Sec. 70321. Modification of deduction for foreign-derived deduction eligible income and net CFC tested income

(a) In general.—Section 250(a) is amended—

(1) by striking “37.5 percent” in paragraph (1)(A) and inserting “33.34 percent”,

(2) by striking “50 percent” in paragraph (1)(B) and inserting “40 percent”, and

(3) by striking paragraph (3).

(b) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.