< Back to S. 1837 (112th Congress, 2011–2013)

Text of the Rebuilding America Act

This bill was introduced on November 9, 2011, in a previous session of Congress, but was not enacted. The text of the bill below is as of Nov 9, 2011 (Introduced).

Source: GPO

II

112th CONGRESS

1st Session

S. 1837

IN THE SENATE OF THE UNITED STATES

November 9, 2011

(for himself, Mr. Crapo, Mr. DeMint, Mr. Paul, Mr. Risch, and Mr. Blunt) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to modify and permanently extend the incentives to reinvest foreign earnings in the United States.

1.

Short title

This Act may be cited as the Rebuilding America Act.

2.

Findings

Congress finds the following:

(1)

United States multinational companies have an estimated $2,300,000,000,000 held in foreign accounts that could be used to invest in domestic economic recovery and employment growth.

(2)

Multinational companies are not investing those profits domestically due to high taxes.

(3)

The United States Treasury is not receiving any revenue from those foreign holdings.

(4)

Congress should encourage the investment of repatriated monies in domestic interests.

3.

Modification and permanent extension of the incentives to reinvest foreign earnings in the United States

(a)

Repatriation subject to 5 percent tax rate

Subsection (a)(1) of section 965 of the Internal Revenue Code of 1986 is amended by striking 85 percent and inserting 85.7 percent.

(b)

Permanent extension To elect repatriation

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

(f)

Election

The taxpayer may elect to apply this section to any taxable year only if made on or before the due date (including extensions) for filing the return of tax for such taxable year.

.

(c)

Repatriation includes current and accumulated foreign earnings

(1)

In general

Paragraph (1) of section 965(b) of the Internal Revenue Code of 1986 is amended to read as follows:

(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.

.

(2)

Conforming amendments

(A)

Section 965(b) of such Code is amended by striking paragraphs (2) and (4) and by redesignating paragraph (3) as paragraph (2).

(B)

Section 965(c) 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.

(C)

Paragraph (3) of section 965(c) of such Code, as redesignated by subparagraph (B), is amended to read as follows:

(3)

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.

.

(d)

Clerical amendments

(1)

The heading for section 965 of the Internal Revenue Code of 1986 is amended by striking Temporary.

(2)

The table of sections for subpart F of part III of subchapter N of chapter 1 of such Code is amended by striking Temporary dividends and inserting Dividends.

(e)

Effective date

The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.