,,ii #aacth ,,congress #b;d ,session ,s4 #bbga ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #cj1 #bjad ,mr4 ,murphy 7for himself and ,mr4 ,blumenthal7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to establish the ,green ,bank to assist in the financing of qualified clean energy projects and qualified energy efficiency projects4 #a4 ,capitalization1 ,method of ,capital ,stock ,payments1 ,issuance of ,green ,bonds ,chapter #ca of title #ca1 ,united ,states ,code1 is amended by adding after section #cajb the following new section3 #cajb;,a4 ,green ,bonds 7a7 ,initial ,capitalization ,the ,secretary of the ,treasury shall issue bonds 7in this section referred to as ,green ,bonds7 in the amount of #aj1jjj1jjj1jjj on the credit of the ,united ,states to acquire capital stock of the ,green ,bank 7established under section #ihja of this title71 of which not more than #bjj1jjj1jjj shall be used for costs that the ,green ,bank incurs for its first year in order to provide loans1 loan guarantees1 debt securitization1 insurance1 portfolio insurance1 and other forms of financing support or risk management for qualified clean energy projects and qualified energy efficiency projects 7as such terms are defined under such section74 ,stock certificates evidencing ownership in the ,green ,bank shall be issued by the ,green ,bank to the ,secretary of the ,treasury1 to the extent of payments made for the capital stock of the ,green ,bank4 7b7 ,future ,capitalization ,upon the request of the ,bank1 the ,secretary of the ,treasury shall issue additional ,green ,bonds on the credit of the ,united ,states to acquire additional capital stock of the ,green ,bank in an aggregate amount not to exceed #ej1jjj1jjj1jjj outstanding at any one time4 7c7 ,denominations and ,maturity ,green ,bonds shall be in such forms and denominations1 and shall mature within such periods1 as determined by the ,secretary of the ,treasury4 7d7 ,interest ,green ,bonds shall bear interest at a rate not less than the current average yield on outstanding market obligations of the ,united ,states of comparable maturity during the month preceding the issuance of the obligation as determined by the ,secretary of the ,treasury4 7e7 ,guaranteed ,green ,bonds shall be fully and unconditionally guaranteed both as to interest and principal by the ,united ,states1 and such guaranty shall be expressed on the face of each bond4 7f7 ,lawful ,investments ,green ,bonds shall be lawful investments1 and may be accepted as security for all fiduciary1 trust1 and public funds1 the investment or deposit of which shall be under the authority or control of the ,united ,states or any officer or officers thereof4 4 #b4 ,green ,bank ,title #ca1 ,united ,states ,code1 is amended by adding the following new chapter at the end thereof3 #ih ,green ,bank ,sec4 #ihja4 ,green ,bank4 #ihja4 ,green ,bank 7a7 ,short title ,this section may be cited as the ,green ,bank ,act of #bjad4 7b7 ,purposes ,the purposes of this section are as follows3 7#a7 ,to evaluate and coordinate financing for qualified clean energy projects and qualified energy efficiency projects4 7#b7 ,to provide loans1 loan guarantees1 debt securitization1 insurance1 portfolio insurance1 and other forms of financing support or risk management to qualified clean energy projects and qualified energy efficiency projects4 7#c7 ,to facilitate-- 7,a7 efficient tax equity markets for qualified clean energy projects2 and 7,b7 the financing of long-term clean energy purchasing by governmental and non-governmental not-for-profit entities4 7#d7 ,to foster-- 7,a7 the development and consistent application of transparent underwriting standards1 standard contractual terms1 and measurement and verification protocols for qualified clean energy projects and qualified energy efficiency projects2 7,b7 the creation of performance data that enables effective underwriting1 risk management1 and pro forma modeling of financial performance of qualified clean energy projects and qualified energy efficiency projects to support primary financing markets and stimulate development of secondary investment markets for clean energy projects and energy efficiency projects2 and 7,c7 the level of financing support for qualified clean energy projects and qualified energy efficiency projects necessary to advance vital national objectives1 including-- 7i7 achieving energy independence from foreign energy sources2 7ii7 abating climate change by increasing zero or low carbon electricity generation and transportation capabilities2 7iii7 realizing energy efficiency potential in existing infrastructure2 7iv7 easing the economic effects of transitioning from a carbon-based economy to a clean energy economy2 7v7 achieving job creation through the construction and operation of qualified clean energy projects and qualified energy efficiency projects2 7vi7 fostering long-term domestic manufacturing capacity in the clean energy and energy efficiency industries2 and 7vii7 complementing and supplementing other clean energy and energy efficiency legislation at the ,federal or ,state level4 7c7 ,definitions ,in this section3 7#a7 ,bank ,the term ,bank means the ,green ,bank established under subsection 7d74 7#b7 ,board ,the term ,board means the ,board of ,directors of the ,bank4 7#c7 ,clean ,energy project ,the term clean energy project means any electricity generation1 transmission1 storage1 heating1 cooling1 transportation1 distribution1 industrial process1 or manufacturing project whose primary purpose is the deployment1 development1 or production of an energy system or technology that avoids1 reduces1 or sequesters air pollutants or anthropogenic greenhouse gases1 including the following3 7,a7 ,solar4 7,b7 ,wind4 7,c7 ,geothermal4 7,d7 ,biomass4 7,e7 ,hydropower4 7,f7 ,ocean and hydrokinetic4 7,g7 ,fuel cell4 7,h7 ,advanced battery4 7,i7 ,carbon capture and sequestration4 7,j7 ,next generation biofuels from nonfood feedstocks4 7,k7 ,alternative vehicle fuel infrastructure4 7,l7 ,nuclear4 7#d7 ,energy ,efficiency project ,the term energy efficiency project means any project1 technology1 function1 or measure that results in the reduction of energy use required to achieve the same level of service or output prior to the application of such project1 technology1 function1 or measure1 or substantially reduces greenhouse gas emissions relative to emissions that would have occurred prior to the application of such project1 technology1 function1 or measure4 7#e7 ,green ,bond ,the term ,green ,bond means a bond issued pursuant to section #cajb;,a of this title4 7#f7 ,qualified ,clean ,energy ,project ,the term qualified clean energy project means a clean energy project that-- 7,a7 is carried out domestically within the territorial borders of the ,united ,states2 7,b7 stays current on interest and debt payment obligations2 7,c7 pays wages in accordance with subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code 7commonly referred to as the ,davis-,bacon ,act72 7,d7 if for nuclear power1 is funded by the ,bank only after all other existing ,federal financial support has been expended2 and 7,e7 satisfies any other conditions established by the ,bank and published in the ,federal ,register4 7#g7 ,qualified ,energy ,efficiency ,project ,the term qualified energy efficiency project means an energy efficiency project1 including smart grid technologies and functions characterized in section #acja of the ,energy ,independence and ,security ,act of #bjjg and end-use technologies for efficiency gains in new construction and across existing infrastructure that-- 7,a7 is carried out domestically within the territorial borders of the ,united ,states2 7,b7 stays current on interest and debt payment obligations2 7,c7 pays wages in accordance with subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code 7commonly referred to as the ,davis-,bacon ,act72 and 7,d7 satisfies any other conditions established by the ,bank and published in the ,federal ,register4 7#h7 ,state clean energy financing institution ,the term ,state clean energy financing institution means an independent entity1 quasi-independent entity1 or an entity within a ,state agency or financing authority established by a ,state to-- 7,a7 provide low-cost or long-term financing support or credit enhancements1 including loan guarantees and loan loss reserves1 for qualified clean energy projects or qualified energy efficiency projects2 and 7,b7 create liquid markets for these projects including warehousing and securitization1 or take other steps to reduce financial barriers to the deployment of existing and innovative clean energy and energy efficiency projects4 ,state clean energy financing institutions may enter into partnerships with private entities4 7d7 ,green ,bank 7#a7 ,establishment of ,corporation ,there is established a corporation to be known as the ,green ,bank that shall be wholly owned by the ,united ,states4 7#b7 ,independent corporation ,the ,bank shall be an independent corporation4 ,neither the ,bank nor any of its functions1 powers1 or duties shall be transferred to or consolidated with any other department1 agency1 or corporation of the ,government unless the ,congress provides otherwise4 7#c7 ,charter ,the ,bank shall be chartered for #bj years from the date of enactment of this section4 7#d7 ,governance 7,a7 ,board of ,directors of the ,bank 7i7 ,in general ,the ,bank shall be under the direction of a ,board of ,directors4 7ii7 ,membership ,the ,board shall consist of #aa members1 as follows3 7,i7 ,the ,secretary of ,energy or the ,secretary's designee4 7,,ii7 ,the ,secretary of the ,treasury or the ,secretary's designee4 7,,iii7 ,the ,secretary of the ,interior or the ,secretary's designee4 7,,iv7 ,the ,secretary of ,agriculture or the ,secretary's designee4 7,v7 ,the ,secretary of ,transportation or the ,secretary's designee4 7,,vi7 #f members appointed by the ,president of the ,united ,states including a ,chief ,executive ,officer1 #a member with expertise regarding renewable energy1 #a member with expertise regarding energy efficiency1 #a member with expertise regarding electric utilities1 #a member with expertise regarding consumer affairs1 and #a member with expertise regarding sustainable transportation4 7iii7 ,quorum #f members of the ,board shall constitute a quorum4 7iv7 ,bylaws ,the ,board shall adopt1 and may amend1 such bylaws as are necessary for the proper management and functioning of the ,bank1 and shall1 in such bylaws1 designate the vice presidents and other officers of the ,bank and prescribe their duties4 7v7 ,terms ,the initial terms of the members of the ,board shall be #d years4 ,for terms beginning after the first #d years following the date of the enactment of this section1 the ,board shall create staggered terms of #b1 #c1 and #d years for members of the ,board4 7vi7 ,vacancies ,any vacancy on the ,board shall be filled in the same manner in which the original appointment was made4 7vii7 ,interim appointments ,any member appointed to fill a vacancy occurring before the expiration of the term for which such member's predecessor was appointed shall be appointed only for the remainder of such term4 7viii7 ,reappointment ,members of the ,board may be reappointed for additional terms of service as members of the ,board4 7ix7 ,continuation of service ,any member of the ,board whose term has expired may continue to serve on the ,board until the earlier of-- 7,i7 the date on which such member's successor is appointed2 or 7,,ii7 the end of the #f-month period beginning on the date such member's term expires4 7x7 ,chairman ,the ,board shall select a ,chairman from among its members4 7,b7 ,executive ,vice ,president ,the ,chief ,executive ,officer shall appoint an ,executive ,vice ,president who-- 7i7 shall serve as ,chief ,executive ,officer of the ,bank during the absence or disability of1 or in the event of a vacancy in the office1 of ,chief ,executive ,officer2 and 7ii7 shall at other times perform such functions as the ,chief ,executive ,officer may prescribe4 7,c7 ,policies and ,procedures ,at the request of any #b members of the ,board1 the ,chairman shall place an item pertaining to the policies or procedures of the ,bank on the agenda for discussion by the ,board4 ,not later than #cj days after the date such a request is made1 the ,chairman shall hold a meeting of the ,board at which such item shall be discussed4 7,d7 ,conflicts of interest ,no director1 officer1 attorney1 agent1 or employee of the ,bank shall in any manner1 directly or indirectly1 participate in the deliberation upon1 or the determination of1 any question affecting such individual's personal interests1 or the interests of any corporation1 partnership1 or association in which such individual is directly or indirectly personally interested4 7#e7 ,hiring and ,contracting authority 7,a7 ,contracting ,the ,bank may employ or otherwise contract with banks1 credit agencies1 attorneys1 and other third parties at customary commercial rates4 7,b7 ,hiring ,notwithstanding any otherwise applicable ,federal rules and regulations1 the ,bank may employ and otherwise contract with employees and provide compensation to such employees at prevailing rates for compensation for similar positions in private industry4 7#f7 ,sunset 7,a7 ,expiration of charter ,the ,bank shall continue to exercise its functions until all obligations and commitments of the ,bank are discharged1 even after its charter has expired4 7,b7 ,prior obligations ,no provisions of this subsection shall be construed as preventing the ,bank from-- 7i7 acquiring obligations prior to the date of the expiration of its charter which mature subsequent to such date2 7ii7 assuming1 prior to the date of the expiration of its charter1 liability as guarantor1 endorser1 or acceptor of obligations which mature subsequent to such date2 7iii7 issuing1 prior or subsequent to the date of the expiration of its charter1 for purchase by the ,secretary of the ,treasury or any other purchasers1 its notes1 debentures1 bonds1 or other obligations which mature subsequent to such date2 or 7iv7 continuing as a corporation and exercising any of its functions subsequent to the date of the expiration of its charter for purposes of orderly liquidation1 including the administration of its assets and the collection of any obligations held by the ,bank4 7e7 ,lending1 ,financing1 ,expenditures 7#a7 ,in general ,the ,bank shall establish a program to provide on a competitive basis loans1 loan guarantees1 debt securitization1 insurance1 portfolio insurance1 and other forms of financing support or risk management1 as the ,bank determines appropriate1 for any qualifying clean energy project or qualifying energy efficiency project4 7#b7 ,requirements ,the ,bank may only provide financing support 7including loans1 loan guarantees1 debt securitization1 insurance1 portfolio insurance1 and other forms of financing support or risk management under paragraph 7#a77 if-- 7,a7 such support is commercially reasonable and does not exceed #hj percent of the capitalization of the qualified clean energy project or qualified energy efficiency project2 7,b7 is secured by the underlying project or such other collateral as the ,chief ,executive ,officer of the ,bank determines appropriate2 and 7,c7 in the judgment of the ,chief ,executive ,officer-- 7i7 the private credit market is not providing adequately low-priced financing to enable otherwise credit worthy entities to carry out qualified clean energy projects and qualified energy efficiency projects2 7ii7 such financing support would facilitate construction or expansion of a qualified clean energy project or qualified energy efficiency project at an accelerated rate2 or 7iii7 such financing support would stimulate1 aid1 or otherwise support domestic manufacturing of finished products or component parts used in clean energy projects or energy efficiency projects4 7#c7 ,state clean energy financing institutions 7,a7 ,co-funding ,the ,bank may co-fund a qualified clean energy project or qualified energy efficiency project with a ,state clean energy financing institution4 7,b7 ,establishment ,the ,bank may make up to #ejj1jjj1jjj available through a low-interest loan for the establishment of a ,state clean energy financing institution if the clean energy financing institution-- 7i7 provides at least an equal amount for establishing such institution2 and 7ii7 uses funding from the ,bank only for the purposes described in this section4 7#d7 ,financing activities 7,a7 ,in general ,the ,bank may facilitate financing transactions in tax equity markets and long-term purchasing of clean energy by governmental and non-governmental not-for-profit entities1 to the degree and extent that the ,bank determines such financing activity is appropriate and consistent with carrying out the terms of this section4 7,b7 ,securitization 7i7 ,authority ,the ,bank may1 upon such terms and conditions as the ,bank considers appropriate1 guarantee the timely payment of principal of and interest on securities that are-- 7,i7 issued by any issuer approved for the purposes of this subparagraph by the ,bank2 and 7,,ii7 based on and backed by a trust or pool composed of loans made pursuant to this section4 7ii7 ,fees ,the ,bank may collect from the issuer of a security guaranteed under this subparagraph a reasonable fee for the guarantee under this subparagraph4 7iii7 ,payments ,if an issuer fails to make any payment of principal of or interest on any security guaranteed under this subparagraph1 the ,bank shall make such payment as and when due1 and upon such payment shall be subrogated fully to the rights satisfied by such payment4 7iv7 ,default ,the ,bank may1 in connection with any guaranty under this subparagraph1 whether before or after any default1 provide by contract with the issuer for the extinguishment1 upon default by the issuer1 of any redemption1 equitable1 legal1 or other right1 title1 or interest of the issuer in any loan or loans constituting the trust or pool against which the guaranteed securities are issued1 and with respect to any issue of guaranteed securities1 in the event of default and pursuant otherwise to the terms of the contract1 the loans that constitute such trust or pool shall become the absolute property of the ,bank subject only to the unsatisfied rights of the holders of the securities based on and backed by such trust or pool4 7v7 ,effect of other laws ,no ,state or local law1 and no ,federal law 7except ,federal law enacted expressly in limitation of this subparagraph after the effective date of this subparagraph71 shall preclude or limit the exercise by the ,bank of-- 7,i7 its power to contract with the issuer on the terms stated in clause 7iv72 7,,ii7 its rights to enforce any such contract with the issuer2 or 7,,iii7 its ownership rights1 as provided in clause 7iv71 in the loans constituting the trust or pool against which the guaranteed securities are issued4 7#e7 ,trusts ,the ,bank is authorized to create1 accept1 execute1 and otherwise administer in all respects trusts1 receiverships1 conservatorships1 liquidating or other agencies1 or other fiduciary and representative undertakings and activities1 as appropriate for financing purposes4 ,instruments issued by the ,bank pursuant to this section are1 to the same extent as securities which are direct obligations of or obligations guaranteed as to principal or interest by the ,united ,states1 exempt securities within the meaning of laws administered by the ,securities and ,exchange ,commission4 7#f7 ,fees ,in addition to fees authorized under paragraph 7#d77;,b77ii71 the ,bank shall assess reasonable fees on its activities1 including loans1 loan guarantees1 insurance1 portfolio insurance1 and other forms of financing support or risk management it provides so as to cover its reasonable costs and expenses1 consistent with the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa et seq471 provided the ,bank operates as a not-for-profit entity4 7#g7 ,appropriations and retention of receipts ,for purposes of the ,federal ,credit ,reform ,act1 funds made available to the ,green ,bank pursuant to section #cajb;,a for carrying out this section are appropriated to the ,green ,bank for the purposes described in the section4 ,receipts collected by the ,green ,bank1 consistent with the ,federal ,credit ,reform ,act1 shall be considered to have been provided in advance in an appropriations act1 and shall remain available to the ,green ,bank until expended4 7#h7 ,environmental review ,in providing any financing support under this section1 the ,bank may1 with the concurrence of the ,council on ,environmental ,quality1 adopt by reference and rely on any applicable categorical exclusion or environmental review promulgated by any other ,federal ,agency pursuant to the ,national ,environmental ,policy ,act of #aifi 7,public ,law #ia-aij74 7#i7 ,immunity from impairment1 limitation1 or restriction 7,a7 ,in general ,all rights and remedies of the ,bank shall be immune from impairment1 limitation1 or restrictions by or under-- 7i7 any law 7other than a law enacted by ,congress expressly in limitation of this paragraph7 that becomes effective after the acquisition by the ,bank of the subject or property on1 under1 or with respect to which the right or remedy arises or exists or would so arise or exist in the absence of the law2 or 7ii7 any administrative or other action that becomes effective after the acquisition4 7,b7 ,state ,law ,the ,bank may conduct its business without regard to any qualification or law of any ,state relating to incorporation4 7#aj7 ,taxation 7,a7 ,in general ,subject to subparagraph 7,b71 the ,bank 7including its activities1 capital1 reserves1 surplus and income7 shall be exempt from all taxation imposed by any ,state or local political subdivision of a ,state4 7,b7 ,real ,property ,any real property of the ,bank shall be subject to taxation by a ,state or political subdivision of a ,state to the same extent according to the value of the real property as other real property is taxed4 7#aa7 ,power to remove2 jurisdiction ,notwithstanding any other provision of law1 any civil action1 suit1 or proceeding to which the ,bank is a party shall be deemed to arise under the laws of the ,united ,states1 and the ,united ,states district courts shall have original jurisdiction4 ,the ,bank may1 without bond or security1 remove any such action1 suit1 or proceeding from a ,state court to a ,united ,states district court or to the ,united ,states ,district ,court for the ,district of ,columbia4 7#ab7 ,spending safeguards 7,a7 ,in general ,the ,chief ,executive ,officer of the ,bank-- 7i7 shall require any entity receiving financing support 7including a loan1 loan guarantee1 debt securitization1 insurance1 portfolio insurance1 and other forms of financing support or risk management7 pursuant to this section to report quarterly1 in a format specified by the ,chief ,executive ,officer1 on such entity's use of such support and its progress fulfilling the objectives for which such support was granted1 and the ,chief ,executive ,officer shall make these reports available to the public2 7ii7 may establish additional reporting and information requirements for any recipient of financing support made available pursuant to this section2 7iii7 shall establish appropriate mechanisms to ensure appropriate use and compliance with all terms of any financing support made available pursuant to this section2 7iv7 may1 in addition to and consistent with any other authority under applicable law1 deobligate financing support made available pursuant to this section to entities that demonstrate an insufficient level of performance1 or wasteful or fraudulent spending1 as defined in advance by the ,chief ,executive ,officer1 and award these funds competitively to new or existing applicants consistent with this section2 7v7 shall create and maintain a fully searchable database1 accessible on the ,internet 7or successor protocol7 at no cost to the public1 that contains at least-- 7,i7 a list of each entity that has applied for a loan1 loan guarantee1 insurance1 portfolio insurance1 or other forms of financing support or risk management under this section2 7,,ii7 a description of each application2 7,,iii7 the status of each such application2 7,,iv7 the name of each entity receiving funds made available pursuant to this section2 7,v7 the purpose for which such entity is receiving such funds2 7,,vi7 each quarterly report submitted by the entity pursuant to this section2 and 7,,vii7 such other information sufficient to allow the public to understand and monitor loans1 loan guarantees1 insurance1 portfolio insurance1 and other forms of financing support or risk management provided under this section2 7vi7 to the extent practicable1 data maintained under clause 7v7 shall be used to inform private capital markets1 including the development of underwriting standards for the financing of clean energy projects and energy efficiency projects2 7vii7 shall make all financing transactions available for public inspection1 including formal annual reviews by both a private auditor and the ,comptroller ,general2 and 7viii7 shall at all times be available to receive public comment in writing on the activities of the ,bank4 7,b7 ,protection of confidential business information ,to the extent necessary and appropriate1 the ,chief ,executive ,officer may redact any information regarding applicants and borrowers to protect confidential business information4 7#ac7 ,guarantee ,except as provided in section #cajb;,a7e7 with respect to ,green ,bonds1 financial support provided by the ,bank shall not be fully and unconditionally guaranteed by the ,united ,states4 4 #c4 ,conforming amendments 7a7 ,tax exempt status ,subsection 7l7 of section #eja of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7#d7 ,the ,green ,bank established under section #ihja of title #ca1 ,united ,states ,code4 4 7b7 ,wholly owned ,government corporation ,paragraph 7#c7 of section #iaja of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7,s7 the ,green ,bank4 4 7c7 ,clerical amendments 7#a7 ,the table of sections for chapter #ca of title #ca1 ,united ,states ,code1 is amended by inserting after the item relating to section #cajb the following new item3 #cajb;,a4 ,green bonds4 4 7#b7 ,the table of chapters for subtitle ,,vi of title #ca1 ,united ,states ,code1 is amended by adding at the end the following new item3 #ih4 ,green ,bank #ihja 4 #d4 ,defer deduction of interest expense related to deferred income 7a7 ,in general ,section #afc of the ,internal ,revenue ,code of #aihf 7relating to deductions for interest expense7 is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,deferral of deduction for interest expense related to deferred income 7#a7 ,general rule ,in the case of any taxpayer1 the amount of foreign-related interest expense allowed as a deduction under this chapter for any taxable year shall not exceed an amount that bears the same ratio to the sum of the foreign-related interest expense for such year and the deferred foreign-related interest expense as the current inclusion ratio4 7#b7 ,treatment of deferred deductions ,if1 for any taxable year-- 7,a7 the amount that bears the same ratio to the sum of the foreign-related interest expense for such year and the deferred foreign-related interest expense as the current inclusion ratio1 exceeds 7,b7 the foreign-related interest expense for such year1 there shall be allowed as a deduction for such year an amount equal to the lesser of such excess and the deferred foreign-related interest expense4 7#c7 ,definitions and special rule ,for purposes of this subsection-- 7,a7 ,foreign-related interest expense ,the term foreign-related interest expense means1 for any taxable year1 an amount of interest expense for such taxable year allocated and apportioned under sections #hfa and #hfd7;e7 to income from sources outside the ,united ,states which bears the same proportion to such interest expense as the value of all stock held by the taxpayer in all section #ijb corporations 7as defined in section #iji7;d77#e77 with respect to which the taxpayer meets the ownership requirements of subsection 7a7 or 7b7 of section #ijb bears to the value of all assets of the taxpayer which generate gross income from sources outside the ,united ,states4 7,b7 ,deferred foreign-related interest expense ,the term deferred foreign-related interest expense means the excess1 if any1 of the aggregate foreign-related interest expense for all prior taxable years1 over the aggregate amount allowed as a deduction under paragraphs 7#a7 and 7#b7 for all prior taxable years4 7,c7 ,value of assets ,except as otherwise provided by the ,secretary1 for purposes of paragraph 7#c77;,a77i71 the value of any asset shall be the amount with respect to such asset used as determined for purposes of allocating and apportioning interest expense under sections #hfa and #hfd7;e74 7,d7 ,current inclusion ratio ,the term current inclusion ratio means1 with respect to any domestic corporation which meets the ownership requirements of subsection 7a7 or 7b7 of section #ijb with respect to one or more section #ijb corporations for any taxable year1 the ratio 7expressed as a percentage7 of-- 7i7 the sum of all dividends received by the domestic corporation from a section #ijb corporation during the taxable year plus amounts includible in gross income under section #iea7;a7 from such section #ijb corporation1 in each case computed without regard to section #gh1 divided by 7ii7 the aggregate amount of post-#aihf undistributed earnings for the taxable year4 7,e7 ,aggregate amount of post-#aihf undistributed earnings ,the term aggregate amount of post-#aihf undistributed earnings means1 with respect to any domestic corporation which meets the ownership requirements of subsection 7a7 or 7b7 of section #ijb with respect to one or more section #ijb corporations1 the domestic corporation's pro rata share of the post-#aihf undistributed earnings 7as defined in section #ijb7;c77#a77 of all such section #ijb corporations4 7,f7 ,foreign currency conversion ,for purposes of determining the current inclusion ratio1 and except as otherwise provided by the ,secretary1 the aggregate amount of post-#aihf undistributed earnings for the taxable year shall be determined by translating each section #ijb corporation's post-#aihf undistributed earnings into dollars using the average exchange rate for such year4 7#d7 ,treatment of affiliated groups ,the current inclusion ratio of each member of an affiliated group 7as defined in section #hfd7;e77#e77;,a77 shall be determined as if all members of such group were a single corporation4 7#e7 ,application to separate categories of income ,this subsection shall be applied separately with respect to the categories of income specified in section #ijd7;d77#a74 7#f7 ,regulations ,the ,secretary may prescribe such regulations or other guidance as is necessary or appropriate to carry out the purposes of this subsection1 including regulations or other guidance providing-- 7,a7 for the proper application of this subsection with respect to changes in ownership of a section #ijb corporation1 7,b7 that certain corporations that otherwise would not be members of the affiliated group will be treated as members of the affiliated group for purposes of this subsection1 7,c7 for the proper application of this subsection with respect to the taxpayer's share of a deficit in earnings and profits of a section #ijb corporation1 7,d7 for appropriate adjustments to the determination of the value of stock in any section #ijb corporation for purposes of this subsection or to the foreign-related interest expense to account for income that is subject to tax under section #hhb7;a77#a71 and 7,e7 for the proper application of this subsection with respect to interest expense that is directly allocable to income with respect to certain assets4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning on or after ,january #a1 #bjae4