projects or elderly housing projects in this state, and the Wisconsin Housing and Economic Development Authority has the authority to issue its bonds or notes for the project being funded.
71.26(1m)(k)2.
2. The bonds or notes are used by a health facility, as defined in s.
231.01 (5), to fund the acquisition of information technology hardware or software, in this state, and the Wisconsin Health and Educational Facilities Authority has the authority to issue its bonds or notes for the project being funded.
71.26(1m)(k)3.
3. The bonds or notes are issued to fund a redevelopment project in this state or a housing project in this state, and the authority exists for bonds or notes to be issued by an entity described under s.
66.1201,
66.1333, or
66.1335.
71.26(1m)(L)
(L) Those issued under s.
231.03 (6), if the bonds or notes are issued for the benefit of a person who is eligible to receive the proceeds of bonds or notes from another entity for the same purpose for which the bonds or notes are issued under s.
231.03 (6) and the interest income received from the other bonds or notes is exempt from taxation under this subchapter.
71.26(1m)(m)
(m) Those issued by the Wisconsin Housing and Economic Development Authority to provide loans to a public affairs network under s.
234.75 (4).
71.26(1m)(n)
(n) Those issued by a sponsoring municipality to assist a local exposition district created under subch.
II of ch. 229.
71.26(1m)(o)
(o) Those issued by the Wisconsin Health and Educational Facilities Authority under s.
231.03 (6), if the bonds or notes are issued in an amount totaling $35,000,000 or less, and to the extent that the interest income received is not otherwise exempt under this subsection.
71.26(2)(a)(a)
Corporations in general. The “net income" of a corporation means the gross income as computed under the Internal Revenue Code as modified under sub.
(3) and modified as follows:
71.26(2)(a)3.
3. Minus, as provided under s.
71.28 (3) (c) 7., the amount of the credit under s.
71.28 (3) that the taxpayer added to income under this paragraph at the time that the taxpayer first claimed the credit.
71.26(2)(a)4.
4. Plus the amount of the credit computed under s.
71.28 (1dm),
(1dx),
(1dy),
(3g),
(3h),
(3n),
(3q),
(3t),
(3w),
(3wm),
(3y),
(5e),
(5g),
(5i),
(5j),
(5k),
(5r),
(5rm),
(6n), and
(10) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s.
71.21 (4) or
71.34 (1k) (g).
71.26(2)(a)5.
5. Plus the amount of losses from the sale or other disposition of assets the gain from which would be wholly exempt income, as defined in sub.
(3) (L), if the assets were sold or otherwise disposed of at a gain and minus deductions, as computed under the Internal Revenue Code as modified under sub.
(3).
71.26(2)(a)6.
6. Plus or minus, as appropriate, an amount equal to the difference between the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction during the taxable year, except as provided in par.
(b) and s.
71.45 (2) and
(5).
71.26(2)(a)7.
7. Plus the amount deducted or excluded under the Internal Revenue Code for interest expenses, rental expenses, intangible expenses, and management fees that are directly or indirectly paid, accrued, or incurred to, or in connection directly or indirectly with one or more direct or indirect transactions with, one or more related entities.
71.26(2)(a)8.
8. Minus the amount added to gross income under subd.
7., to the extent that the conditions under s.
71.80 (23) are satisfied.
71.26(2)(a)9.
9. Minus the amount added, pursuant to subd.
7. or s.
71.05 (6) (a) 24.,
71.34 (1k) (j), or
71.45 (2) (a) 16., to the federal income of a related entity that paid interest expenses, rental expenses, intangible expenses, or management fees to the corporation, to the extent that the related entity could not offset such amount with the deduction allowable under subd.
8. or s.
71.05 (6) (b) 45.,
71.34 (1k) (k), or
71.45 (2) (a) 17. 71.26(2)(a)11.
11. Plus the amount computed under s.
71.28 (5n) in the previous taxable year that is not included in federal taxable income.
71.26(2)(b)
(b)
Regulated investment companies, real estate mortgage investment conduits, real estate investment trusts and financial asset securitization investment trusts. 71.26(2)(b)10.a.a. For taxable years beginning after December 31, 2013, and before January 1, 2017, for a corporation, conduit, or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.
71.26(2)(b)10.b.
b. For purposes of subd.
10. a., “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2013, except as provided in subd.
10. c. and
d. and subject to subd.
10. e. 71.26(2)(b)10.c.
c. For purposes of subd.
10. a., “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2013: section 13113 of P.L
103-66; sections 1, 3, 4, and 5 of P.L.
106-519; sections 101, 102, and 422 of P.L
108-357; sections 1310 and 1351 of P.L.
109-58; section 11146 of P.L.
109-59; section 403 (q) of P.L.
109-135; section 513 of P.L.
109-222; sections 104 and 307 of P.L.
109-432; sections 8233 and 8235 of P.L.
110-28; section 11 (e) and (g) of P.L.
110-172; section 301 of P.L.
110-245; sections 15303 and 15351 of P.L.
110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L.
110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L.
111-5; sections 211, 212, 213, 214, and 216 of P.L.
111-226; sections 2011 and 2122 of P.L.
111-240; sections 753, 754, and 760 of P.L.
111-312; section 1106 of P.L.
112-95; and sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L.
112-240.
71.26(2)(b)10.d.
d. For purposes of subd.
10. a., “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2013, except that “Internal Revenue Code" includes the provisions of P.L.
113-97, P.L.
113-159, P.L.
113-168, section 302901 of P.L.
113-287, sections 171, 172, and 201 to 221 of P.L.
113-295, sections 102, 105, and 207 of division B of P.L.
113-295, P.L.
114-14, P.L.
114-26, section 2004 of P.L.
114-41, sections 503 and 504 of P.L.
114-74, sections 103, 104, 124, 168, 184, 185, 190, 204, 303, 306, 336, and 341 of division Q of P.L.
114-113, P.L.
114-239, sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L.
115-141, and section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L.
116-94.
71.26(2)(b)10.e.
e. For purposes of subd.
10. a., the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this subdivision, apply for Wisconsin purposes at the same time as for federal purposes.
71.26(2)(b)11.a.a. For taxable years beginning after December 31, 2016, and before January 1, 2018, for a corporation, conduit, or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.
71.26(2)(b)11.b.
b. For purposes of subd.
11. a., “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2016, except as provided in subd.
11. c. and
d. and s.
71.98 and subject to subd.
11. e. 71.26(2)(b)11.c.
c. For purposes of subd.
11. a., “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2016: section 13113 of P.L
103-66; sections 1, 3, 4, and 5 of P.L.
106-519; sections 101, 102, and 422 of P.L
108-357; sections 1310 and 1351 of P.L.
109-58; section 11146 of P.L.
109-59; section 403 (q) of P.L.
109-135; section 513 of P.L.
109-222; sections 104 and 307 of P.L.
109-432; sections 8233 and 8235 of P.L.
110-28; section 11 (e) and (g) of P.L.
110-172; section 301 of P.L.
110-245; section 15351 of P.L.
110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L.
110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L.
111-5; sections 211, 212, 213, 214, and 216 of P.L.
111-226; sections 2011 and 2122 of P.L.
111-240; sections 753, 754, and 760 of P.L.
111-312; section 1106 of P.L.
112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L.
112-240; P.L.
114-7; section 1101 of P.L.
114-74; section 305 of division P of P.L.
114-113; and sections 112, 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L.
114-113.
71.26(2)(b)11.d.
d. For purposes of subd.
11. a., “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L.
115-97; sections 40307 and 40413 of P.L.
115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L.
115-141; and section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L.
116-94.
71.26(2)(b)11.e.
e. For purposes of subd.
11. a., the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this subdivision, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by section 4007 (b) of P.L.
114-41, section 1102 of P.L.
114-74, sections 105, 111, 113 to 115, 133, 301, 302, 304, 305, 308, 311, 313 to 323, 325, 331, and 343 to 345 of division Q of P.L.
114-113 first apply for taxable years beginning after December 31, 2016.
71.26(2)(b)12.a.a. For taxable years beginning after December 31, 2017, and before January 1, 2021, for a corporation, conduit, or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.
71.26(2)(b)12.b.
b. For purposes of subd.
12. a., “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subd.
12. c. and
d. and s.
71.98 and subject to subd.
12. e. 71.26(2)(b)12.c.
c. For purposes of subd.
12. a., “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2017: section 13113 of P.L.
103-66; sections 1, 3, 4, and 5 of P.L.
106-519; sections 101, 102, and 422 of P.L.
108-357; sections 1310 and 1351 of P.L.
109-58; section 11146 of P.L.
109-59; section 403 (q) of P.L.
109-135; section 513 of P.L.
109-222; sections 104 and 307 of P.L.
109-432; sections 8233 and 8235 of P.L.
110-28; section 11 (e) and (g) of P.L.
110-172; section 301 of P.L.
110-245; section 15351 of P.L.
110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L.
110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L.
111-5; sections 211, 212, 213, 214, and 216 of P.L.
111-226; sections 2011 and 2122 of P.L.
111-240; sections 753, 754, and 760 of P.L.
111-312; section 1106 of P.L.
112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L.
112-240; P.L.
114-7; section 1101 of P.L.
114-74; section 305 of division P of P.L.
114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L.
114-113; and sections 11011, 11012, 13201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601, 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L.
115-97.
71.26(2)(b)12.d.
d. For purposes of subd.
12. a., “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2017, except that “Internal Revenue Code” includes sections 40307, 40413, and 41113 of P.L.
115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109, 401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L.
115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109, 110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section 1302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L.
116-94; sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L.
116-136; and sections 202, 208, 209, 211, and 214 of division EE and sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L.
116-260.
71.26(2)(b)12.e.
e. For purposes of subd.
12. a., the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this subdivision, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L.
115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L.
115-97 first apply for taxable years beginning after December 31, 2017.
71.26(2)(b)13.a.a. For taxable years beginning after December 31, 2020, for a corporation, conduit, or common law trust that qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust, or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.
71.26(2)(b)13.b.
b. For purposes of subd.
13. a., “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2020, except as provided in subd.
13. c. and
d. and s.
71.98 and subject to subd.
13. e. 71.26(2)(b)13.c.
c. For purposes of subd.
13. a., “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2020: section 13113 of P.L.
103-66; sections 1, 3, 4, and 5 of P.L.
106-519; sections 101, 102, and 422 of P.L.
108-357; sections 1310 and 1351 of P.L.
109-58; section 11146 of P.L.
109-59; section 403 (q) of P.L.
109-135; section 513 of P.L.
109-222; sections 104 and 307 of P.L.
109-432; sections 8233 and 8235 of P.L.
110-28; section 11 (e) and (g) of P.L.
110-172; section 301 of P.L.
110-245; section 15351 of P.L.
110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L.
110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L.
111-5; sections 211, 212, 213, 214, and 216 of P.L.
111-226; sections 2011 and 2122 of P.L.
111-240; sections 753, 754, and 760 of P.L.
111-312; section 1106 of P.L.
112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L.
112-240; P.L.
114-7; section 1101 of P.L.
114-74; section 305 of division P of P.L.
114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L.
114-113; sections 11011, 11012, 13201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601, 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L.
115-97; sections 40304, 40305, 40306, and 40412 of P.L.
115-123; section 101 (c) of division T of P.L.
115-141; sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L.
115-141; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L.
116-94; sections 2304 and 2306 of P.L.
116-136; and sections 111, 114, 115, 116, 118 (a) and (d), 133, 137, 138, and 210 of division EE of P.L.
116-260.
71.26(2)(b)13.d.
d. For purposes of subd.
13. a., “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2020.
71.26(2)(b)13.e.
e. For purposes of subd.
13. a., the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this subdivision, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L.
115-123; section 101 (a), (b), and (h) of division U of P.L.
115-141; section 1203 of P.L.
116-25; section 1122 of P.L.
116-92; section 301 of division O, section 1302 of division P, and sections 101, 102, 103, 117, 118, 132, 201, 202 (a), (b), and (c), 204 (a), (b), and (c), 301, and 302 of division Q of P.L.
116-94; section 2 of P.L.
116-98; and sections 301, 302, and 304 of division EE of P.L.
116-260 apply for taxable years beginning after December 31, 2020.
71.26(3)
(3)
Modifications. The income of a corporation shall be computed under the internal revenue code, except a corporation under sub.
(2) (b), as modified in the following ways:
71.26(3)(ag)
(ag) Section 61 (relating to the definition of gross income) is modified to exclude the following:
71.26(3)(ag)1.
1. Income received by the original policyholder or original certificate holder who has a catastrophic or life-threatening illness or condition from the sale of a life insurance policy or certificate, or the sale of the death benefit under a life insurance policy or certificate, under a life settlement contract, as defined in s.
632.69 (1) (k). In this paragraph, “catastrophic or life-threatening illness or condition" includes AIDS, as defined in s.
49.686 (1) (a), and HIV infection, as defined in s.
49.686 (1) (d).
71.26(3)(ag)2.
2. Income received in the form of allocations issued by this state with moneys received from the coronavirus relief fund authorized under
42 USC 801 to be used for any of the following purposes:
71.26(3)(ag)3.
3. Income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.
71.26(3)(ag)4.
4. Income received in the form of a grant from the restaurant revitalization fund under section 5003 of the federal American Rescue Plan Act of 2021, P.L.
117-2. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible. Amounts excluded under this subdivision by a tax-option corporation or partnership shall be treated as tax-exempt income for purposes of sections
705 and
1366 of the Internal Revenue Code.
71.26(3)(ar)
(ar) Section 78 (relating to treating taxes as dividends) is excluded.
71.26(3)(b)
(b) Section 103 (relating to an exemption for interest) is excluded and replaced, for corporations subject to taxation under s.
71.23 (1), by the rule that any interest income not included in federal taxable income, except interest under sub.
(1m), is added to federal taxable income and any interest income which is by federal law exempt from taxation by this state is excluded, and replaced, for corporations subject to taxation under s.
71.23 (2), by the rule that any interest income not included in federal taxable income is added to federal taxable income.
71.26(3)(c)
(c) Section 108 (b) (relating to reduction of tax attributes) is modified so that the net operating loss under sub.
(4), not the federal net operating loss, and Wisconsin credits, not federal credits, are applied, and the reduction rate for a credit carry-over is 7.9 percent, not 33 1/3 percent.
71.26(3)(cf)
(cf) For taxable years beginning after December 31, 2016, section 118 (a) (relating to nonshareholder contributions to capital) is modified so that the amount of income and franchise tax credits under s.
71.28 (3q) (b),
(3w) (b) and
(bm) 1.,
2., and
4.,
(3wm) (b) and
(bm), and
(3y) (b) that is not included in federal taxable income is added to federal taxable income.
71.26(3)(d)
(d) Section 133 (relating to an exclusion for interest) is excluded.
71.26(3)(e)
(e) Section 162 (relating to trade or business expenses) is modified as follows:
71.26(3)(e)1.
1. So that payments for wages, salaries, commissions and bonuses of employees and officers may be deducted only if the name, address and amount paid to each resident of this state to whom compensation of $600 or more has been paid during the taxable year is reported or if the department of revenue is satisfied that failure to report has resulted in no revenue loss to this state.
71.26(3)(e)2.
2. So that payments for rent may be deducted only if the amount paid, together with the names and addresses of the parties to whom rent has been paid, is reported as provided under s.
71.70 (2).
71.26(3)(e)4.
4. So that moving expenses, as defined in s.
71.01 (8j), paid or incurred during the taxable year to move the taxpayer's Wisconsin business operation, in whole or in part, to a location outside the state or to move the taxpayer's business operations outside the United States may not be deducted as provided under the Internal Revenue Code.
71.26(3)(f)
(f) Section 164 (a) is modified so that foreign taxes are not deductible unless the income on which the tax is based is taxable under this chapter and so that gross receipts taxes assessed in lieu of property taxes, the license fee under s.
76.28 and the taxes under ss.
70.375 and
76.81 are deductible.
71.26(3)(g)
(g) Section 164 (a) (3) is modified so that state taxes and taxes of the District of Columbia that are value-added taxes, single business taxes or taxes on or measured by all or a portion of net income, gross income, gross receipts or capital stock are not deductible.
71.26(3)(h)
(h) Section 164 (a) (4) as it relates to a deduction for the windfall profits tax is excluded.
71.26(3)(hd)
(hd) Section 164 (a) as it relates to a deduction for the environmental tax that is imposed under section 59A is excluded.
71.26(3)(hm)
(hm) Section 171 is modified so that the rules for federally taxable bonds also apply to bonds that are taxable under par.
(b) and the rules for federally tax-exempt bonds apply to bonds that are exempt from tax under this chapter.
71.26(3)(i)
(i) Section 172 is excluded and replaced by the treatment of business loss carry-forwards under sub.
(4).
71.26(3)(j)
(j) Sections 243, 244, 245, 245A, 246 and 246A are excluded and replaced by the rule that corporations may deduct from income dividends received from a corporation with respect to its common stock if the corporation receiving the dividends owns, directly or indirectly, during the entire taxable year at least 70 percent of the total combined voting stock of the payor corporation. In this paragraph, “dividends received" means gross dividends minus taxes on those dividends paid to a foreign nation and claimed as a deduction under this chapter. The same dividends may not be deducted more than once.
