H.R.1834 - Freedom to Invest Act of 2011
To amend the Internal Revenue Code of 1986 to allow a temporary dividends received deduction for 2011 or 2012.
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Mr. BRADY of Texas (for himself, Mr. MATHESON, Mr. DOLD, Mr. COOPER, Mr. NUNES, and Mr. POLIS) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink
SECTION 1. SHORT TITLE.
SEC. 2. TEMPORARY DIVIDENDS RECEIVED DEDUCTION ALLOWED FOR 2011 OR 2012.
‘(1) IN GENERAL- The amount of dividends taken into account under subsection (a) shall not exceed the sum of the current and accumulated earnings and profits described in section 959(c)(3) for the year a deduction is claimed under subsection (a), without diminution by reason of any distributions made during the election year, for all controlled foreign corporations of the United States shareholder.’.CommentsClose CommentsPermalink
‘(A) IN GENERAL- If, during the period consisting of the calendar month in which the taxpayer first receives a distribution described in subsection (a)(1) and the succeeding 23 calendar months, the taxpayer does not maintain an average employment level at least equal to the taxpayer’s prior average employment, an additional amount equal to $25,000 multiplied by the number of employees by which the taxpayer’s average employment level during such period falls below the prior average employment (but not exceeding the aggregate amount allowed as a deduction pursuant to subsection (a)(1)) shall be taken into income by the taxpayer during the taxable year that includes the final day of such period.CommentsClose CommentsPermalink
‘(B) AVERAGE EMPLOYMENT LEVEL- For purposes of this paragraph, the taxpayer’s average employment level for a period shall be the average number of full-time United States employees of the taxpayer, measured at the end of each month during the period.CommentsClose CommentsPermalink
‘(C) PRIOR AVERAGE EMPLOYMENT- For purposes of this paragraph, the taxpayer’s ‘prior average employment’ shall be the average number of full-time United States employees of the taxpayer during the period consisting of the 24 calendar months immediately preceding the calendar month in which the taxpayer first receives a distribution described in subsection (a)(1).CommentsClose CommentsPermalink
‘(i) IN GENERAL- The term ‘full-time United States employee’ means an individual who provides services in the United States as a full-time employee, based on the employer’s standards and practices; except that regardless of the employer’s classification of the employee, an employee whose normal schedule is 40 hours or more per week is considered a full-time employee.CommentsClose CommentsPermalink
‘(I) any individual who was an employee, on the date of acquisition, of any trade or business acquired by the taxpayer during the 24-month period referred to in subparagraph (A); andCommentsClose CommentsPermalink
‘(II) any individual who was an employee of any trade or business disposed of by the taxpayer during the 24-month period referred to in subparagraph (A) or the 24-month period referred to in subparagraph (C).CommentsClose CommentsPermalink
‘(E) AGGREGATION RULES- In determining the taxpayer’s average employment level and prior average employment, all domestic members of a controlled group shall be treated as a single taxpayer.’.CommentsClose CommentsPermalink
(e) Base Period- Paragraph (2) of subsection 965(c) of such Code is amended by inserting at the end of subparagraph (A) the following flush sentence: ‘For purposes of this paragraph, taxable years shall not include any year for which an election under section 965 was in effect.’.CommentsClose CommentsPermalink
(1) Subsection 965(c) of such Code, as amended by subsection (e), is amended by striking paragraph (1) and redesignating paragraphs (2), (3), (4), and (5) as paragraphs (1), (2), (3), and (4), respectively.CommentsClose CommentsPermalink
‘(4) CONTROLLED GROUPS- All United States shareholders which are members of an affiliated group filing a consolidated return under section 1501 shall be treated as one United States shareholder.’.CommentsClose CommentsPermalink