A bill to amend the Internal Revenue Code of 1954 to place certain restrictions on the tax treatment of certain income of U.S. corporations.

Amends the Internal Revenue Code to prohibit a State or political subdivision thereof from including in a corporation's gross income for purposes of a State or local income tax, any amounts with respect to such corporation's ownership of stock or securities in a foreign corporation unless such amounts are includible in the gross income of the corporation for purposes of the Federal income tax.