### Question
What does effectively connected income mean?


### Answer
**Effectively connected income** has the following meaning in *26 U.S.C. § 245*:

> any income which is effectively connected (or treated as effectively connected) with the conduct of a trade or business in the United States and is subject to tax under this chapter

#### Citation:
  - *26 U.S.C. § 245*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VIII-SPECIAL DEDUCTIONS FOR CORPORATIONS**

