H.R. 3448 (112th): Returning Investment to America Act of 2011

112th Congress, 2011–2013. Text as of Nov 16, 2011 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

1st Session

H. R. 3448

IN THE HOUSE OF REPRESENTATIVES

November 16, 2011

(for himself, Mr. Carney, and Mr. Welch) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to extend the deduction for dividends received from a controlled foreign corporation by any corporation that has increased wages or placed property in service for the year.

1.

Short title

This Act may be cited as the Returning Investment to America Act of 2011.

2.

Extension of dividends received deduction for dividends received from controlled foreign corporations by corporations increasing payroll

(a)

Extension

Subsection (f) of section 965 of the Internal Revenue Code of 1986 is amended to read as follows:

(f)

Election

(1)

In general

An election under this section may be made for any taxable year beginning before December 31, 2012, and shall be made at such time and in such manner as the Secretary may prescribe, and, once made, may be revoked only with the consent of the Secretary.

(2)

Controlled groups

If an election under this section is made by a member of a controlled group of corporations (within the meaning of section 1563(a), except that more than 50 percent shall be substituted for at least 80 percent each place it appears therein) then, except as otherwise provided by the Secretary, such election shall apply to all members of such controlled group.

.

(b)

Deduction limited by payroll increase and property placed in service

Subsection (b) of section 965 of such Code is amended to read as follows:

(b)

Deduction limited by payroll increase

(1)

In general

The amount of dividends taken into account under subsection (a) for any taxable year shall not exceed an amount equal to the reinvestment amount of such employer (if any) for such taxable year.

(2)

Reinvestment amount

For purposes of this subsection—

(A)

In general

The term reinvestment amount means the sum of—

(i)

the employer’s payroll increase for the calendar year ending during the taxable year, plus

(ii)

the basis of qualified property placed in service by the taxpayer during the taxable year.

(B)

Payroll increase

(i)

In general

The term payroll increase means, with respect to an employer for a calendar year, the excess (if any) of—

(I)

the aggregate amount of wages paid by such employer to all employees for such calendar year, over

(II)

aggregate amount of inflation adjusted wages paid by such employer to all employees for the preceding calendar year.

(ii)

Wages

The term wages has the meaning given such term by section 3121(a) for purposes of section 3111(a).

(iii)

Inflation adjusted wages

The term inflation adjusted wages means an amount equal to—

(I)

wages with respect to an employee, multiplied by

(II)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year for which the reduction in deposits under this section is being determined occurs, determined by substituting calendar year 2010 for calendar year 1992 in subparagraph (B) thereof.

(C)

Qualified property

The term qualified property means any tangible personal property with respect to which depreciation (or amortization in lieu of depreciation) is allowable.

(3)

Bonus reinvestment amount for 2012

In the case of any taxable year beginning in 2012, the taxpayer may elect to increase the reinvestment amount for such taxable year by an amount equal to—

(A)

the employer’s payroll increase for the calendar year ending during the preceding taxable year, plus

(B)

the basis of qualified property placed in service by the taxpayer during the preceding taxable year after the mid-point of such preceding taxable year.

(4)

Adjustments for certain acquisitions, etc

Under regulations prescribed by the Secretary—

(A)

Acquisitions

If an employer acquires the major portion of a trade or business of another person (hereafter in this paragraph referred to as the predecessor) or the major portion of a separate unit of a trade or business of a predecessor, then, for purposes of applying this section for any calendar year ending after such acquisition, the amount of wages or compensation deemed paid by the employer during periods before such acquisition shall be increased by so much of such wages or compensation paid by the predecessor with respect to the acquired trade or business as is attributable to the portion of such trade or business acquired by the employer.

(B)

Dispositions

If—

(i)

an employer disposes of the major portion of any trade or business of the employer or the major portion of a separate unit of a trade or business of the employer in a transaction to which subparagraph (A) applies, and

(ii)

the employer furnishes the acquiring person such information as is necessary for the application of subparagraph (A),

then, for purposes of applying this section for any calendar year ending after such disposition, the amount of wages or compensation deemed paid by the employer during periods before such disposition shall be reduced by so much of such wages as is attributable to such trade or business or separate unit.

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(c)

Conforming amendments

(1)

Subsection (c) of section 965 of such Code is amended by striking paragraphs (1) and (2) and by redesignating paragraphs (3), (4), and (5) as paragraphs (1), (2), and (3), respectively.

(2)

Subparagraph (B) of section 965(c)(5) of such Code is amended—

(A)

by striking shall be limited to one $5,000,000,000 amount in subsection (b)(1)(A) and inserting shall be treated as one employer for purposes of determining the amount of any limitation under subsection (b).

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.