It was abolished when in late 2004, US President George W Bush signed the American Jobs Creation Act of 2004 which phased out the extraterritorial income (ETI) exclusion in favor of broader tax relief.
Both corporate and non-corporate taxpayers who have qualifying transactions may now be required to file Form 8873.
[1] The FSC Repeal and Extraterritorial Income Exclusion Act of 2000[2] effectively 'repatriated' the FSC tax break and extended it to all types of entities with qualifying foreign sales, including S corporations and Limited liability companies previously excluded.
Those features caused the new regime to continue to resemble an export tax subsidy.
The European Union (EU) did not accept the new legislation as conforming with WTO rules.