,,ii  #aac? ,,congress  #b;d ,session   
,s4 #bdhi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #ah1 #bjad ,mr4  
,wal% introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to ensure t       
suffici5t fund+ is made available = !   
,highway ,tru/ ,fund1 & = o!r purposes4 
#a4 ,%ort title2 table ( cont5ts  7a7   
,%ort title  ,?is ,act may be cit$ z !  
,am]ican ,jobs = ,am]ican ,infra/ructure
 ,act4  7b7 ,table ( cont5ts ,! table ( 
cont5ts ( ?is ,act is z foll[s3 ,sec4   
#a4 ,%ort title2 table ( cont5ts4       
,,title ,i--,highway ,tru/ ,fund ,sec4  
#aja4 ,ensur+ suffici5t fund+ = !       
,highway ,tru/ ,fund4 ,sec4 #ajb4 ,s5se 
( ,congress reg>d+ ! ,surface           
,transportation reau?orization4 ,,title 
,,ii--,wat] infra/ructure ,sec4 #bja4   
,reclamation ,wat] ,infra/ructure ,fund4
 ,sec4 #bjb4 ,s5se ( ,congress reg>d+   
direction ( ,secret>y ( ! ,int]ior4     
,,title ,,iii--,en]gy infra/ructure     

,sec4 #cja4 ,en]gy ,upgrade & ,retr(it  
,infra/ructure ,fund4 ,sec4 #cjb4 ,s5se 
( ,congress reg>d+ direction ( ,secret>y
 ( ,en]gy4 ,,title ,,iv--,taxation (    
=eign income ,sec4 #dja4 ,allocation (  
exp5ses & taxes on basis ( repatriation 
( =eign income4 ,sec4 #djb4             
,modifications to rules relat+ to inv]t$
 corporations4 ,,title ,v--,deficit     
,r$uction ,sec4 #eja4 ,deficit r$uction4
  ,i ,highway ,tru/ ,fund  #aja4 ,ensur+
 suffici5t fund+ = ! ,highway ,tru/     
,fund  7a7 ,9 g5]al ,section #iejc7;f7 (
 ! ,int]nal ,rev5ue ,code ( #aihf is    
am5d$ by r$esignat+ p>agraph 7#e7 z     
p>agraph 7#f7 & by ins]t+ aft] p>agraph 
7#d7 ! foll[+ new p>agraph3  7#e7       
,ensur+ adequate balances 9 ,highway    
,acc\nt & ,mass ,transit ,acc\nt ,= !   
p]iod ( fiscal ye>s #bjad ?r\gh #bjah1  
out ( money 9 ! ,treasury n o!rwise     
appropriat$1 !re are h]eby appropriat$--
 7,a7 9 ! case ( ! ,highway ,acc\nt 7z  
def9$ 9 subsection 7e77#e77;,b77 9 !    
,highway ,tru/ ,fund1 su* am\nts z are  

det]m9$ by ! ,secret>y to be necess>y to
 ensure t ! balance ( su* acc\nt is n   
less ?an #d1jjj1jjj1jjj = any qu>t] dur+
 su* p]iod1 &  7,b7 9 ! case ( ! ,mass  
,transit ,acc\nt 9 ! ,highway ,tru/     
,fund1 su* am\nts z are det]m9$ by !    
,secret>y to be necess>y to ensure t !  
balance ( su* acc\nt is n less ?an      
#a1jjj1jjj1jjj = any qu>t] dur+ su*     
p]iod4  4  7b7 ,effective date ,!       
am5dm5ts made by ?is section %all take  
effect on ! date ( ! enactm5t ( ?is     
,act4  #ajb4 ,s5se ( ,congress reg>d+ ! 
,surface ,transportation reau?orization 
,x is ! s5se ( ,congress t ,congress    
%\ld provide annual inflation increases 
= ! ,f$]al ,l&s ,access ,program1 !     
,f$]al ,l&s ,transportation ,program1 & 
! ,tribal ,transportation ,program 9 !  
next ,surface ,transportation           
reau?orization4  ,,ii ,wat]             
infra/ructure  #bja4 ,reclamation ,wat] 
,infra/ructure ,fund  7a7 ,e/abli%m5t ( 
,fund ,!re is e/abli%$ 9 ! ,treasury a  
fund to be kn[n z ! ,reclamation ,wat]  

,infra/ructure ,fund 7ref]r$ to 9 ?is   
section z ! ,fund71 to be adm9i/]$ by ! 
,secret>y ( ! ,int]ior1 to be available 
)\t fiscal ye> limitation & n subject to
 appropriation1 = use 9 accordance )    
subsection 7e74  7b7 ,deposits ,= !     
p]iod ( fiscal ye>s #bjae ?r\gh #bjcf1 !
 ,secret>y ( ! ,treasury %all deposit 9 
! ,fund-- 7#a7 ( ! rev5ues t w\ld       
o!rwise be deposit$ = ea* fiscal ye> 9 !
 reclamation fund e/abli%$ by ! fir/    
section ( ! ,act ( ,june #ag1 #aijb 7#cb
 ,/at4 #chh1 *apt] #ajic71 #aej1jjj1jjj2
 &  7#b7 out ( am\nts 9 ! ,treasury n   
o!rwise obligat$1 #f1ejj1jjj1jjj4  7c7  
,inve/m5t  7#a7 ,9 g5]al ,! ,secret>y ( 
! ,treasury %all inve/ su* portion ( !  
,fund z is n1 9 ! judgm5t ( ! ,secret>y1
 requir$ to meet curr5t )drawals4  7#b7 
,cr$its to ,fund ,! int]e/ on1 & !      
proce$s f ! sale or r$emption (1 any    
obligations held 9 ! ,fund %all be      
cr$it$ to1 & =m a "p (1 ! ,fund4  7d7   
,prohibition ,am\nts 9 ! ,fund may n be 
made available = any purpose o!r ?an a  

purpose describ$ 9 subsection 7e74  7e7 
,use ( funds ,! ,secret>y ( ! ,int]ior  
may use am\nts 9 ! ,fund = ! foll[+     
purposes3 7#a7 ,rural wat] projects ,to 
complete con/ruction 7b n includ+       
op]ation or ma9t5ance7 ( rural wat]     
projects-- 7,a7 t 7 au?oriz$ to be c>ri$
 out by ! ,secret>y on or be=e ! date ( 
enactm5t ( ?is ,act2 or  7,b7 = :i*--   
7i7 pursuant to section #ajf7;e7 ( !    
,rural ,wat] ,supply ,act ( #bjjf 7#dc  
,u4,s4,c4 #bdje7;e771 a feasibility /udy
 has be5 submitt$ to ! ,secret>y by n   
lat] ?an ,decemb] #ca1 #bjae2 &  7ii7 an
 ,act enact$ aft] ! date ( enactm5t (   
?is ,act au?orizes con/ruction4  7#b7   
,def]r$ ma9t5ance ( ,indian irrigation  
projects ,to address def]r$ ma9t5ance   
ne$s ( ,indian irrigation projects      
7includ+ ma9t5ance1 repair1 & replacem5t
 activities = any /ructures1 facilities1
 equipm5t1 or vehicles us$ 9 connection 
) ! op]ation ( ^? projects7 t1 on ! date
 ( enactm5t ( ?is ,act-- 7,a7 are own$  
by ! ,f$]al ,gov]nm5t1 z li/$ 9 ! ,f$]al

 inv5tory requir$ by ,executive ,ord]   
#accbg 7#dj ,u4,s4,c4 #aba note2 relat+ 
to ,f$]al real prop]ty asset managem5t72
  7,b7 are manag$ by ! ,bureau ( ,indian
 ,affairs 7includ+ projects manag$ "u   
contracts or compacts pursuant to !     
,indian ,self-,det]m9ation & ,education 
,assi/ance ,act 7#be ,u4,s4,c4 #dej et  
seq4772 &  7,c7 h def]r$ ma9t5ance      
docum5t$ by ! ,bureau ( ,indian         
,affairs4  7#c7 ,indian res]v$ wat]     
rights settlem5ts ,to provide am\nts to 
complete con/ruction1 plann+1 & design (
 any project1 or to implem5t any        
provision ( ,f$]al law1 t-- 7,a7 settles
 or o!rwise resolves1 9 :ole or 9 "p1   
litigation involv+ ! ,unit$ ,/ates & !  
rights ( "o or m f$]ally recogniz$      
,indian tribes to access1 use1 or manage
 wat] res\rces2 or  7,b7 implem5ts an   
agreem5t approv$ by ,congress pursuant  
to :i* "o or m f$]ally recogniz$ ,indian
 tribes agree to "s limitation on !     
ex]cise ( rights or claims to access1   
use1 or manage wat] res\rces4  7f7      

,annual reports  7#a7 ,9 g5]al ,n lat]  
?an #fj days aft] ! end ( ea* fiscal ye>
 beg9n+ ) fiscal ye> #bjae1 ! ,secret>y 
( ! ,int]ior %all submit to ! ,committee
 on ,appropriations ( ! ,h\se (         
,repres5tatives1 ! ,committee on        
,appropriations ( ! ,s5ate1 & au?oriz+  
committees a report on ! op]ation ( !   
,fund dur+ ! fiscal ye>4  7#b7 ,cont5ts 
,ea* report %all include1 = ! fiscal ye>
 cov]$ by ! report1 ! foll[+3  7,a7 ,a  
/atem5t ( ! am\nts deposit$ into !      
,fund4  7,b7 ,a description ( !         
exp5ditures made f ! ,fund = ! fiscal   
ye>1 includ+ ! purpose ( ! exp5ditures4 
7,c7 ,recomm5dations = additional       
au?orities to fulfill ! purpose ( !     
,fund4  7,d7 ,a /atem5t ( ! balance     
rema9+ 9 ! ,fund at ! end ( ! fiscal    
ye>4  #bjb4 ,s5se ( ,congress reg>d+    
direction ( ,secret>y ( ! ,int]ior ,x is
 ! s5se ( ,congress t ,congress %\ld    
provide direction to ! ,secret>y ( !    
,int]ior ) respect to exp5ditures "u ?is
 title1 includ+-- 7#a7 requirem5ts "u ! 

annual budget submission ( ! ,presid5t2 
7#b7 annual report+ requirem5ts describ+
 f9al allocations2  7#c7 programmatic   
goals to c>ry out ?is title2 &  7#d7    
fund+ prioritization crit]ia to s]ve z a
 me?odology = di/ribut+ funds4  ,,iii   
,en]gy infra/ructure  #cja4 ,en]gy      
,upgrade & ,retr(it ,infra/ructure ,fund
  7a7 ,e/abli%m5t ( ,fund ,!re is       
e/abli%$ 9 ! ,treasury a fund to be kn[n
 z ! ,en]gy ,upgrade & ,retr(it         
,infra/ructure ,fund 7ref]r$ to 9 ?is   
section z ! ,fund71 to be adm9i/]$ by ! 
,secret>y ( ,en]gy1 to be available )\t 
fiscal ye> limitation & n subject to    
appropriation1 = use 9 accordance )     
subsection 7e74  7b7 ,deposits ,= !     
p]iod ( fiscal ye>s #bjae ?r\gh #bjcd1 !
 ,secret>y ( ! ,treasury %all deposit 9 
! ,fund1 out ( am\nts 9 ! ,treasury n   
o!rwise obligat$1 #h1jjj1jjj1jjj4  7c7  
,inve/m5t  7#a7 ,9 g5]al ,! ,secret>y ( 
! ,treasury %all inve/ su* portion ( !  
,fund z is n1 9 ! judgm5t ( ! ,secret>y1
 requir$ to meet curr5t )drawals4  7#b7 

,cr$its to ,fund ,! int]e/ on1 & !      
proce$s f ! sale or r$emption (1 any    
obligations held 9 ! ,fund %all be      
cr$it$ to1 & =m a "p (1 ! ,fund4  7d7   
,prohibition ,am\nts 9 ! ,fund may n be 
made available = any purpose o!r ?an a  
purpose describ$ 9 subsection 7e74  7e7 
,use ( funds  7#a7 ,9 g5]al ,( am\nts 9 
! ,fund1 ! ,secret>y ( ,en]gy may use1 9
 accordance ) ?is title1 su* sums z are 
necess>y to provide grants1 loans1 loan 
gu>antees1 or o!r cr$it f9anc+          
in/rum5ts1 includ+ any su* in/rum5ts "u 
! ,en]gy ,policy ,act ( #bjje 7#db      
,u4,s4,c4 #aehja et seq471 to support   
novel & innovative te*nologies t-- 7,a7 
capture or prev5t c>bon dioxide         
emissions f c>bon-bas$ fuels2  7,b7     
enable ! b5eficial use ( c>bon dioxide &
 o!r gre5h\se gases2  7,c7 enable !     
long-t]m /orage ( c>bon dioxide2  7,d7  
r$uce net c>bon emissions f ! fleet (   
electric g5]ation units 9 a ,/ate or    
region ( ! bulk electric sy/em2 or  7,e7
 con/ruct1 upgrade1 or retr(it electric 

transmission prop]ty t s]ves ! public   
int]e/ by facilitat+ ! deploym5t (      
l[-c>bon en]gy s\rces :ile ensur+       
reliability & r$uc+ conge/ion4  7#b7    
,prioritization ,9 c>ry+ out p>agraph   
7#a71 ! ,secret>y ( ,en]gy %all give    
priority to projects t upgrade or       
retr(it exi/+ infra/ructure = ! g5]ation
 & transmission ( electric p[]4  7#c7   
,comm]cial-scale coal te*nology  7,a7   
,exp5diture ,n less ?an #fj p]c5t (     
am\nts exp5d$ "u ?is subsection %all be 
= comm]cial-scale1 coal-fir$ electric   
g5]ation units-- 7i7 design$ to g5]ate &
 sell electric p[] directly to consum]s 
or = resale2 &  7ii7 ) a c>bon dioxide  
capture & /orage sy/em hav+ a useful    
life ( n few] ?an #ae ye>s4  7,b7       
,eligible projects ,eligible projects "u
 ?is p>agraph include projects =-- 7i7 !
 con/ruction ( new coal-fir$ electric   
g5]ation units2  7ii7 ! retr(itt+ (     
exi/+ coal-fir$ electric g5]ation units2
 or  7iii7 ! con/ruction ( c>bon dioxide
 transmission pipel9es to transport     

c>bon dioxide f c>bon capture &         
seque/ration facilities to-- 7,i7       
seque/ration sites2 or  7,,ii7 sites at 
:i* ! c>bon dioxide w be us$ =          
hydroc>bon recov]y4  7f7 ,annual reports
  7#a7 ,9 g5]al ,n lat] ?an #fj days    
aft] ! end ( ea* fiscal ye> beg9n+ )    
fiscal ye> #bjae1 ! ,secret>y ( ,en]gy  
%all submit to ! ,committee on          
,appropriations ( ! ,h\se (             
,repres5tatives1 ! ,committee on        
,appropriations ( ! ,s5ate1 & au?oriz+  
committees a report on ! op]ation ( !   
,fund dur+ ! fiscal ye>4  7#b7 ,cont5ts 
,ea* report %all include1 = ! fiscal ye>
 cov]$ by ! report1 ! foll[+3  7,a7 ,a  
/atem5t ( ! am\nts deposit$ into !      
,fund4  7,b7 ,a description ( !         
exp5ditures made f ! ,fund = ! fiscal   
ye>1 includ+ ! purpose ( ! exp5ditures4 
7,c7 ,recomm5dations = additional       
au?orities to fulfill ! purpose ( !     
,fund4  7,d7 ,a /atem5t ( ! balance     
rema9+ 9 ! ,fund at ! end ( ! fiscal    
ye>4  #cjb4 ,s5se ( ,congress reg>d+    

direction ( ,secret>y ( ,en]gy ,x is !  
s5se ( ,congress t ,congress %\ld       
provide direction to ! ,secret>y (      
,en]gy ) respect to effects (           
exp5ditures "u ?is title on o!r         
applicable ,f$]al programs & laws1      
includ+-- 7#a7 provisions ( ! ,int]nal  
,rev5ue ,code ( #aihf t affect electric 
p[] g5]ation & transmission2  7#b7 exi/+
 /&>ds ) respect to ! p]c5tage ( c>bon  
dioxide requir$ to be captur$ & /or$ by 
projects t receive ,f$]al funds2 &  7#c7
 liability /&>ds ) respect to ! long-t]m
 /orage ( c>bon dioxide4  ,,iv ,taxation
 ( =eign income  #dja4 ,allocation (    
exp5ses & taxes on basis ( repatriation 
( =eign income  7a7 ,9 g5]al ,"p ,,iii (
 sub*apt] ,n ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] subp>t ,g ! foll[+ new subp>t3  ,h
 ,special ,rules = ,allocation (        
,=eign-,relat$ ,d$uctions  ,sec4 #ige4  
,d$uctions allocat$ to def]r$ =eign     
income may n (fset ,unit$ ,/ates s\rce  
income4  #ige4 ,d$uctions allocat$ to   

def]r$ =eign income may n (fset ,unit$  
,/ates s\rce income  7a7 ,curr5t ye>    
d$uctions ,= purposes ( ?is *apt]1      
=eign-relat$ d$uctions = any taxable    
ye>--  7#a7 %all be tak5 into acc\nt =  
su* taxable ye> only to ! ext5t t su*   
d$uctions are allocable to curr5tly-tax$
 =eign income1 &  7#b7 to ! ext5t n s   
all[$1 %all be tak5 into acc\nt 9       
subsequ5t taxable ye>s z provid$ 9      
subsection 7b74  ,=eign-relat$ d$uctions
 %all be allocat$ to curr5tly-tax$ =eign
 income 9 ! same proportion :i*         
curr5tly-tax$ =eign income be>s to ! sum
 ( curr5tly-tax$ =eign income & def]r$  
=eign income4  7b7 ,d$uctions relat$ to 
repatriat$ def]r$ =eign income  7#a7 ,9 
g5]al ,if !re is repatriat$ =eign income
 = a taxable ye>1 ! portion ( !         
previ\sly def]r$ d$uctions allocat$ to !
 repatriat$ =eign income %all be tak5   
into acc\nt = ! taxable ye> z a d$uction
 allocat$ to income f s\rces outside !  
,unit$ ,/ates4 ,any su* am\nt %all n be 
includ$ 9 =eign-relat$ d$uctions =      

purposes ( apply+ subsection 7a7 to su* 
taxable ye>4  7#b7 ,portion ( previ\sly 
def]r$ d$uctions ,= purposes ( p>agraph 
7#a71 ! portion ( ! previ\sly def]r$    
d$uctions allocat$ to repatriat$ =eign  
income is--  7,a7 ! am\nt :i* be>s !    
same proportion to su* d$uctions1 z     
7,b7 ! repatriat$ income be>s to !      
previ\sly def]r$ =eign income4  7c7     
,def9itions & special rule ,= purposes (
 ?is section--  7#a7 ,=eign-relat$      
d$uctions ,! t]m =eign-relat$ d$uctions 
means ! total am\nt ( d$uctions &       
exp5ses :i* w\ld be allocat$ or         
apportion$ to gross income f s\rces )\t 
! ,unit$ ,/ates = ! taxable ye> if bo? !
 curr5tly-tax$ =eign income & def]r$    
=eign income 7 tak5 into acc\nt4  7#b7  
,curr5tly-tax$ =eign income ,! t]m      
curr5tly-tax$ =eign income means ! am\nt
 ( gross income f s\rces )\t ! ,unit$   
,/ates = ! taxable ye> 7det]m9$ )\t     
reg>d to repatriat$ =eign income = su*  
ye>74  7#c7 ,def]r$ =eign income ,! t]m 
def]r$ =eign income means ! excess (--  

7,a7 ! am\nt t w\ld be includible 9     
gross income "u subp>t ,f ( ?is "p = !  
taxable ye> if--  7i7 all controll$     
=eign corporations 7 treat$ z "o        
controll$ =eign corporation1 &  7ii7 all
 e>n+s & pr(its ( all controll$ =eign   
corporations 7 subp>t ,f income 7z def9$
 9 section #ieb71 ov]  7,b7 ! sum (--   
7i7 all divid5ds receiv$ dur+ ! taxable 
ye> f controll$ =eign corporations1 plus
  7ii7 am\nts includible 9 gross income 
"u section #iea7;a74  7#d7 ,previ\sly   
def]r$ =eign income ,! t]m previ\sly    
def]r$ =eign income means ! aggregate   
am\nt ( def]r$ =eign income = all prior 
taxable ye>s to :i* ?is "p applies1     
det]m9$ z ( ! beg9n+ ( ! taxable ye>1   
r$uc$ by ! repatriat$ =eign income = all
 su* prior taxable ye>s4  7#e7          
,repatriat$ =eign income ,! t]m         
repatriat$ =eign income means ! am\nt   
includ$ 9 gross income on acc\nt (      
di/ributions out ( previ\sly def]r$     
=eign income4  7#f7 ,previ\sly def]r$   
d$uctions ,! t]m previ\sly def]r$       

d$uctions means ! aggregate am\nt (     
=eign-relat$ d$uctions n tak5 into      
acc\nt "u subsection 7a7 = all prior    
taxable ye>s 7det]m9$ z ( ! beg9n+ ( !  
taxable ye>71 r$uc$ by any am\nts tak5  
into acc\nt "u subsection 7b7 = su*     
prior taxable ye>s4  7#g7 ,treatm5t (   
c]ta9 =eign taxes  7,a7 ,paid by        
controll$ =eign corporation ,section #gh
 %all n apply = purposes ( det]m9+      
curr5tly-tax$ =eign income & def]r$     
=eign income4  7,b7 ,paid by taxpay] ,= 
purposes ( det]m9+ curr5tly-tax$ =eign  
income1 gross income f s\rces )\t !     
,unit$ ,/ates %all be r$uc$ by !        
aggregate am\nt ( taxes describ$ 9 !    
applicable p>agraph ( section #ija7;b7  
:i* are paid by ! taxpay] 7)\t reg>d to 
sections #ijb & #ifj7 dur+ ! taxable    
ye>4  7d7 ,application ( section ,?is   
section--  7#a7 %all be appli$ be=e     
subp>t ,a1 &  7#b7 %all be appli$       
sep>ately ) respect to ! categories (   
income specifi$ 9 section #ijd7;d77#a74 
4  7b7 ,cl]ical am5dm5t ,! table (      

subp>ts = "p ,,iii ( subp>t ,n ( *apt]  
#a ( su* ,code is am5d$ by ins]t+ aft] !
 item relat+ to subp>t ,g ! foll[+ new  
item3  ,subp>t ,h4 ,special ,rules =    
,allocation ( ,=eign-,relat$ ,d$uctions 
4  7c7 ,effective date ,! am5dm5ts made 
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ! date ( ! enactm5t (  
?is ,act4  #djb4  ,modifications to     
rules relat+ to inv]t$ corporations  7a7
 ,9 g5]al ,subsection 7b7 ( section     
#ghgd ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ to read z foll[s3  7b7 ,inv]t$
 corporations treat$ z dome/ic          
corporations  7#a7 ,9 g5]al ,not)/&+    
section #ggja7;a77#d71 a =eign          
corporation %all be treat$ = purposes ( 
?is title z a dome/ic corporation if--  
7,a7 su* corporation w\ld be a surrogate
 =eign corporation if subsection 7a77#b7
 7 appli$ by sub/itut+ #hj p]c5t = #fj  
p]c5t1 or  7,b7 su* corporation is an   
inv]t$ dome/ic corporation4  7#b7       
,inv]t$ dome/ic corporation ,= purposes 
( ?is subsection1 a =eign corporation   

%all be treat$ z an inv]t$ dome/ic      
corporation if1 pursuant to a plan 7or a
 s]ies ( relat$ transactions7--  7,a7 ! 
entity completes aft] ,may #h1 #bjad1 ! 
direct or indirect acquisition (--  7i7 
sub/antially all ( ! prop]ties held     
directly or indirectly by a dome/ic     
corporation1 or  7ii7 sub/antially all (
 ! assets (1 or sub/antially all ( !    
prop]ties con/itut+ a trade or bus9ess  
(1 a dome/ic p>tn]%ip1 &  7,b7 aft] !   
acquisition1 ei!r--  7i7 m ?an #ej p]c5t
 ( ! /ock 7by vote or value7 ( ! entity 
is held--  7,i7 9 ! case ( an           
acquisition ) respect to a dome/ic      
corporation1 by =m] %>ehold]s ( !       
dome/ic corporation by reason ( hold+   
/ock 9 ! dome/ic corporation1 or  7,,ii7
 9 ! case ( an acquisition ) respect to 
a dome/ic p>tn]%ip1 by =m] p>tn]s ( !   
dome/ic p>tn]%ip by reason ( hold+ a    
capital or pr(its int]e/ 9 ! dome/ic    
p>tn]%ip1 or  7ii7 ! managem5t & control
 ( ! exp&$ affiliat$ gr\p :i* includes !
 entity occurs1 directly or indirectly1 

prim>ily )9 ! ,unit$ ,/ates1 & su* exp&$
 affiliat$ gr\p has significant dome/ic 
bus9ess activities4  7#c7 ,exception =  
corporations ) sub/antial bus9ess       
activities 9 =eign c\ntry ( organization
 ,a =eign corporation describ$ 9        
p>agraph 7#b7 %all n be treat$ z an     
inv]t$ dome/ic corporation if aft] !    
acquisition ! exp&$ affiliat$ gr\p :i*  
includes ! entity has sub/antial bus9ess
 activities 9 ! =eign c\ntry 9 :i* or "u
 ! law ( :i* ! entity is creat$ or      
organiz$ :5 comp>$ to ! total bus9ess   
activities ( su* exp&$ affiliat$ gr\p4  
,= purposes ( subsection                
7a77#b77;,b77iii7 & ! prec$+ s5t5ce1 !  
t]m sub/antial bus9ess activities %all h
 ! mean+ giv5 su* t]m "u regulations 9  
effect on ,may #h1 #bjad1 except t !    
,secret>y may issue regulations increas+
 ! ?re%old p]c5t 9 any ( ! te/s "u su*  
regulations = det]m9+ if bus9ess        
activities con/itute sub/antial bus9ess 
activities = purposes ( ?is p>agraph4   
7#d7 ,managem5t & control ,= purposes ( 

p>agraph 7#b77;,b77ii7--  7,a7 ,9 g5]al 
,! ,secret>y %all prescribe regulations 
= purposes ( det]m9+ cases 9 :i* !      
managem5t & control ( an exp&$ affiliat$
 gr\p is to be treat$ z occurr+1        
directly or indirectly1 prim>ily )9 !   
,unit$ ,/ates4 ,! regulations prescrib$ 
"u ! prec$+ s5t5ce %all apply to p]iods 
aft] ,may #h1 #bjad4  7,b7 ,executive   
(fic]s & s5ior managem5t ,su*           
regulations %all provide t ! managem5t &
 control ( an exp&$ affiliat$ gr\p %all 
be treat$ z occurr+1 directly or        
indirectly1 prim>ily )9 ! ,unit$ ,/ates 
if sub/antially all ( ! executive (fic]s
 & s5ior managem5t ( ! exp&$ affiliat$  
gr\p :o ex]cise day-to-day              
responsibility = mak+ decisions involv+ 
/rategic1 f9ancial1 & op]ational        
policies ( ! exp&$ affiliat$ gr\p are   
bas$ or prim>ily locat$ )9 ! ,unit$     
,/ates4 ,individuals :o 9 fact ex]cise  
su* day-to-day responsibilities %all be 
treat$ z executive (fic]s & s5ior       
managem5t reg>dless ( _! title4  7#e7   

,significant dome/ic bus9ess activities 
,= purposes ( p>agraph 7#b77;,b77ii71 an
 exp&$ affiliat$ gr\p has significant   
dome/ic bus9ess activities if at lea/   
#be p]c5t (--  7,a7 ! employees ( ! gr\p
 are bas$ 9 ! ,unit$ ,/ates1  7,b7 !    
employee comp5sation incurr$ by ! gr\p  
is incurr$ ) respect to employees bas$ 9
 ! ,unit$ ,/ates1  7,c7 ! assets ( !    
gr\p are locat$ 9 ! ,unit$ ,/ates1 or   
7,d7 ! income ( ! gr\p is d]iv$ 9 !     
,unit$ ,/ates1  det]m9$ 9 ! same mann] z
 su* det]m9ations are made = purposes ( 
det]m9+ sub/antial bus9ess activities "u
 regulations ref]r$ to 9 p>agraph 7#c7 z
 9 effect on ,may #h1 #bjad1 b appli$ by
 treat+ all ref]5ces 9 su* regulations  
to =eign c\ntry & relevant =eign c\ntry 
z ref]5ces to ! ,unit$ ,/ates4 ,!       
,secret>y may issue regulations decreas+
 ! ?re%old p]c5t 9 any ( ! te/s "u su*  
regulations = det]m9+ if bus9ess        
activities con/itute significant dome/ic
 bus9ess activities = purposes ( ?is    
p>agraph4  4  7b7 ,con=m+ am5dm5ts  7#a7

 ,clause 7i7 ( section                  
#ghgd7;a77#b77;,b7 ( su* ,code is am5d$ 
by /rik+ aft] ,m>* #d1 #bjjc1 & ins]t+  
aft] ,m>* #d1 #bjjc1 & be=e ,may #i1    
#bjad14  7#b7 ,subsection 7c7 ( section 
#ghgd ( su* ,code is am5d$--  7,a7 9    
p>agraph 7#b7--  7i7 by /rik+ subsection
 7a77#b77;,b77ii7 & ins]t+ subsections  
7a77#b77;,b77ii7 & 7b77#b77;,b77i71 &   
7ii7 by ins]t+ or 7b77#b77;,a7 aft]     
7a77#b77;,b77i7 9 subp>agraph 7,b71     
7,b7 9 p>agraph 7#c71 by ins]t+ or      
7b77#b77;,b77i71 z ! case may be1 aft]  
7a77#b77;,b77ii71  7,c7 9 p>agraph 7#e71
 by /rik+ subsection 7a77#b77;,b77ii7 & 
ins]t+ subsections 7a77#b77;,b77ii7 &   
7b77#b77;,b77i71 &  7,d7 9 p>agraph     
7#f71 by ins]t+ or inv]t$ dome/ic       
corporation1 z ! case may be1 aft]      
surrogate =eign corporation4  7c7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s end+ 
aft] ,may #h1 #bjad4  ,v ,deficit       
,r$uction  #eja4 ,deficit r$uction ,=   
purposes ( ! am\nt ( any increase 9     

rev5ue to ! ,treasury by reason ( !     
provisions ( ?is ,act & ! am5dm5ts made 
by ?is ,act1 #a1jjj1jjj1jjj ( su* am\nt 
%all be1 at su* times & 9 su* mann] z   
det]m9$ appropriate by ! ,secret>y ( !  
,treasury 7or ! ,secret>y's delegate71  
deposit$ & cr$it$ z g5]al rev5ue ( !    
,treasury = ! purposes ( deficit        
r$uction & %all n be available =        
obligation4