,,ii  #aac? ,,congress  #a/ ,session    
,s4 #bgh  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #aa1 #bjac    
,mr4 ,:iteh\se 7= himself1 ,mr4 ,h>k91  
,mr4 ,s&]s1 ,mr4 ,lev91 & ,mr4 ,m]kley7 
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to replace !       
,budget ,control ,act seque/] = fiscal  
ye> #bjac by elim9at+ tax loopholes4    
#a4 ,%ort title2 table ( cont5ts  7a7   
,%ort title ,?is ,act may be cit$ z !   
,job ,pres]vation & ,seque/] ,replacem5t
 ,act ( #bjac4  7b7 ,table ( cont5ts ,! 
table ( cont5ts ( ?is ,act is z foll[s3 
,sec4 #a4 ,%ort title2 table ( cont5ts4 
,,title ,i--,elim9ation ( seque/ration =
 fiscal ye> #bjac ,sec4 #aja4 ,no       
seque/ration = #bjac4 ,,title           
,,ii--,elim9ation ( ,tax ,loopholes =   
,high-,income ,taxpay]s ,sec4 #bja4     
,m9imum tax = high-income e>n]s4 ,sec4  
#bjb4 ,requir+ high-income pr(essionals 
to pay _! payroll taxes4 ,sec4 #bjc4    
,elim9ation ( private jet giveaway4     

,,title ,,iii--,elim9ation ( tax        
loopholes = (f%or+ manufactur]s ,sec4   
#cja4 ,end+ tax breaks = (f%or+         
manufactur]s4 ,,title ,,iv--,elim9ation 
( tax loopholes = oil & gas companies   
,sec4 #dja4 ,modifications ( =eign tax  
cr$it rules applicable to major         
integrat$ oil companies :i* are dual    
capacity taxpay]s4 ,sec4 #djb4          
,limitation on section #aii d$uction    
attributable to oil1 natural gas1 or    
prim>y products !re(4 ,sec4 #djc4       
,limitation on d$uction = intangible    
drill+ & developm5t co/s4 ,sec4 #djd4   
,limitation on p]c5tage depletion       
all[ance = oil & gas wells4 ,sec4 #dje4 
,limitation on d$uction = t]ti>y        
injectants4 ,sec4 #djf4 ,repeal ( out]  
,cont95tal ,%elf deep wat] & deep gas   
royalty relief4  ,i ,elim9ation (       
seque/ration = fiscal ye> #bjac  #aja4  
,no seque/ration = #bjac  7a7 ,9 g5]al  
,section #bea;,a7#c77;,e7 ( ! ,balanc$  
,budget & ,em]g5cy ,deficit ,control    
,act ( #aihe 7#b ,u4,s4,c4              

#ija;a7#c77;,e77 is am5d$ by /rik+      
#bd1jjj1jjj1jjj & ins]t+                
#aji1cjj1jjj1jjj4  7b7 ,repeal ( ,budget
 ,control ,act seque/] = fiscal ye>     
#bjac  7#a7 ,repeal ,section #ija7;e7 ( 
! ,am]ican ,taxpay] ,relief ,act ( #bjab
 7,public ,law #aab-bdj7 is repeal$4    
7#b7 ,,bb$ca ,section #bea;,a ( !       
,balanc$ ,budget & ,em]g5cy ,deficit    
,control ,act 7#b ,u4,s4,c4 #ija;a7 is  
am5d$--  7,a7 9 p>agraph 7#d71 by /rik+ 
,on ,m>* #a1 #bjac1 = fiscal ye> #bjac1 
& 9 & ins]t+ ,92  7,b7 9 p>agraph 7#e71 
by /rik+ #bjac & ins]t+ #bjad2  7,c7 9  
p>agraph 7#f71 by /rik+ #bjac & ins]t+  
#bjad2 &  7,d7 9 p>agraph 7#g7--  7i7 by
 /rik+ r$uctions4-- & all t foll[s ?r\gh
 ,on ! date ( ! submission & ins]t+     
r$uctions4--,on ! date ( ! submission2 &
  7ii7 by r$esignat+ clauses 7i7 & 7ii7 
z subp>agraphs 7,a7 & 7,b71             
respectively4  ,,ii ,elim9ation ( ,tax  
,loopholes = ,high-,income ,taxpay]s    
#bja4 ,m9imum tax = high-income e>n]s   
7a7 ,9 g5]al ,sub*apt] ,a ( *apt] #a is 

am5d$ by add+ at ! end ! foll[+ new "p3 
,,viii ,fair %>e tax on high-income     
taxpay]s  ,sec4 #ei;,b4 ,fair %>e tax4  
#ei;,b4 ,fair %>e tax  7a7 ,g5]al rule  
7#a7 ,phase-9 ( tax ,9 ! case ( any     
high-income taxpay]1 !re is h]eby impos$
 = a taxable ye> 79 addition to any o!r 
tax impos$ by ?is subtitle7 a tax equal 
to ! product (--  7,a7 ! am\nt det]m9$  
"u p>agraph 7#b71 &  7,b7 a fraction 7n 
to exce$ #a7--  7i7 ! num]ator ( :i* is 
! excess (--  7,i7 ! taxpay]'s adju/$   
gross income1 ov]  7,,ii7 ! doll> am\nt 
9 effect "u subsection 7c77#a71 &  7ii7 
! d5om9ator ( :i* is ! doll> am\nt 9    
effect "u subsection 7c77#a74  7#b7     
,am\nt ( tax ,! am\nt ( tax det]m9$ "u  
?is p>agraph is an am\nt equal to !     
excess 7if any7 (--  7,a7 ! t5tative    
fair %>e tax = ! taxable ye>1 ov]  7,b7 
! excess (--  7i7 ! sum (--  7,i7 !     
regul> tax liability 7z def9$ 9 section 
#bf7;b77 = ! taxable ye>1 det]m9$ )\t   
reg>d to any tax liability det]m9$ "u   
?is section1  7,,ii7 ! tax impos$ by    

section #ee = ! taxable ye>1 plus       
7,,iii7 ! payroll tax = ! taxable ye>1  
ov]  7ii7 ! cr$its all[able "u "p ,,iv (
 sub*apt] ,a 7o!r ?an sections #bg7;a71 
#ca1 & #cd74  7b7 ,t5tative fair %>e tax
 ,= purposes ( ?is section--  7#a7 ,9   
g5]al ,! t5tative fair %>e tax = !      
taxable ye> is #cj p]c5t ( ! excess (-- 
7,a7 ! adju/$ gross income ( ! taxpay]1 
ov]  7,b7 ! modifi$ *>itable            
contribution d$uction = ! taxable ye>4  
7#b7 ,modifi$ *>itable contribution     
d$uction ,= purposes ( p>agraph 7#a7--  
7,a7 ,9 g5]al ,! modifi$ *>itable       
contribution d$uction = any taxable ye> 
is an am\nt equal to ! am\nt :i* be>s ! 
same ratio to ! d$uction all[able "u    
section #agj 7section #fdb7;c7 9 ! case 
( a tru/ or e/ate7 = su* taxable ye> z--
  7i7 ! am\nt ( itemiz$ d$uctions       
all[able "u ! regul> tax 7z def9$ 9     
section #ee7 = su* taxable ye>1 det]m9$ 
aft] ! application ( section #fh1 be>s  
to  7ii7 su* am\nt1 det]m9$ be=e !      
application ( section #fh4  7,b7        

,taxpay] mu/ itemize ,9 ! case ( any    
individual :o does n elect to itemize   
d$uctions = ! taxable ye>1 ! modifi$    
*>itable contribution d$uction %all be  
z]o4  7c7 ,high-,income taxpay] ,=      
purposes ( ?is section--  7#a7 ,9 g5]al 
,! t]m high-income taxpay] means1 )     
respect to any taxable ye>1 any taxpay] 
7o!r ?an a corporation7 ) an adju/$     
gross income = su* taxable ye> 9 excess 
( #a1jjj1jjj 7#ej p]c5t ( su* am\nt 9 ! 
case ( a m>ri$ individual :o files a    
sep>ate return74  7#b7 ,inflation       
adju/m5t  7,a7 ,9 g5]al ,9 ! case ( a   
taxable ye> beg9n+ aft] #bjac1 !        
#a1jjj1jjj am\nt "u p>agraph 7#a7 %all  
be increas$ by an am\nt equal to--  7i7 
su* doll> am\nt1 multipli$ by  7ii7 !   
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye> 9 :i* !       
taxable ye> beg9s1 det]m9$ by sub/itut+ 
cal5d> ye> #bjab = cal5d> ye> #aiib 9   
subp>agraph 7,b7 !re(4  7,b7 ,r\nd+ ,if 
any am\nt z adju/$ "u subp>agraph 7,a7  
is n a multiple ( #aj1jjj1 su* am\nt    

%all be r\nd$ to ! next l[e/ multiple ( 
#aj1jjj4  7d7 ,payroll tax ,= purposes (
 ?is section1 ! payroll tax = any       
taxable ye> is an am\nt equal to !      
excess (--  7#a7 ! taxes impos$ on !    
taxpay] "u sections #adja1 #adaa1 #caja1
 #cbja1 & #cbaa7;a7 7to ! ext5t su* tax 
is attributable to ! rate ( tax 9 effect
 "u section #caja7 ) respect to su*     
taxable ye> or wages or comp5sation     
receiv$ dur+ su* taxable ye>1 ov]  7#b7 
! d$uction all[able "u section #afd7;f7 
= su* taxable ye>4  7e7 ,special rule = 
e/ates & tru/s ,= purposes ( ?is        
section1 9 ! case ( an e/ate or tru/1   
adju/$ gross income %all be comput$ 9 ! 
mann] describ$ 9 section #fg7;e74  7f7  
,n treat$ z tax impos$ by ?is *apt] =   
c]ta9 purposes ,! tax impos$ "u ?is     
section %all n be treat$ z tax impos$ by
 ?is *apt] = purposes ( det]m9+ ! am\nt 
( any cr$it "u ?is *apt] 7o!r ?an !     
cr$it all[$ "u section #bg7;a77 or =    
purposes ( section #ee4  4  7b7 ,cl]ical
 am5dm5t ,! table ( p>ts = sub*apt] ,a (

 *apt] #a is am5d$ by add+ at ! end !   
foll[+ new item3  ,"p ,,viii--,fair %>e 
tax on high-,income taxpay]s  4  7c7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjab4  #bjb4 
,requir+ high-income pr(essionals to pay
 _! payroll taxes  7a7 ,9 g5]al ,section
 #adjb ( ! ,int]nal ,rev5ue ,code (     
#aihf is am5d$ by add+ at ! end ! foll[+
 new subsection3  7m7 ,special rules =  
pr(essional s]vice bus9esses  7#a7      
,%>ehold]s provid+ s]vices to specifi$  
,s corporations  7,a7 ,9 g5]al ,9 ! case
 ( an applicable %>ehold] :o provides   
sub/antial s]vices ) respect to a       
pr(essional s]vice bus9ess ref]r$ to 9  
subp>agraph 7,c7 ( a specifi$ ,s        
corporation--  7i7 su* %>ehold] %all be 
treat$ z engag$ 9 ! trade or bus9ess (  
su* pr(essional s]vice bus9ess ) respect
 to items ( income or loss describ$ 9   
section #acff :i* are attributable to   
su* bus9ess1 &  7ii7 su* %>ehold]'s net 
e>n+s f self-employm5t %all include su* 

%>ehold]'s pro rata %>e ( su* items (   
income or loss1 except t 9 comput+ su*  
pro rata %>e ( su* items ! exceptions   
provid$ 9 subsection 7a7 %all apply4    
7,b7 ,treatm5t ( family memb]s ,except z
 o!rwise provid$ by ! ,secret>y1 !      
applicable %>ehold]'s pro rata %>e (    
items ref]r$ to 9 subp>agraph 7,a7 %all 
be increas$ by ! pro rata %>e ( su*     
items ( ea* memb] ( su* applicable      
%>ehold]'s family 7)9 ! mean+ ( section 
#cah7;a77#a77 :o does n provide         
sub/antial s]vices ) respect to su*     
pr(essional s]vice bus9ess4  7,c7       
,specifi$ ,s corporation ,= purposes (  
?is subsection1 ! t]m specifi$ ,s       
corporation means--  7i7 any ,s         
corporation :i* is a p>tn] 9 a p>tn]%ip 
:i* is engag$ 9 a pr(essional s]vice    
bus9ess if sub/antially all ( !         
activities ( su* ,s corporation are     
p]=m$ 9 connection ) su* p>tn]%ip1 &    
7ii7 any o!r ,s corporation :i* is      
engag$ 9 a pr(essional s]vice bus9ess if
 #ge p]c5t or m ( ! gross income ( su*  

bus9ess is attributable to s]vice ( #c  
or few] %>ehold]s ( su* corporation4    
7,d7 ,applicable %>ehold] ,= purposes ( 
?is p>agraph1 ! t]m applicable %>ehold] 
means any %>ehold] ^: modifi$ adju/$    
gross income = ! taxable ye> exce$s--   
7i7 9 ! case ( a %>ehold] mak+ a jo9t   
return "u section #fjac or a surviv+    
sp\se 7z def9$ 9 section #b7;a771       
#bej1jjj1  7ii7 9 ! case ( a m>ri$      
%>ehold] 7z def9$ 9 section #ggjc7 fil+ 
a sep>ate return1 half ( ! doll> am\nt  
det]m9$ "u clause 7i71 &  7iii7 9 any   
o!r case1 #bjj1jjj4  7#b7 ,p>tn]s  7,a7 
,9 g5]al ,9 ! case ( any p>tn]%ip :i* is
 engag$ 9 a pr(essional s]vice bus9ess1 
subsection 7a77#ac7 %all n apply to any 
applicable p>tn] :o provides sub/antial 
s]vices ) respect to su* pr(essional    
s]vice bus9ess4  7,b7 ,applicable p>tn] 
,= purposes ( ?is p>agraph1 ! t]m       
applicable p>tn] means any p>tn] ^:     
modifi$ adju/$ gross income = ! taxable 
ye> exce$s--  7i7 9 ! case ( a p>tn]    
mak+ a jo9t return "u section #fjac or a

 surviv+ sp\se 7z def9$ 9 section       
#b7;a771 #bej1jjj1  7ii7 9 ! case ( a   
m>ri$ p>tn] 7z def9$ 9 section #ggjc7   
fil+ a sep>ate return1 half ( ! doll>   
am\nt det]m9$ "u clause 7i71 &  7iii7 9 
any o!r case1 #bjj1jjj4  7#c7           
,pr(essional s]vice bus9ess ,= purposes 
( ?is subsection1 ! t]m pr(essional     
s]vice bus9ess means any trade or       
bus9ess 7or portion !re(7 provid+       
s]vices 9 ! fields ( heal?1 law1 lobby+1
 eng9e]+1 ar*itecture1 acc\nt+1 actu>ial
 sci5ce1 p]=m+ arts1 consult+1 a?letics1
 inve/m5t advice or managem5t1 or       
brok]age s]vices4  7#d7 ,modifi$ adju/$ 
gross income ,= purposes ( ?is          
subsection1 ! t]m modifi$ adju/$ gross  
income means adju/$ gross income--  7,a7
 det]m9$ )\t reg>d to any d$uction all[$
 "u section #afd7;f71 &  7,b7 increas$  
by ! am\nt exclud$ f gross income "u    
section #iaa7;a77#a74  7#e7 ,regulations
 ,! ,secret>y %all prescribe su*        
regulations z may be necess>y or        
appropriate to c>ry out ! purposes ( ?is

 subsection1 includ+ regulations :i*    
prev5t ! avoidance ( ! purposes ( ?is   
subsection ?r\gh ti]$ entities or       
o!rwise4  7#f7 ,cross ref]5ce ,=        
employm5t tax treatm5t ( wages paid to  
%>ehold]s ( ,s corporations1 see        
subtitle ,c4  4  7b7 ,con=m+ am5dm5t    
,section #baa ( ! ,social ,security ,act
 is am5d$ by add+ at ! end ! foll[+ new 
subsection3  7l7 ,special rules =       
pr(essional s]vice bus9esses  7#a7      
,%>ehold]s provid+ s]vices to specifi$  
,s corporations  7,a7 ,9 g5]al ,9 ! case
 ( an applicable %>ehold] :o provides   
sub/antial s]vices ) respect to a       
pr(essional s]vice bus9ess ref]r$ to 9  
subp>agraph 7,c7 ( a specifi$ ,s        
corporation--  7i7 su* %>ehold] %all be 
treat$ z engag$ 9 ! trade or bus9ess (  
su* pr(essional s]vice bus9ess ) respect
 to items ( income or loss describ$ 9   
section #acff ( ! ,int]nal ,rev5ue ,code
 ( #aihf :i* are attributable to su*    
bus9ess1 &  7ii7 su* %>ehold]'s net     
e>n+s f self-employm5t %all include su* 

%>ehold]'s pro rata %>e ( su* items (   
income or loss1 except t 9 comput+ su*  
pro rata %>e ( su* items ! exceptions   
provid$ 9 subsection 7a7 %all apply4    
7,b7 ,treatm5t ( family memb]s ,except z
 o!rwise provid$ by ! ,secret>y ( !     
,treasury1 ! applicable %>ehold]'s pro  
rata %>e ( items ref]r$ to 9 subp>agraph
 7,a7 %all be increas$ by ! pro rata %>e
 ( su* items ( ea* memb] ( su*          
applicable %>ehold]'s family 7)9 ! mean+
 ( section #cah7;a77#a7 ( ! ,int]nal    
,rev5ue ,code ( #aihf7 :o does n provide
 sub/antial s]vices ) respect to su*    
pr(essional s]vice bus9ess4  7,c7       
,specifi$ ,s corporation ,= purposes (  
?is subsection1 ! t]m specifi$ ,s       
corporation means--  7i7 any ,s         
corporation 7z def9$ 9 section #acfa7;a7
 ( ! ,int]nal ,rev5ue ,code ( #aihf7 :i*
 is a p>tn] 9 a p>tn]%ip :i* is engag$ 9
 a pr(essional s]vice bus9ess if        
sub/antially all ( ! activities ( su* ,s
 corporation are p]=m$ 9 connection )   
su* p>tn]%ip1 &  7ii7 any o!r ,s        

corporation 7z s def9$7 :i* is engag$ 9 
a pr(essional s]vice bus9ess if #ge     
p]c5t or m ( ! gross income ( su*       
bus9ess is attributable to s]vice ( #c  
or few] %>ehold]s ( su* corporation4    
7,d7 ,applicable %>ehold] ,= purposes ( 
?is p>agraph1 ! t]m applicable %>ehold] 
means any %>ehold] ^: modifi$ adju/$    
gross income = ! taxable ye> exce$s--   
7i7 9 ! case ( a %>ehold] mak+ a jo9t   
return "u section #fjac ( ! ,int]nal    
,rev5ue ,code ( #aihf or a surviv+ sp\se
 7z def9$ 9 section #b7;a7 ( su* ,code71
 #bej1jjj1  7ii7 9 ! case ( a m>ri$     
%>ehold] 7z def9$ 9 section #ggjc ( su* 
,code7 fil+ a sep>ate return1 half ( !  
doll> am\nt det]m9$ "u clause 7i71 &    
7iii7 9 any o!r case1 #bjj1jjj4  7#b7   
,p>tn]s  7,a7 ,9 g5]al ,9 ! case ( any  
p>tn]%ip :i* is engag$ 9 a pr(essional  
s]vice bus9ess1 subsection 7a77#ab7 %all
 n apply to any applicable p>tn] :o     
provides sub/antial s]vices ) respect to
 su* pr(essional s]vice bus9ess4  7,b7  
,applicable p>tn] ,= purposes ( ?is     

p>agraph1 ! t]m applicable p>tn] means  
any p>tn] ^: modifi$ adju/$ gross income
 = ! taxable ye> exce$s--  7i7 9 ! case 
( a p>tn] mak+ a jo9t return "u section 
#fjac ( ! ,int]nal ,rev5ue ,code ( #aihf
 or a surviv+ sp\se 7z def9$ 9 section  
#b7;a7 ( su* ,code71 #bej1jjj1  7ii7 9 !
 case ( a m>ri$ p>tn] 7z def9$ 9 section
 #ggjc ( su* ,code7 fil+ a sep>ate      
return1 half ( ! doll> am\nt det]m9$ "u 
clause 7i71 &  7iii7 9 any o!r case1    
#bjj1jjj4  7#c7 ,pr(essional s]vice     
bus9ess ,= purposes ( ?is subsection1 ! 
t]m pr(essional s]vice bus9ess means any
 trade or bus9ess 7or portion !re(7     
provid+ s]vices 9 ! fields ( heal?1 law1
 lobby+1 eng9e]+1 ar*itecture1 acc\nt+1 
actu>ial sci5ce1 p]=m+ arts1 consult+1  
a?letics1 inve/m5t advice or managem5t1 
or brok]age s]vices4  7#d7 ,modifi$     
adju/$ gross income ,= purposes ( ?is   
subsection1 ! t]m modifi$ adju/$ gross  
income means adju/$ gross income z      
det]m9$ "u section #fb ( ! ,int]nal     
,rev5ue ,code ( #aihf--  7,a7 det]m9$   

)\t reg>d to any d$uction all[$ "u      
section #afd7;f7 ( su* ,code1 &  7,b7   
increas$ by ! am\nt exclud$ f gross     
income "u section #iaa7;a77#a7 ( su*    
,code4  4  7c7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjab4  #bjc4 ,elim9ation ( private
 jet giveaway  7a7 ,9 g5]al ,subp>agraph
 7,c7 ( section #afh7;e77#c7 ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ & at ! end ( clause 7iv71 by   
r$esignat+ clause 7v7 z clause 7vi71 &  
by ins]t+ aft] clause 7iv7 ! foll[+ new 
clause3  7v7 any g5]al aviation         
aircraft1 &  4  7b7 ,class ,life        
,p>agraph 7#c7 ( section #afh7;g7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] subp>agraph 7,e7 ! foll[+
 new subp>agraph3  7,f7 ,g5]al aviation 
aircraft ,9 ! case ( any g5]al aviation 
aircraft1 ! recov]y p]iod us$ = purposes
 ( p>agraph 7#b7 %all be #ab ye>s4  4   
7c7 ,g5]al aviation aircraft ,subsection
 7i7 ( section #afh ( ! ,int]nal ,rev5ue

 ,code ( #aihf is am5d$ by ins]t+ aft]  
p>agraph 7#ai7 ! foll[+ new p>agraph3   
7#bj7 ,g5]al aviation aircraft ,! t]m   
g5]al aviation aircraft means any       
airplane or helicopt] 7includ+ airframes
 & eng9es7 n us$ 9 comm]cial or contract
 c>ry+ ( pass5g]s or freight1 b :i*     
prim>ily engages 9 ! c>ry+ ( pass5g]s4  
4  7d7 ,effective date ,?is section %all
 be effective = prop]ty plac$ 9 s]vice  
aft] ,decemb] #ca1 #bjab4  ,,iii        
,elim9ation ( tax loopholes = (f%or+    
manufactur]s  #cja4 ,end+ tax breaks =  
(f%or+ manufactur]s  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  ,,iv ,elim9ation (   
tax loopholes = oil & gas companies     
#dja4 ,modifications ( =eign tax cr$it  
rules applicable to major integrat$ oil 

companies :i* are dual capacity taxpay]s
  7a7 ,9 g5]al ,section #ija ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by r$esignat+ subsection 7n7 z          
subsection 7o7 & by ins]t+ aft]         
subsection 7m7 ! foll[+ new subsection3 
7n7 ,special rules relat+ to major      
integrat$ oil companies :i* are dual    
capacity taxpay]s  7#a7 ,g5]al rule     
,not)/&+ any o!r provision ( ?is *apt]1 
any am\nt paid or accru$ by a dual      
capacity taxpay] :i* is a major         
integrat$ oil company 7z def9$ 9 section
 #afg7;h77#e77;,b77 to a =eign c\ntry or
 possession ( ! ,unit$ ,/ates = any     
p]iod %all n be consid]$ a tax--  7,a7  
if1 = su* p]iod1 ! =eign c\ntry or      
possession does n impose a g5]ally      
applicable income tax1 or  7,b7 to !    
ext5t su* am\nt exce$s ! am\nt 7det]m9$ 
9 accordance ) regulations7 :i*--  7i7  
is paid by su* dual capacity taxpay]    
pursuant to ! g5]ally applicable income 
tax impos$ by ! c\ntry or possession1 or
  7ii7 w\ld be paid if ! g5]ally        

applicable income tax impos$ by ! c\ntry
 or possession 7 applicable to su* dual 
capacity taxpay]4  ,no?+ 9 ?is p>agraph 
%all be con/ru$ to imply ! prop]        
treatm5t ( any su* am\nt n 9 excess ( ! 
am\nt det]m9$ "u subp>agraph 7,b74  7#b7
 ,dual capacity taxpay] ,= purposes (   
?is subsection1 ! t]m dual capacity     
taxpay] means1 ) respect to any =eign   
c\ntry or possession ( ! ,unit$ ,/ates1 
a p]son :o--  7,a7 is subject to a levy 
( su* c\ntry or possession1 &  7,b7     
receives 7or w receive7 directly or     
indirectly a specific economic b5efit 7z
 det]m9$ 9 accordance ) regulations7 f  
su* c\ntry or possession4  7#c7 ,g5]ally
 applicable income tax ,= purposes ( ?is
 subsection--  7,a7 ,9 g5]al ,! t]m     
g5]ally applicable income tax means an  
income tax 7or a s]ies ( income taxes7  
:i* is g5]ally impos$ "u ! laws ( a     
=eign c\ntry or possession on income    
d]iv$ f ! conduct ( a trade or bus9ess  
)9 su* c\ntry or possession4  7,b7      
,exceptions ,su* t]m %all n include a   

tax unless x has sub/antial application1
 by its t]ms & 9 practice1 to--  7i7    
p]sons :o are n dual capacity taxpay]s1 
&  7ii7 p]sons :o are citiz5s or        
resid5ts ( ! =eign c\ntry or possession4
  4  7b7 ,effective ,date  7#a7 ,9 g5]al
 ,! am5dm5ts made by ?is section %all   
apply to taxes paid or accru$ 9 taxable 
ye>s beg9n+ aft] ! date ( ! enactm5t (  
?is ,act4  7#b7 ,contr>y treaty         
obligations upheld ,! am5dm5ts made by  
?is section %all n apply to ! ext5t     
contr>y to any treaty obligation ( !    
,unit$ ,/ates4  #djb4 ,limitation on    
section #aii d$uction attributable to   
oil1 natural gas1 or prim>y products    
!re(  7a7 ,d5ial ( d$uction ,p>agraph   
7#d7 ( section #aii7;c7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subp>agraph3  7,e7
 ,special rule = c]ta9 oil & gas income 
,9 ! case ( any taxpay] :o is a major   
integrat$ oil company 7z def9$ 9 section
 #afg7;h77#e77;,b77 = ! taxable ye>1 !  
t]m dome/ic production gross receipts   

%all n include gross receipts f !       
production1 transportation1 or          
di/ribution ( oil1 natural gas1 or any  
prim>y product 7)9 ! mean+ ( subsection 
7d77#i77 !re(4  4  7b7 ,effective date  
,! am5dm5t made by ?is section %all     
apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjab4  #djc4 ,limitation 
on d$uction = intangible drill+ &       
developm5t co/s  7a7 ,9 g5]al ,section  
#bfc7;c7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new s5t5ce3 ,?is subsection %all n     
apply to am\nts paid or incurr$ by a    
taxpay] 9 any taxable ye> 9 :i* su*     
taxpay] is a major integrat$ oil company
 7z def9$ 9 section #afg7;h77#e77;,b7744
  7b7 ,effective date ,! am5dm5t made by
 ?is section %all apply to am\nts paid  
or incurr$ 9 taxable ye>s beg9n+ aft]   
,decemb] #ca1 #bjab4  #djd4 ,limitation 
on p]c5tage depletion all[ance = oil &  
gas wells  7a7 ,9 g5]al ,section #fac;,a
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by add+ at ! end ! foll[+ new     

subsection3  7f7 ,application ) respect 
to major integrat$ oil companies ,9 !   
case ( any taxable ye> 9 :i* ! taxpay]  
is a major integrat$ oil company 7z     
def9$ 9 section #afg7;h77#e77;,b771 !   
all[ance = p]c5tage depletion %all be   
z]o4  4  7b7 ,effective date ,! am5dm5t 
made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjab4  #dje4 ,limitation on d$uction = 
t]ti>y injectants  7a7 ,9 g5]al ,section
 #aic ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ by add+ at ! end ! foll[+ new 
subsection3  7d7 ,application ) respect 
to major integrat$ oil companies ,?is   
section %all n apply to am\nts paid or  
incurr$ by a taxpay] 9 any taxable ye> 9
 :i* su* taxpay] is a major integrat$   
oil company 7z def9$ 9 section          
#afg7;h77#e77;,b774  4  7b7 ,effective  
date ,! am5dm5t made by ?is section %all
 apply to am\nts paid or incurr$ 9      
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjab4  #djf4 ,repeal ( out] ,cont95tal 
,%elf deep wat] & deep gas royalty      

relief  7a7 ,9 g5]al ,sections #cdd &   
#cde ( ! ,en]gy ,policy ,act ( #bjje    
7#db ,u4,s4,c4 #aeijd1 #aeije7 are      
repeal$4  7b7 ,adm9i/ration ,! ,secret>y
 ( ! ,int]ior %all n be requir$ to      
provide = royalty relief 9 ! lease sale 
t]ms beg9n+ ) ! fir/ lease sale held on 
or aft] ! date ( enactm5t ( ?is ,act =  
:i* a f9al notice ( sale has n be5      
publi%$4