S 3364 PCSCommentsClose CommentsPermalink

Calendar No. 442CommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

S. 3364CommentsClose CommentsPermalink

To provide an incentive for businesses to bring jobs back to America.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

July 9, 2012CommentsClose CommentsPermalink

Ms. STABENOW (for herself, Mr. COONS, Mr. SCHUMER, Mr. BROWN of Ohio, Mr. DURBIN, Mr. MERKLEY, Mr. WHITEHOUSE, and Mrs. GILLIBRAND) introduced the following bill; which was read the first timeCommentsClose CommentsPermalink

July 10, 2012CommentsClose CommentsPermalink

Read the second time and placed on the calendarCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To provide an incentive for businesses to bring jobs back to America.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 ‘Bring Jobs Home Act’.CommentsClose CommentsPermalink

SEC. 2. CREDIT FOR INSOURCING EXPENSES.

(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 45S. CREDIT FOR INSOURCING EXPENSES.

‘(a) In General- For purposes of section 38, the insourcing expenses credit for any taxable year is an amount equal to 20 percent of the eligible insourcing expenses of the taxpayer which are taken into account in such taxable year under subsection (d).CommentsClose CommentsPermalink





‘(b) Eligible Insourcing Expenses- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘eligible insourcing expenses’ means--CommentsClose CommentsPermalink





‘(A) eligible expenses paid or incurred by the taxpayer in connection with the elimination of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located outside the United States, andCommentsClose CommentsPermalink





‘(B) eligible expenses paid or incurred by the taxpayer in connection with the establishment of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located within the United States,CommentsClose CommentsPermalink





if such establishment constitutes the relocation of the business unit so eliminated. For purposes of the preceding sentence, a relocation shall not be treated as failing to occur merely because such elimination occurs in a different taxable year than such establishment.CommentsClose CommentsPermalink





‘(2) ELIGIBLE EXPENSES- The term ‘eligible expenses’ means--CommentsClose CommentsPermalink





‘(A) any amount for which a deduction is allowed to the taxpayer under section 162, andCommentsClose CommentsPermalink





‘(B) permit and license fees, lease brokerage fees, equipment installation costs, and, to the extent provided by the Secretary, other similar expenses.CommentsClose CommentsPermalink





Such term does not include any compensation which is paid or incurred in connection with severance from employment and, to the extent provided by the Secretary, any similar amount.CommentsClose CommentsPermalink





‘(3) BUSINESS UNIT- The term ‘business unit’ means--CommentsClose CommentsPermalink





‘(A) any trade or business, andCommentsClose CommentsPermalink





‘(B) any line of business, or functional unit, which is part of any trade or business.CommentsClose CommentsPermalink





‘(4) EXPANDED AFFILIATED GROUP- The term ‘expanded affiliated group’ means an affiliated group as defined in section 1504(a), determined without regard to section 1504(b)(3) and by substituting ‘more than 50 percent’ for ‘at least 80 percent’ each place it appears in section 1504(a). A partnership or any other entity (other than a corporation) shall be treated as a member of an expanded affiliated group if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this paragraph).CommentsClose CommentsPermalink





‘(5) EXPENSES MUST BE PURSUANT TO INSOURCING PLAN- Amounts shall be taken into account under paragraph (1) only to the extent that such amounts are paid or incurred pursuant to a written plan to carry out the relocation described in paragraph (1).CommentsClose CommentsPermalink





‘(6) OPERATING EXPENSES NOT TAKEN INTO ACCOUNT- Any amount paid or incurred in connection with the on-going operation of a business unit shall not be treated as an amount paid or incurred in connection with the establishment or elimination of such business unit.CommentsClose CommentsPermalink





‘(c) Increased Domestic Employment Requirement- No credit shall be allowed under this section unless the number of full-time equivalent employees of the taxpayer for the taxable year for which the credit is claimed exceeds the number of full-time equivalent employees of the taxpayer for the last taxable year ending before the first taxable year in which such eligible insourcing expenses were paid or incurred. For purposes of this subsection, full-time equivalent employees has the meaning given such term under section 45R(d) (and the applicable rules of section 45R(e)). All employers treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer for purposes of this subsection.CommentsClose CommentsPermalink





‘(d) Credit Allowed Upon Completion of Insourcing Plan-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Except as provided in paragraph (2), eligible insourcing expenses shall be taken into account under subsection (a) in the taxable year during which the plan described in subsection (b)(5) has been completed and all eligible insourcing expenses pursuant to such plan have been paid or incurred.CommentsClose CommentsPermalink





‘(2) ELECTION TO APPLY EMPLOYMENT TEST AND CLAIM CREDIT IN FIRST FULL TAXABLE YEAR AFTER COMPLETION OF PLAN- If the taxpayer elects the application of this paragraph, eligible insourcing expenses shall be taken into account under subsection (a) in the first taxable year after the taxable year described in paragraph (1).CommentsClose CommentsPermalink





‘(e) Possessions Treated as Part of the United States- For purposes of this section, the term ‘United States’ shall be treated as including each possession of the United States (including the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands).CommentsClose CommentsPermalink





‘(f) Regulations- The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.’.CommentsClose CommentsPermalink





(b) Credit to Be Part of General Business Credit- Subsection (b) of section 38 of such Code is amended by striking ‘plus’ at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting ‘, plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(37) the insourcing expenses credit determined under section 45S(a).’.CommentsClose CommentsPermalink





(c) Clerical Amendment- The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 45S. Credit for insourcing expenses.’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.CommentsClose CommentsPermalink





(e) Application to United States Possessions-CommentsClose CommentsPermalink





(1) PAYMENTS TO POSSESSIONS-CommentsClose CommentsPermalink





(A) MIRROR CODE POSSESSIONS- The Secretary of the Treasury shall make periodic payments to each possession of the United States with a mirror code tax system in an amount equal to the loss to that possession by reason of section 45S of the Internal Revenue Code of 1986. Such amount shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.CommentsClose CommentsPermalink





(B) OTHER POSSESSIONS- The Secretary of the Treasury shall make annual payments to each possession of the United States which does not have a mirror code tax system in an amount estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of section 45S of such Code if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payment to the residents of such possession.CommentsClose CommentsPermalink





(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED STATES INCOME TAXES- No credit shall be allowed against United States income taxes under section 45S of such Code to any person--CommentsClose CommentsPermalink





(A) to whom a credit is allowed against taxes imposed by the possession by reason of such section, orCommentsClose CommentsPermalink





(B) who is eligible for a payment under a plan described in paragraph (1)(B).CommentsClose CommentsPermalink





(3) DEFINITIONS AND SPECIAL RULES-CommentsClose CommentsPermalink





(A) POSSESSIONS OF THE UNITED STATES- For purposes of this section, the term ‘possession of the United States’ includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands.CommentsClose CommentsPermalink





(B) MIRROR CODE TAX SYSTEM- For purposes of this section, the term ‘mirror code tax system’ means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.CommentsClose CommentsPermalink





(C) TREATMENT OF PAYMENTS- For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from sections referred to in such section 1324(b)(2).CommentsClose CommentsPermalink

SEC. 3. DENIAL OF DEDUCTION FOR OUTSOURCING EXPENSES.

(a) In General- Part IX of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 280I. OUTSOURCING EXPENSES.

‘(a) In General- No deduction otherwise allowable under this chapter shall be allowed for any specified outsourcing expense.CommentsClose CommentsPermalink





‘(b) Specified Outsourcing Expense- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘specified outsourcing expense’ means--CommentsClose CommentsPermalink





‘(A) any eligible expense paid or incurred by the taxpayer in connection with the elimination of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located within the United States, andCommentsClose CommentsPermalink





‘(B) any eligible expense paid or incurred by the taxpayer in connection with the establishment of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located outside the United States,CommentsClose CommentsPermalink





if such establishment constitutes the relocation of the business unit so eliminated. For purposes of the preceding sentence, a relocation shall not be treated as failing to occur merely because such elimination occurs in a different taxable year than such establishment.CommentsClose CommentsPermalink





‘(2) APPLICATION OF CERTAIN DEFINITIONS AND RULES-CommentsClose CommentsPermalink





‘(A) DEFINITIONS- For purposes of this section, the terms ‘eligible expenses’, ‘business unit’, and ‘expanded affiliated group’ shall have the respective meanings given such terms by section 45S(b).CommentsClose CommentsPermalink





‘(B) OPERATING EXPENSES NOT TAKEN INTO ACCOUNT- A rule similar to the rule of section 45S(b)(6) shall apply for purposes of this section.CommentsClose CommentsPermalink





‘(c) Special Rules-CommentsClose CommentsPermalink





‘(1) APPLICATION TO DEDUCTIONS FOR DEPRECIATION AND AMORTIZATION- In the case of any portion of a specified outsourcing expense which is not deductible in the taxable year in which paid or incurred, such portion shall neither be chargeable to capital account nor amortizable.CommentsClose CommentsPermalink





‘(2) POSSESSIONS TREATED AS PART OF THE UNITED STATES- For purposes of this section, the term ‘United States’ shall be treated as including each possession of the United States (including the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands).CommentsClose CommentsPermalink





‘(d) Regulations- The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations which provide (or create a rebuttable presumption) that certain establishments of business units outside the United States will be treated as relocations (based on timing or such other factors as the Secretary may provide) of business units eliminated within the United States.’.CommentsClose CommentsPermalink





(b) Limitation on Subpart F Income of Controlled Foreign Corporations Determined Without Regard to Specified Outsourcing Expenses- Subsection (c) of section 952 of such Code is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) EARNINGS AND PROFITS DETERMINED WITHOUT REGARD TO SPECIFIED OUTSOURCING EXPENSES- For purposes of this subsection, earnings and profits of any controlled foreign corporation shall be determined without regard to any specified outsourcing expense (as defined in section 280I(b)).’.CommentsClose CommentsPermalink





(c) Clerical Amendment- The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 280I. Outsourcing expenses.’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.CommentsClose CommentsPermalink

Calendar No. 442CommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

S. 3364CommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To provide an incentive for businesses to bring jobs back to America.CommentsClose CommentsPermalink

July 10, 2012CommentsClose CommentsPermalink

Read the second time and placed on the calendarCommentsClose CommentsPermalink