I'm a US citizen with a Canadian corporation. Is GILTI still called GILTI?

It depends on the tax year. Public Law 119-21 (4 July 2025) renamed the inclusion net CFC tested income, struck the qualified business asset investment rules and the net deemed tangible income return, and cut the section 250 deduction from 50 percent to 40. All three changes apply only to tax years beginning after 31 December 2025. A 2025 year still uses GILTI with a 50 percent deduction. A 2026 year has all three changes.

What exactly did the 2025 Act change, and from when?

It rewrote the vocabulary and removed a whole mechanic, and both of those changes reach only tax years beginning after 31 December 2025. The amendment notes to the Code record them directly: the section catchline of IRC 951A was changed, and the subsection that defined the old concepts was struck out rather than amended. A struck-out definition doesn’t survive anywhere. Not every change in the Act waits for that date, though: the new section 960(d)(4) credit denial keys to foreign taxes paid or accrued after 28 June 2025, so it can reach a 2025 tax year.

“2025, Pub. L. 119-21, s. 70323(a)(3)(E)(i), substituted ‘Net CFC tested income’ for ‘Global intangible low-taxed income’ in section catchline.” IRC 951A, amendment notes

The removal is recorded in the same place and is the substantive half. Section 70323(a)(2) “redesignated subsec. (c) as (b) and struck out former subsec. (b) defining ‘global intangible low-taxed income’ and ‘net deemed tangible income return’”, and separately “redesignated subsec. (f) as (d) and struck out former subsec. (d) which related to qualified business asset investment”. So the routine return on tangible assets, the piece that used to shelter a slice of income before any inclusion, is gone from the section entirely, for years the amendment reaches.

Which years it reaches is stated on the same page, under the heading Effective Date of 2025 Amendment:

“Amendment by section 70323(a)(1), (2), (3)(B), (C), (E)(i) of Pub. L. 119-21 applicable to taxable years beginning after Dec. 31, 2025, see section 70323(c) of Pub. L. 119-21, set out as a note under section 172 of this title.” IRC 951A, effective date of 2025 amendment

Did the deduction percentage change too?

Yes, the section 250 deduction went from 50 percent to 40, and again only for tax years beginning after 31 December 2025. A tax year that began in 2025 still carries 50 percent. For 2026 the useful comparison isn’t 50 against 40 either, because prior law had already scheduled that same deduction to fall to 37.5 percent for exactly those years, and the Act struck the schedule out. Measured against the law as it actually stood, the percentage for 2026 went up. The foreign-derived companion figure moved the same way, to 33.34 percent where prior law had scheduled 21.875.

“Pub. L. 119-21, s. 70321(a)(2), substituted ‘40 percent’ for ‘50 percent’ in introductory provisions.” IRC 250, amendment notes

Four lines below that note in the same list sits the schedule the Act repealed, which is the part a before-and-after table tends to lose:

“Subsec. (a)(3). Pub. L. 119-21, s. 70321(a)(3), struck out par. (3). Text read as follows: ‘In the case of any taxable year beginning after December 31, 2025, paragraph (1) shall be applied by substituting … (A) 21.875 percent for 37.5 percent in subparagraph (A), and (B) 37.5 percent for 50 percent in subparagraph (B).’” IRC 250, amendment note on the struck subsec. (a)(3)

And the section’s own effective-date note fixes the year the 40 percent starts:

“The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2025.” IRC 250, Pub. L. 119-21 s. 70321(b) note

Provision	A tax year that began in 2025	A tax year beginning in 2026 or later
The section 951A inclusion	Global intangible low-taxed income (GILTI), defined as net CFC tested income minus the routine return	Net CFC tested income, the same figure before that subtraction, so at least as large, and larger by whatever the routine return came to
Qualified business asset investment (QBAI)	Defined in section 951A, and it drives the routine return for that year	Struck out of section 951A for tax years beginning after 31 December 2025
Net deemed tangible income return	Defined in section 951A as 10 percent of QBAI, net of certain interest expense	Struck out of section 951A for tax years beginning after 31 December 2025
Section 250 deduction on that inclusion	50 percent for a tax year beginning in 2025	40 percent for a tax year beginning in 2026 or later, where prior law had scheduled 37.5 percent
Foreign-derived companion figure	Foreign-derived intangible income, 37.5 percent	Foreign-derived deduction eligible income, 33.34 percent, where prior law had scheduled 21.875 percent

The credit side moved in both directions, on two different triggers. For tax years beginning after 31 December 2025, a domestic corporation with a section 951A inclusion is “deemed to have paid foreign income taxes equal to 90 percent of the product of” its inclusion percentage and the aggregate tested foreign income taxes of its controlled foreign corporations, under IRC 960(d)(1). That figure read 80 percent before the Act. Separately, a new section 960(d)(4) denies the credit for 10 percent of the foreign taxes on a distribution of previously taxed net CFC tested income, and that one keys to taxes paid or accrued after 28 June 2025 rather than to a tax year. This page doesn’t net those two against each other on anyone’s facts.

Do I get the 40% deduction as an individual?

Not directly, and this is the part that catches individual owners. Section 250 opens by granting the deduction to a domestic corporation. An individual US shareholder isn’t a domestic corporation, so the deduction isn’t simply available on a personal return the way it is to a company.

“In the case of a domestic corporation for any taxable year, there shall be allowed as a deduction an amount equal to the sum of … 40 percent of … the net CFC tested income amount (if any) which is included in the gross income of such domestic corporation under section 951A” IRC 250(a)(1)

That gap is why the section 962 election exists in these conversations. It lets an individual US shareholder elect to be taxed on certain inclusions at corporate rates instead of individual ones. Whether it gives you a better answer on your facts is a computation rather than a rule, and the interaction between that election and the section 250 deduction is governed by regulation rather than by the plain text quoted here, so it’s worth pricing rather than assuming.

What’s the section 962 election, in plain terms?

An election by an individual to have certain controlled-foreign-corporation inclusions taxed as though a domestic corporation had received them. The statute frames it as substituting the corporate tax computation for the ordinary individual one on those specific amounts.

“a United States shareholder who is an individual and who elects to have the provisions of this section apply for the taxable year, (1) the tax imposed under this chapter on amounts which are included in his gross income under section 951(a) shall (in lieu of the tax determined under sections 1 and 55) be an amount equal to the tax which would be imposed under section 11 if such amounts were received by a domestic corporation” IRC 962(a)

• Whether you have a Form 5471 obligation on the corporation
• What happens to a Canadian corporation when you move to the US
• Whether to wind up the corporation or keep it
• The Section 962 election, how individual CFC owners get the corporate rate and indirect foreign tax credits on Subpart F and NCTI inclusions

Two limits on this page, stated rather than glossed over. It doesn’t compute whether a section 962 election helps you, because that depends on your rates, your Canadian corporate tax and the credit mechanics. And while it names the two credit changes above, it doesn’t work through the foreign tax credit rules themselves, which are their own analysis.

What should I do next?

Start with the tax year, because it decides which rules apply. A 2025 tax year still uses GILTI, the routine return on tangible assets, and a 50 percent section 250 deduction. A 2026 tax year has all three changes, and removing the routine return changes the base, not just the rate, so get the computation run fresh. One item does not wait for the year boundary: section 960(d)(4) disallows the section 901 credit on 10 percent of the foreign taxes on a distribution of previously taxed net CFC tested income, on taxes paid or accrued after 28 June 2025.

• Net CFC tested income does not include Subpart F income, the older anti-deferral regime that captures passive and mobile income before it reaches the GILTI calculation. If the Canadian corporation earns investment income, that is the guide to read first.
• For the full picture of every provision in the 2025 Act that touches cross-border filers (estate tax, individual rates, SALT, tips, overtime, energy credits, and the rest): the One Big Beautiful Bill guide.

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.