,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #ajhf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #ab1 #bjac ,mr4  
,cicill9e 7= himself1 ,mr4 ,cony]s1 ,mr4
 ,ellison1 ,mr4 ,grijalva1 & ,ms4       
,%ea-,port]7 introduc$ ! foll[+ bill2   
:i* 0 ref]r$ to ! ,committee on ,ways & 
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to provide = !    
taxation ( income ( controll$ =eign     
corporations attributable to import$    
prop]ty4  #a4 ,%ort title ,?is ,act may 
be cit$ z ! ,(f%or+ ,prev5tion ,act4    
#b4 ,taxation ( income ( controll$ =eign
 corporations attributable to import$   
prop]ty  7a7 ,g5]al ,rule ,subsection   
7a7 ( section #ied ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ ! p]iod 
at ! end ( p>agraph 7#e7 & ins]t+ 1 &1  
by r$esignat+ p>agraph 7#e7 z p>agraph  
7#d71 & by add+ at ! end ! foll[+ new   
p>agraph3  7#e7 import$ prop]ty income =
 ! taxable ye> 7det]m9$ "u subsection   
7j7 & r$uc$ z provid$ 9 subsection      
7b77#e774  4  7b7 ,def9ition ( ,import$ 

,prop]ty ,income ,section #ied ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new           
subsection3  7j7 ,import$ ,prop]ty      
,income  7#a7 ,9 g5]al ,= purposes (    
subsection 7a77#e71 ! t]m import$       
prop]ty income means income 7:e!r 9 ! =m
 ( pr(its1 commissions1 fees1 or        
o!rwise7 d]iv$ 9 connection )--  7,a7   
manufactur+1 produc+1 gr[+1 or extract+ 
import$ prop]ty2  7,b7 ! sale1 ex*ange1 
or o!r disposition ( import$ prop]ty2 or
  7,c7 ! lease1 r5tal1 or lic5s+ (      
import$ prop]ty4  ,su* t]m %all n       
include any =eign oil & gas extraction  
income 7)9 ! mean+ ( section #ijg7;c77  
or any =eign oil relat$ income 7)9 !    
mean+ ( section #ijg7;c774  7#b7        
,import$ prop]ty ,= purposes ( ?is      
subsection--  7,a7 ,9 g5]al ,except z   
o!rwise provid$ 9 ?is p>agraph1 ! t]m   
import$ prop]ty means prop]ty :i* is    
import$ into ! ,unit$ ,/ates by !       
controll$ =eign corporation or a relat$ 
p]son4  7,b7 ,import$ prop]ty includes  

c]ta9 prop]ty import$ by unrelat$ p]sons
 ,! t]m import$ prop]ty includes any    
prop]ty import$ into ! ,unit$ ,/ates by 
an unrelat$ p]son if1 :5 su* prop]ty 0  
sold to ! unrelat$ p]son by ! controll$ 
=eign corporation 7or a relat$ p]son71 x
 0 reasonable to expect t--  7i7 su*    
prop]ty w\ld be import$ into ! ,unit$   
,/ates2 or  7ii7 su* prop]ty w\ld be us$
 z a compon5t 9 o!r prop]ty :i* w\ld be 
import$ into ! ,unit$ ,/ates4  7,c7     
,exception = prop]ty subsequ5tly export$
 ,! t]m import$ prop]ty does n include  
any prop]ty :i* is import$ into ! ,unit$
 ,/ates & :i*--  7i7 be=e sub/antial use
 9 ! ,unit$ ,/ates1 is sold1 leas$1 or  
r5t$ by ! controll$ =eign corporation or
 a relat$ p]son = direct use1           
consumption1 or disposition outside !   
,unit$ ,/ates2 or  7ii7 is us$ by !     
controll$ =eign corporation or a relat$ 
p]son z a compon5t 9 o!r prop]ty :i* is 
s sold1 leas$1 or r5t$4  7,d7 ,exception
 = c]ta9 agricultural commodities ,! t]m
 import$ prop]ty does n include any     

agricultural commodity :i* is n gr[n 9 !
 ,unit$ ,/ates 9 comm]cially m>ketable  
quantities4  7#c7 ,def9itions & special 
rules  7,a7 ,import ,= purposes ( ?is   
subsection1 ! t]m import means ent]+1 or
 )drawal f w>eh\se1 = consumption or    
use4 ,su* t]m includes any grant ( ! "r 
to use intangible prop]ty 7z def9$ 9    
section #icf7;h77#c77;,b77 9 ! ,unit$   
,/ates4  7,b7 ,unit$ /ates ,= purposes (
 ?is subsection1 ! t]m ,unit$ ,/ates    
includes ! ,commonweal? ( ,pu]to ,rico1 
! ,virg9 ,isl&s ( ! ,unit$ ,/ates1      
,guam1 ,am]ican ,samoa1 & ! ,commonweal?
 ( ! ,nor!rn ,m>iana ,isl&s4  7,c7      
,unrelat$ p]son ,= purposes ( ?is       
subsection1 ! t]m unrelat$ p]son means  
any p]son :o is n a relat$ p]son )      
respect to ! controll$ =eign            
corporation4  7,d7 ,coord9ation ) =eign 
base company sales income ,= purposes ( 
?is section1 ! t]m =eign base company   
sales income %all n include any import$ 
prop]ty income4  4  7c7 ,sep>ate        
,application ( ,limitations on ,=eign   

,tax ,cr$it = ,import$ ,prop]ty ,income 
7#a7 ,9 g5]al ,p>agraph 7#a7 ( section  
#ijd7;d7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by /rik+ & at ! end (    
subp>agraph 7,a71 by r$esignat+         
subp>agraph 7,b7 z subp>agraph 7,c71 &  
by ins]t+ aft] subp>agraph 7,a7 ! foll[+
 new subp>agraph3  7,b7 import$ prop]ty 
income1 &  4  7#b7 ,import$ prop]ty     
income def9$ ,p>agraph 7#b7 ( section   
#ijd7;d7 ( su* ,code is am5d$ by        
r$esignat+ subp>agraphs 7,i71 7,j71 &   
7,k7 z subp>agraphs 7,j71 7,k71 & 7,l71 
respectively1 & by ins]t+ aft]          
subp>agraph 7,h7 ! foll[+ new           
subp>agraph3  7,i7 ,import$ prop]ty     
income ,! t]m import$ prop]ty income    
means any income receiv$ or accru$ by   
any p]son :i* is ( a k9d :i* w\ld be    
import$ prop]ty income 7z def9$ 9       
section #ied7;j774  4  7#c7 ,con=m+     
am5dm5t ,clause 7ii7 ( section          
#ijd7;d77#b77;,a7 ( su* ,code is am5d$  
by ins]t+ or import$ prop]ty income aft]
 passive category income4  7d7 ,te*nical

 ,am5dm5ts  7#a7 ,clause 7iii7 ( section
 #ieb7;c77#a77;,b7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$--  7,a7 by       
r$esignat+ subclauses 7,,ii71 7,,iii71  
7,,iv71 & 7,v7 z subclauses 7,,iii71    
7,,iv71 7,v71 & 7,,vi71 &  7,b7 by      
ins]t+ aft] subclause 7,i7 ! foll[+ new 
subclause3  7,,ii7 import$ prop]ty      
income1  4  7#b7 ,! la/ s5t5ce (        
p>agraph 7#d7 ( section #ied7;b7 ( su*  
,code is am5d$ by /rik+ subsection      
7a77#e7 & ins]t+ subsection 7a77#d74    
7#c7 ,p>agraph 7#e7 ( section #ied7;b7 (
 su* ,code is am5d$ by /rik+ & ! =eign  
base company oil relat$ income & ins]t+ 
! =eign base company oil relat$ income1 
& ! import$ prop]ty income4  7e7        
,effective ,date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s (   
=eign corporations beg9n+ aft] ! date ( 
! enactm5t ( ?is ,act1 & to taxable ye>s
 ( ,unit$ ,/ates %>ehold]s )9 :i* or )  
:i* su* taxable ye>s ( su* =eign        
corporations end4