,,ii #aacth ,,congress #ast ,session ,s4 #efa ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ad1 #bjac ,mr4 ,whitehouse 7for himself1 ,mr4 ,durbin1 ,mr4 ,leahy1 ,mr4 ,harkin1 ,mr4 ,levin1 and ,mrs4 ,boxer7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for the taxation of income of controlled foreign corporations attributable to imported property4 #a4 ,short title ,this ,act may be cited as the ,offshoring ,prevention ,act4 #b4 ,taxation of income of controlled foreign corporations attributable to imported property 7a7 ,general ,rule ,subsection 7a7 of section #ied of the ,internal ,revenue ,code of #aihf is amended by striking the period at the end of paragraph 7#e7 and inserting 1 and1 by redesignating paragraph 7#e7 as paragraph 7#d71 and by adding at the end the following new paragraph3 7#e7 imported property income for the taxable year 7determined under subsection 7j7 and reduced as provided in subsection 7b77#e774 4 7b7 ,definition of ,imported ,property ,income ,section #ied of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7j7 ,imported ,property ,income 7#a7 ,in general ,for purposes of subsection 7a77#e71 the term imported property income means income 7whether in the form of profits1 commissions1 fees1 or otherwise7 derived in connection with-- 7,a7 manufacturing1 producing1 growing1 or extracting imported property2 7,b7 the sale1 exchange1 or other disposition of imported property2 or 7,c7 the lease1 rental1 or licensing of imported property4 ,such term shall not include any foreign oil and gas extraction income 7within the meaning of section #ijg7;c77 or any foreign oil related income 7within the meaning of section #ijg7;c774 7#b7 ,imported property ,for purposes of this subsection-- 7,a7 ,in general ,except as otherwise provided in this paragraph1 the term imported property means property which is imported into the ,united ,states by the controlled foreign corporation or a related person4 7,b7 ,imported property includes certain property imported by unrelated persons ,the term imported property includes any property imported into the ,united ,states by an unrelated person if1 when such property was sold to the unrelated person by the controlled foreign corporation 7or a related person71 it was reasonable to expect that-- 7i7 such property would be imported into the ,united ,states2 or 7ii7 such property would be used as a component in other property which would be imported into the ,united ,states4 7,c7 ,exception for property subsequently exported ,the term imported property does not include any property which is imported into the ,united ,states and which-- 7i7 before substantial use in the ,united ,states1 is sold1 leased1 or rented by the controlled foreign corporation or a related person for direct use1 consumption1 or disposition outside the ,united ,states2 or 7ii7 is used by the controlled foreign corporation or a related person as a component in other property which is so sold1 leased1 or rented4 7,d7 ,exception for certain agricultural commodities ,the term imported property does not include any agricultural commodity which is not grown in the ,united ,states in commercially marketable quantities4 7#c7 ,definitions and special rules 7,a7 ,import ,for purposes of this subsection1 the term import means entering1 or withdrawal from warehouse1 for consumption or use4 ,such term includes any grant of the right to use intangible property 7as defined in section #icf7;h77#c77;,b77 in the ,united ,states4 7,b7 ,united states ,for purposes of this subsection1 the term ,united ,states includes the ,commonwealth of ,puerto ,rico1 the ,virgin ,islands of the ,united ,states1 ,guam1 ,american ,samoa1 and the ,commonwealth of the ,northern ,mariana ,islands4 7,c7 ,unrelated person ,for purposes of this subsection1 the term unrelated person means any person who is not a related person with respect to the controlled foreign corporation4 7,d7 ,coordination with foreign base company sales income ,for purposes of this section1 the term foreign base company sales income shall not include any imported property income4 4 7c7 ,separate ,application of ,limitations on ,foreign ,tax ,credit for ,imported ,property ,income 7#a7 ,in general ,paragraph 7#a7 of section #ijd7;d7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of subparagraph 7,a71 by redesignating subparagraph 7,b7 as subparagraph 7,c71 and by inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 imported property income1 and 4 7#b7 ,imported property income defined ,paragraph 7#b7 of section #ijd7;d7 of such ,code is amended by redesignating subparagraphs 7,i71 7,j71 and 7,k7 as subparagraphs 7,j71 7,k71 and 7,l71 respectively1 and by inserting after subparagraph 7,h7 the following new subparagraph3 7,i7 ,imported property income ,the term imported property income means any income received or accrued by any person which is of a kind which would be imported property income 7as defined in section #ied7;j774 4 7#c7 ,conforming amendment ,clause 7ii7 of section #ijd7;d77#b77;,a7 of such ,code is amended by inserting or imported property income after passive category income4 7d7 ,technical ,amendments 7#a7 ,clause 7iii7 of section #ieb7;c77#a77;,b7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by redesignating subclauses 7,,ii71 7,,iii71 7,,iv71 and 7,v7 as subclauses 7,,iii71 7,,iv71 7,v71 and 7,,vi71 and 7,b7 by inserting after subclause 7,i7 the following new subclause3 7,,ii7 imported property income1 4 7#b7 ,the last sentence of paragraph 7#d7 of section #ied7;b7 of such ,code is amended by striking subsection 7a77#e7 and inserting subsection 7a77#d74 7#c7 ,paragraph 7#e7 of section #ied7;b7 of such ,code is amended by striking and the foreign base company oil related income and inserting the foreign base company oil related income1 and the imported property income4 7e7 ,effective ,date ,the amendments made by this section shall apply to taxable years of foreign corporations beginning after the date of the enactment of this ,act1 and to taxable years of ,united ,states shareholders within which or with which such taxable years of such foreign corporations end4