. (f) Effective date (1) In general The amendments made by this section (other than subsection (c) thereof) shall apply to dividends received by a corporation after December 31, 2018, in taxable years ending after such date. (2) Limitation The amendments made by section 102(c) shall apply to taxable years beginning after December 31, 2018. B Dividends paid deduction for domestic corporations 13011. Dividends paid deduction (a) General rule Part VIII of subchapter B of chapter 1 is amended by inserting after section 241 the following: B Dividends paid deduction Sec. 242. Dividends paid deduction. 242. Dividends paid deduction (a) Allowance of deduction In the case of an eligible corporation, there shall be allowed as a deduction an amount equal to zero percent of the aggregate amount of applicable dividends paid by the corporation during the taxable year. (b) Applicable Dividend For purposes of this section— (1) In general The term applicable dividend means, with respect to an eligible corporation, any distribution by the eligible corporation during a taxable year which is— (A) treated as a dividend for purposes of this chapter, and (B) paid out of its applicable earnings and profits. (2) Ordering rule for dividend payments For purposes of paragraph (1)(B), dividends shall be treated as paid— (A) first, out of exempt earnings and profits, (B) second, out of applicable earnings and profits, and (C) finally, out of earnings and profits not described in subparagraph (A) or (B). (3) Coordination with other deductions Such term shall not include— (A) any amount allowed as a deduction under section 591 (relating to deduction for dividends paid by mutual savings banks, etc.), and (B) any dividend described in paragraph (2) of section 404(k) (relating to deduction for dividends paid on certain employer securities). (4) Election to treat certain distributions paid after close of year as paid during year For purposes of this title, an eligible corporation may elect on its return of tax for any taxable year to treat any