                         T.C. Memo. 2010-197



                       UNITED STATES TAX COURT



  ENTERGY CORPORATION & AFFILIATED SUBSIDIARIES, Petitioner v.
          COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No. 25132-06.              Filed September 9, 2010.



     Stephen D. Gardner and William H. O’Brien, for petitioner.

     Michael C. Prindible and Melissa D. Arndt, for respondent.



                         MEMORANDUM OPINION


     HALPERN, Judge:    Entergy Corp. (petitioner) is the common

parent of an affiliated group of corporations (the group) making

a consolidated return of income.    By notice of deficiency

respondent determined deficiencies of $17,341,254 and $61,729,798

in the group’s Federal income tax for its 1997 and 1998 taxable

(calendar) years, respectively.    The only issue remaining for
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decision is whether respondent properly denied a foreign tax

credit for the United Kingdom (U.K.) windfall tax paid by

petitioner’s indirect U.K. subsidiary.1   That issue is identical

to the issue in PPL Corp. & Subs. v. Commissioner, 135 T.C. ___

(2010), which we also decide today.    Moreover, the material facts

with respect to that issue are identical to the corresponding

facts in PPL.

     Unless otherwise stated, all section references are to the

Internal Revenue Code in effect for 1997 and 1998.

     The parties have stipulated that, in 1997, petitioner’s

indirect U.K. subsidiary, London Electricity plc, became liable

for the U.K. windfall tax, a “one-off” (i.e., one-time) tax of

£139,962,622, which it timely paid in two equal installments on

December 2, 1997 and 1998.   The sole issue is whether the U.K.

windfall tax constituted an income or excess profits tax under

section 901(b)(1), thereby entitling petitioner to a foreign tax

credit under section 901(a) for London Electricity’s payment of

that tax.   In PPL, we answer that question in the affirmative.

Respondent makes no argument that leads us to believe we have




     1
      We decided a separate issue in Entergy Corp. v.
Commissioner, T.C. Memo. 2010-166.
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erred in PPL.   We rely on PPL in holding for petitioner on the

windfall tax issue.


                                            An appropriate order and

                                       decision will be issued.
