,i #aacth ,,congress #ast ,session ,h4 ,r4 #ibi ,,in ,,the ,,house ,,of ,,representatives ,february #bh1 #bjac ,ms4 ,schakowsky introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,oversight and ,government ,reform1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to provide ,federal contracting preferences for1 and a reduction in the rate of income tax imposed on1 ,patriot corporations1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,patriot ,corporations of ,america ,act of #bjac4 #b4 ,federal contracting preference for ,patriot corporations ,after ,december #ca1 #bjac1 in the evaluation of bids or proposals for a contract for the procurement of goods or services1 the ,federal ,government shall provide a preference to any entity that is a ,patriot corporation 7as defined in section #aa7;e7 of the ,internal ,revenue ,code of #aihf1 as added by section #c of this ,act71 unless the award of the contract to such entity would jeopardize the national security interests of the ,united ,states4 #c4 ,reduction in rate of income tax for ,patriot corporations 7a7 ,in general ,section #aa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7e7 ,patriot corporations 7#a7 ,rate reduction for ,patriot corporations ,in the case of a ,patriot corporation1 the amount of the tax imposed under subsection 7a7 7determined without regard to this paragraph7 shall be reduced 7but not below zero7 by an amount equal to #e percent of the taxable income of such corporation4 7#b7 ,patriot corporation defined ,for purposes of this subsection-- 7,a7 ,in general ,the term ,patriot corporation means1 with respect to any taxable year1 any corporation which is certified by the ,secretary as meeting the requirements of subparagraph 7,b7 for such taxable and the preceding taxable year4 7,b7 ,requirements ,a corporation meets the requirements of this subparagraph1 with respect to any taxable year1 if such corporation-- 7i7 produces in the ,united ,states at least #ij percent of the goods and services sold by such corporation during such taxable year1 7ii7 does not provide compensation to any management personnel of such corporation at a level of compensation which exceeds #aj1jjj percent of the level of compensation of the full-time employee of such corporation with the lowest level of compensation during such taxable year1 7iii7 conducts at least #ej percent of the research and development conducted by such corporation during such taxable year 7determined on the basis of cost7 in the ,united ,states1 7iv7 has contributed at least #e percent of wages paid by the corporation during the taxable year to a portable pension fund for the benefit of employees of the corporation1 7v7 has paid at least #gj percent of the cost of a standardized health insurance plan for the benefit of employees of the corporation during such taxable year1 7vi7 has maintained at all times during such taxable year neutrality in employee organizing drives and has in effect a policy to that effect1 7vii7 provides full differential salary and insurance benefits for all ,national ,guard and ,reserve employees who are called to active duty1 7viii7 has not been 7at any time during such taxable year7 in violation of appropriate ,federal regulations including those related to the environment1 workplace safety1 labor relations1 and consumer protections1 as determined by the ,secretary1 and 7ix7 has not been in violation of any other regulations specified by the ,secretary4 7,c7 ,certification process ,not later than #ij days after the date of the enactment of this subsection1 the ,secretary shall establish an application and certification process to annually certify corporations as ,patriot corporations4 ,such certifications shall be made at such time and on the basis of such materials as the ,secretary determines appropriate4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 7c7 ,certification allowed for year preceding effective date of rate reduction ,for purposes of section #aa7;e7 of the ,internal ,revenue ,code of #aihf1 as added by this section1 the ,secretary may certify a corporation as a ,patriot corporation for the last taxable year of the corporation beginning on or before ,december #ca1 #bjac1 if the corporation meets the requirements of paragraph 7#b77;,b7 of such section for such taxable year4 #d4 ,tax avoidance foreign corporations subject to ,united ,states income tax 7a7 ,in general ,paragraph 7#d7 of section #ggja7;a7 of the ,internal ,revenue ,code of #aihf 7defining domestic7 is amended to read as follows3 7#d7 ,domestic 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term domestic when applied to a corporation or partnership means created or organized in the ,united ,states or under the law of the ,united ,states or of any ,state unless1 in the case of a partnership1 the ,secretary provides otherwise by regulations4 7,b7 ,tax avoidance foreign corporations treated as domestic ,any corporation which would 7but for this subparagraph7 be treated as a foreign corporation shall be treated as a domestic corporation if the ,secretary determines that such corporation was created or organized as a foreign corporation 7instead of as a domestic corporation7 principally for the purpose of avoiding being treated as a domestic corporation under this title4 4 7b7 ,effective dates ,the amendment made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4