---
type: "LegalText"
title: "26 U.S.C. § 997"
description: "Special subchapter C rules"
jurisdiction: "us"
corpus: "united_states_code"
kind: "code_section"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
chapter_number: "1"
chapter_name: "NORMAL TAXES AND SURTAXES"
section: "997"
citation: "26 U.S.C. § 997"
status: "current"
release_point: "119-100"
release_date: "2026-06-26"
source: "official"
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
source_identifier: "/us/usc/t26/s997"
source_file: "data/legal/raw/us/code/title-26/usc26.xml"
source_hash: "ec1000fd626499b62be3fa6cf7d341bb097f0d80ccceeacccafd4519e5f2646c"
raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
text_hash: "f357537bcde64262905a5352d8d4a527cb5d7db2afbf7e6ffb05dd306d7c9ce3"
retrieved_at: "2026-07-04"
confidence: "official"
tags: ["legal", "us-code"]
---

# 26 U.S.C. § 997 - Special subchapter C rules

## Text

For purposes of applying the provisions of subchapter C of chapter 1, any distribution in property to a corporation by a DISC or former DISC which is made out of previously taxed income or accumulated DISC income shall—

(1) be treated as a distribution in the same amount as if such distribution of property were made to an individual, and

(2) have a basis, in the hands of the recipient corporation, equal to the amount determined under paragraph (1).

(Added Pub. L. 92–178, title V, § 501, Dec. 10, 1971, 85 Stat. 549.)