or regulate such business and to which the statement described in subparagraph (A) is provided. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 14503. Repeal of fair market value method of interest expense apportionment (a) In general Paragraph (2) of section 864(e) is amended to read as follows: (2) Gross income and fair market value methods may not be used for interest All allocations and apportionments of interest expense shall be determined using the adjusted bases of assets rather than on the basis of the fair market value of the assets or gross income. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2017. 14504. Modification to source rules involving possessions (a) In general Subsection (b)(2) of Section 937 of the Internal Revenue Code of 1986 is amended by inserting , but only to the extent such income is attributable to an office or fixed place of business within the United States (determined under the rules of Section 864(c)(5)) before the period at the end. (b) Source rules for personal property sales Subsection (j)(3) of section 865 of the Internal Revenue Code of 1986 is amended by inserting 932, after 931, . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2018. 14505. Repeal of exclusion applicable to certain passenger aircraft operated by a foreign corporation (a) In general Section 883 is amended— (1) by striking Gross income in subsection (a)(2) and inserting Except as provided in subsection (d), gross income , and (2) by adding at the end the following new subsection: (d) Exception for aircraft operated by foreign corporations (1) In general Subsection (a)(2) shall not apply to any corporation operating a passenger airline if— (A) the corporation is organized in a foreign country the residents of which are not eligible for a reduced rate of tax or an exemption from tax under section 881 or