H. R. 3448
IN THE HOUSE OF REPRESENTATIVES
November 16, 2011
Mr. Renacci (for himself, Mr. Carney, and Mr. Welch) introduced the following bill; which was referred to the Committee on Ways and Means
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.
This Act may be cited as the
Returning Investment to America Act of
Extension of dividends received deduction for dividends received from controlled foreign corporations by corporations increasing payroll
Subsection (f) of section 965 of the Internal Revenue Code of 1986 is amended to read as follows:
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.
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
more than 50 percent shall be substituted for
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
Deduction limited by payroll increase and property placed in service
Subsection (b) of section 965 of such Code is amended to read as follows:
Deduction limited by payroll increase
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.
For purposes of this subsection—
The term reinvestment amount means the sum of—
the employer’s payroll increase for the calendar year ending during the taxable year, plus
the basis of qualified property placed in service by the taxpayer during the taxable year.
The term payroll increase means, with respect to an employer for a calendar year, the excess (if any) of—
the aggregate amount of wages paid by such employer to all employees for such calendar year, over
aggregate amount of inflation adjusted wages paid by such employer to all employees for the preceding calendar year.
The term wages has the meaning given such term by section 3121(a) for purposes of section 3111(a).
Inflation adjusted wages
The term inflation adjusted wages means an amount equal to—
wages with respect to an employee, multiplied by
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.
The term qualified property means any tangible personal property with respect to which depreciation (or amortization in lieu of depreciation) is allowable.
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—
the employer’s payroll increase for the calendar year ending during the preceding taxable year, plus
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.
Adjustments for certain acquisitions, etc
Under regulations prescribed by the Secretary—
an employer acquires the major portion of a trade or business of another person
(hereafter in this paragraph referred to as the
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.
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
the employer furnishes the acquiring person such information as is necessary for the application of subparagraph (A),
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.
Subparagraph (B) of section 965(c)(5) of such Code is amended—
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
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.