HR 1874 IHCommentsClose CommentsPermalink

To provide Federal contracting preferences for, and a reduction in the rate of income tax imposed on, Patriot corporations, and for other purposes.CommentsClose CommentsPermalink

April 2, 2009CommentsClose CommentsPermalink

Ms. SCHAKOWSKY (for herself, Mr. HARE, Mr. HALL of New York, Mr. MICHAUD, Ms. SUTTON, Mr. MASSA, and Ms. WOOLSEY) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To provide Federal contracting preferences for, and a reduction in the rate of income tax imposed on, Patriot corporations, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Patriot Corporations of America Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. FEDERAL CONTRACTING PREFERENCE FOR PATRIOT CORPORATIONS.

After December 31, 2009, in the evaluation of bids or proposals for a contract for the procurement of goods or services, the Federal Government shall provide a preference to any entity that is a Patriot corporation (as defined in section 11(e) of the Internal Revenue Code of 1986, as added by section 3 of this Act), unless the award of the contract to such entity would jeopardize the national security interests of the United States.CommentsClose CommentsPermalink

SEC. 3. REDUCTION IN RATE OF INCOME TAX FOR PATRIOT CORPORATIONS.

(a) In General- Section 11 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(e) Patriot Corporations-CommentsClose CommentsPermalink





‘(1) RATE REDUCTION FOR PATRIOT CORPORATIONS- In the case of a Patriot corporation, the amount of the tax imposed under subsection (a) (determined without regard to this paragraph) shall be reduced (but not below zero) by an amount equal to 5 percent of the taxable income of such corporation.CommentsClose CommentsPermalink





‘(2) PATRIOT CORPORATION DEFINED- For purposes of this subsection--CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘Patriot corporation’ means, with respect to any taxable year, any corporation which is certified by the Secretary as meeting the requirements of subparagraph (B) for such taxable and the preceding taxable year.CommentsClose CommentsPermalink





‘(B) REQUIREMENTS- A corporation meets the requirements of this subparagraph, with respect to any taxable year, if such corporation--CommentsClose CommentsPermalink





‘(i) produces in the United States at least 90 percent of the goods and services sold by such corporation during such taxable year,CommentsClose CommentsPermalink





‘(ii) does not provide compensation to any management personnel of such corporation at a level of compensation which exceeds 10,000 percent of the level of compensation of the full-time employee of such corporation with the lowest level of compensation during such taxable year,CommentsClose CommentsPermalink





‘(iii) conducts at least 50 percent of the research and development conducted by such corporation during such taxable year (determined on the basis of cost) in the United States,CommentsClose CommentsPermalink





‘(iv) has contributed at least 5 percent of wages paid by the corporation during the taxable year to a portable pension fund for the benefit of employees of the corporation,CommentsClose CommentsPermalink





‘(v) has paid at least 70 percent of the cost of a standardized health insurance plan for the benefit of employees of the corporation during such taxable year,CommentsClose CommentsPermalink





‘(vi) has maintained at all times during such taxable year neutrality in employee organizing drives and has in effect a policy to that effect,CommentsClose CommentsPermalink





‘(vii) provides full differential salary and insurance benefits for all National Guard and Reserve employees who are called to active duty,CommentsClose CommentsPermalink





‘(viii) has not been (at any time during such taxable year) in violation of appropriate Federal regulations including those related to the environment, workplace safety, labor relations, and consumer protections, as determined by the Secretary, andCommentsClose CommentsPermalink





‘(ix) has not been in violation of any other regulations specified by the Secretary.CommentsClose CommentsPermalink





‘(C) CERTIFICATION PROCESS- Not later than 90 days after the date of the enactment of this subsection, the Secretary shall establish an application and certification process to annually certify corporations as Patriot corporations. Such certifications shall be made at such time and on the basis of such materials as the Secretary determines appropriate.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2009.CommentsClose CommentsPermalink





(c) Certification Allowed for Year Preceding Effective Date of Rate Reduction- For purposes of section 11(e) of the Internal Revenue Code of 1986, as added by this section, the Secretary may certify a corporation as a Patriot corporation for the last taxable year of the corporation beginning on or before December 31, 2009, if the corporation meets the requirements of paragraph (2)(B) of such section for such taxable year.CommentsClose CommentsPermalink

SEC. 4. TAX AVOIDANCE FOREIGN CORPORATIONS SUBJECT TO UNITED STATES INCOME TAX.

(a) In General- Paragraph (4) of section 7701(a) of the Internal Revenue Code of 1986 (defining domestic) is amended to read as follows:CommentsClose CommentsPermalink





‘(4) DOMESTIC-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Except as provided in subparagraph (B), the term ‘domestic’ when applied to a corporation or partnership means created or organized in the United States or under the law of the United States or of any State unless, in the case of a partnership, the Secretary provides otherwise by regulations.CommentsClose CommentsPermalink





‘(B) TAX AVOIDANCE FOREIGN CORPORATIONS TREATED AS DOMESTIC- Any corporation which would (but for this subparagraph) be treated as a foreign corporation shall be treated as a domestic corporation if the Secretary determines that such corporation was created or organized as a foreign corporation (instead of as a domestic corporation) principally for the purpose of avoiding being treated as a domestic corporation under this title.’.CommentsClose CommentsPermalink





(b) Effective Dates- The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 5. REDUCTION IN BENEFIT OF RATE REDUCTION FOR FAMILIES WITH INCOMES OVER $1,000,000.

(a) General Rule- Section 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(j) Reduction in Benefit of Rate Reduction for Families With Incomes Over $1,000,000-CommentsClose CommentsPermalink





‘(1) IN GENERAL- If the adjusted gross income of a taxpayer exceeds the threshold amount, the tax imposed by this section (determined without regard to this subsection) shall be increased by an amount equal to 4.6 percent of so much of the adjusted gross income as exceeds the threshold amount.CommentsClose CommentsPermalink





‘(2) THRESHOLD AMOUNTS- For purposes of this subsection, the term ‘threshold amount’ means--CommentsClose CommentsPermalink





‘(A) $1,000,000 in the case of a joint return, andCommentsClose CommentsPermalink





‘(B) $500,000 in the case of any other return.CommentsClose CommentsPermalink





‘(3) SPECIAL RULE- For purposes of section 55, the amount of the regular tax shall be determined without regard to this subsection.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink





(c) Application of EGTRRA Sunset- The amendment made by this section shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 to the same extent and in the same manner as section 101 of such Act.CommentsClose CommentsPermalink





(d) Section 15 Not To Apply- The amendment made by subsection (a) shall not be treated as a change in a rate of tax for purposes of section 15 of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink