The US Court of Appeals for the Fifth Circuit has allowed a US foreign tax credit (FTC) for the windfall tax imposed in the United Kingdom. Entergy Corporation and Affiliated Subsidiaries v. Commissioner of Internal Revenue, Docket No. 10-60988 (5 June 2012). In so holding, the Court of Appeals for the Fifth Circuit has reached a decision contrary to that of the Third Circuit in a similar case.
The present case involved a US corporation that owned one of the UK util…