[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3364 Placed on Calendar Senate (PCS)]
Calendar No. 442
112th CONGRESS
2d Session
S. 3364
To provide an incentive for businesses to bring jobs back to America.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 9, 2012
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 time
July 10, 2012
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To provide an incentive for businesses to bring jobs back to America.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bring Jobs Home Act''.
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:
``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).
``(b) Eligible Insourcing Expenses.--For purposes of this section--
``(1) In general.--The term `eligible insourcing expenses'
means--
``(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, and
``(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,
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.
``(2) Eligible expenses.--The term `eligible expenses'
means--
``(A) any amount for which a deduction is allowed
to the taxpayer under section 162, and
``(B) permit and license fees, lease brokerage
fees, equipment installation costs, and, to the extent
provided by the Secretary, other similar expenses.
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.
``(3) Business unit.--The term `business unit' means--
``(A) any trade or business, and
``(B) any line of business, or functional unit,
which is part of any trade or business.
``(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).
``(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).
``(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.
``(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.
``(d) Credit Allowed Upon Completion of Insourcing Plan.--
``(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.
``(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).
``(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).
``(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.''.
(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:
``(37) the insourcing expenses credit determined under
section 45S(a).''.
(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:
``Sec. 45S. Credit for insourcing expenses.''.
(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.
(e) Application to United States Possessions.--
(1) Payments to possessions.--
(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.
(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.
(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--
(A) to whom a credit is allowed against taxes
imposed by the possession by reason of such section, or
(B) who is eligible for a payment under a plan
described in paragraph (1)(B).
(3) Definitions and special rules.--
(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.
(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.
(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).
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:
``SEC. 280I. OUTSOURCING EXPENSES.
``(a) In General.--No deduction otherwise allowable under this
chapter shall be allowed for any specified outsourcing expense.
``(b) Specified Outsourcing Expense.--For purposes of this
section--
``(1) In general.--The term `specified outsourcing expense'
means--
``(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, and
``(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,
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.
``(2) Application of certain definitions and rules.--
``(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).
``(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.
``(c) Special Rules.--
``(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.
``(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).
``(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.''.
(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:
``(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)).''.
(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:
``Sec. 280I. Outsourcing expenses.''.
(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.
Calendar No. 442
112th CONGRESS
2d Session
S. 3364
_______________________________________________________________________
A BILL
To provide an incentive for businesses to bring jobs back to America.
_______________________________________________________________________
July 10, 2012
Read the second time and placed on the calendar