IN THE SENATE OF THE UNITED STATES
November 9, 2011
Mr. Lee (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
To amend the Internal Revenue Code of 1986 to modify and permanently extend the incentives to reinvest foreign earnings in the United States.
This Act may be cited as the
Congress finds the following:
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.
Multinational companies are not investing those profits domestically due to high taxes.
The United States Treasury is not receiving any revenue from those foreign holdings.
Congress should encourage the investment of repatriated monies in domestic interests.
Modification and permanent extension of the incentives to reinvest foreign earnings in the United States
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
Permanent extension To elect repatriation
Subsection (f) of section 965 of the Internal Revenue Code of 1986 is amended to read as follows:
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.
Repatriation includes current and accumulated foreign earnings
Paragraph (1) of section 965(b) of the Internal Revenue Code of 1986 is amended to read as follows:
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.
Section 965(b) of such Code is amended by striking paragraphs (2) and (4) and by redesignating paragraph (3) as paragraph (2).
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.
Paragraph (3) of section 965(c) of such Code, as redesignated by subparagraph (B), is amended to read as follows:
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.
The heading for
section 965 of the Internal Revenue Code of 1986 is amended by striking
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
The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.