,,ii #aacth ,,congress #ast ,session ,s4 #ccg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #ad1 #bjac ,ms4 ,stabenow 7for herself1 ,mr4 ,rockefeller1 ,mrs4 ,mc,caskill1 ,mr4 ,durbin1 ,mr4 ,whitehouse1 ,ms4 ,klobuchar1 and ,mr4 ,blumenthal7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to provide an incentive for businesses to bring jobs back to ,america4 #a4 ,short title ,this ,act may be cited as the ,bring ,jobs ,home ,act4 #b4 ,credit for insourcing expenses 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,s4 ,credit for insourcing expenses 7a7 ,in general ,for purposes of section #ch1 the insourcing expenses credit for any taxable year is an amount equal to #bj percent of the eligible insourcing expenses of the taxpayer which are taken into account in such taxable year under subsection 7d74 7b7 ,eligible insourcing expenses ,for purposes of this section-- 7#a7 ,in general ,the term eligible insourcing expenses means-- 7,a7 eligible expenses paid or incurred by the taxpayer in connection with the elimination of any business unit of the taxpayer 7or of any member of any expanded affiliated group in which the taxpayer is also a member7 located outside the ,united ,states1 and 7,b7 eligible expenses paid or incurred by the taxpayer in connection with the establishment of any business unit of the taxpayer 7or of any member of any expanded affiliated group in which the taxpayer is also a member7 located within the ,united ,states1 if such establishment constitutes the relocation of the business unit so eliminated4 ,for purposes of the preceding sentence1 a relocation shall not be treated as failing to occur merely because such elimination occurs in a different taxable year than such establishment4 7#b7 ,eligible expenses ,the term eligible expenses means-- 7,a7 any amount for which a deduction is allowed to the taxpayer under section #afb1 and 7,b7 permit and license fees1 lease brokerage fees1 equipment installation costs1 and1 to the extent provided by the ,secretary1 other similar expenses4 ,such term does not include any compensation which is paid or incurred in connection with severance from employment and1 to the extent provided by the ,secretary1 any similar amount4 7#c7 ,business unit ,the term business unit means-- 7,a7 any trade or business1 and 7,b7 any line of business1 or functional unit1 which is part of any trade or business4 7#d7 ,expanded affiliated group ,the term expanded affiliated group means an affiliated group as defined in section #aejd7;a71 determined without regard to section #aejd7;b77#c7 and by substituting more than #ej percent for at least #hj percent each place it appears in section #aejd7;a74 ,a partnership or any other entity 7other than a corporation7 shall be treated as a member of an expanded affiliated group if such entity is controlled 7within the meaning of section #ied7;d77#c77 by members of such group 7including any entity treated as a member of such group by reason of this paragraph74 7#e7 ,expenses must be pursuant to insourcing plan ,amounts shall be taken into account under paragraph 7#a7 only to the extent that such amounts are paid or incurred pursuant to a written plan to carry out the relocation described in paragraph 7#a74 7#f7 ,operating expenses not taken into account ,any amount paid or incurred in connection with the on-going operation of a business unit shall not be treated as an amount paid or incurred in connection with the establishment or elimination of such business unit4 7c7 ,increased domestic employment requirement ,no credit shall be allowed under this section unless the number of full-time equivalent employees of the taxpayer for the taxable year for which the credit is claimed exceeds the number of full-time equivalent employees of the taxpayer for the last taxable year ending before the first taxable year in which such eligible insourcing expenses were paid or incurred4 ,for purposes of this subsection1 full-time equivalent employees has the meaning given such term under section #de,r7d7 7and the applicable rules of section #de,r7e774 ,all employers treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad shall be treated as a single employer for purposes of this subsection4 7d7 ,credit allowed upon completion of insourcing plan 7#a7 ,in general ,except as provided in paragraph 7#b71 eligible insourcing expenses shall be taken into account under subsection 7a7 in the taxable year during which the plan described in subsection 7b77#e7 has been completed and all eligible insourcing expenses pursuant to such plan have been paid or incurred4 7#b7 ,election to apply employment test and claim credit in first full taxable year after completion of plan ,if the taxpayer elects the application of this paragraph1 eligible insourcing expenses shall be taken into account under subsection 7a7 in the first taxable year after the taxable year described in paragraph 7#a74 7e7 ,possessions treated as part of the ,united ,states ,for purposes of this section1 the term ,united ,states shall be treated as including each possession of the ,united ,states 7including the ,commonwealth of ,puerto ,rico and the ,commonwealth of the ,northern ,mariana ,islands74 7f7 ,regulations ,the ,secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section4 4 7b7 ,credit ,to be part of general business credit ,subsection 7b7 of section #ch of such ,code is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cg7 the insourcing expenses credit determined under section #de,s7a74 4 7c7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de,s4 ,credit for insourcing expenses4 4 7d7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this ,act4 7e7 ,application to ,united ,states possessions 7#a7 ,payments to possessions 7,a7 ,mirror code possessions ,the ,secretary of the ,treasury shall make periodic payments to each possession of the ,united ,states with a mirror code tax system in an amount equal to the loss to that possession by reason of section #de,s of the ,internal ,revenue ,code of #aihf4 ,such amount shall be determined by the ,secretary of the ,treasury based on information provided by the government of the respective possession4 7,b7 ,other possessions ,the ,secretary of the ,treasury shall make annual payments to each possession of the ,united ,states which does not have a mirror code tax system in an amount estimated by the ,secretary of the ,treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of section #de,s of such ,code if a mirror code tax system had been in effect in such possession4 ,the preceding sentence shall not apply with respect to any possession of the ,united ,states unless such possession has a plan1 which has been approved by the ,secretary of the ,treasury1 under which such possession will promptly distribute such payment to the residents of such possession4 7#b7 ,coordination with credit allowed against united states income taxes ,no credit shall be allowed against ,united ,states income taxes under section #de,s of such ,code to any person-- 7,a7 to whom a credit is allowed against taxes imposed by the possession by reason of such section1 or 7,b7 who is eligible for a payment under a plan described in paragraph 7#a77;,b74 7#c7 ,definitions and special rules 7,a7 ,possessions of the ,united ,states ,for purposes of this section1 the term possession of the ,united ,states includes the ,commonwealth of ,puerto ,rico and the ,commonwealth of the ,northern ,mariana ,islands4 7,b7 ,mirror code tax system ,for purposes of this section1 the term mirror code tax system means1 with respect to any possession of the ,united ,states1 the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the ,united ,states as if such possession were the ,united ,states4 7,c7 ,treatment of payments ,for purposes of section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 the payments under this section shall be treated in the same manner as a refund due from sections referred to in such section #acbd7;b77#b74 #c4 ,denial of deduction for outsourcing expenses 7a7 ,in general ,part ,,ix of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #bhj;,i4 ,outsourcing expenses 7a7 ,in general ,no deduction otherwise allowable under this chapter shall be allowed for any specified outsourcing expense4 7b7 ,specified outsourcing expense ,for purposes of this section-- 7#a7 ,in general ,the term specified outsourcing expense means-- 7,a7 any eligible expense paid or incurred by the taxpayer in connection with the elimination of any business unit of the taxpayer 7or of any member of any expanded affiliated group in which the taxpayer is also a member7 located within the ,united ,states1 and 7,b7 any eligible expense paid or incurred by the taxpayer in connection with the establishment of any business unit of the taxpayer 7or of any member of any expanded affiliated group in which the taxpayer is also a member7 located outside the ,united ,states1 if such establishment constitutes the relocation of the business unit so eliminated4 ,for purposes of the preceding sentence1 a relocation shall not be treated as failing to occur merely because such elimination occurs in a different taxable year than such establishment4 7#b7 ,application of certain definitions and rules 7,a7 ,definitions ,for purposes of this section1 the terms eligible expenses1 business unit1 and expanded affiliated group shall have the respective meanings given such terms by section #de,s7b74 7,b7 ,operating expenses not taken into account ,a rule similar to the rule of section #de,s7b77#f7 shall apply for purposes of this section4 7c7 ,special rules 7#a7 ,application to deductions for depreciation and amortization ,in the case of any portion of a specified outsourcing expense which is not deductible in the taxable year in which paid or incurred1 such portion shall neither be chargeable to capital account nor amortizable4 7#b7 ,possessions treated as part of the ,united ,states ,for purposes of this section1 the term ,united ,states shall be treated as including each possession of the ,united ,states 7including the ,commonwealth of ,puerto ,rico and the ,commonwealth of the ,northern ,mariana ,islands74 7d7 ,regulations ,the ,secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section1 including regulations which provide 7or create a rebuttable presumption7 that certain establishments of business units outside the ,united ,states will be treated as relocations 7based on timing or such other factors as the ,secretary may provide7 of business units eliminated within the ,united ,states4 4 7b7 ,limitation on subpart ,f income of controlled foreign corporations determined without regard to specified outsourcing expenses ,subsection 7c7 of section #ieb of such ,code is amended by adding at the end the following new paragraph3 7#d7 ,earnings and profits determined without regard to specified outsourcing expenses ,for purposes of this subsection1 earnings and profits of any controlled foreign corporation shall be determined without regard to any specified outsourcing expense 7as defined in section #bhj;,i7b774 4 7c7 ,clerical amendment ,the table of sections for part ,,ix of subchapter ,b of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #bhj;,i4 ,outsourcing expenses4 4 7d7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this ,act4