,i  #aad? ,,congress  #b;d ,session  ,h4
 ,r4 #eaeh  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,april #bi1 #bjaf ,mr4
 ,mc,kinley introduc$ ! foll[+ bill2 :i*
 0 ref]r$ to ! ,committee on ,ways &    
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to provide a      
conditional #aj p]c5t rate ( tax = c]ta9
 bus9esses4  #a4 ,%ort title ,?is ,act  
may be cit$ z ! ,make ,am]ica           
,competitive ,act ( #bjaf4  #b4 ,elect$ 
#aj-p]c5t rate  7a7 ,9 g5]al  7#a7      
,corporate rate ,section #aa7;b7 ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#c7 ,mak+ ,am]ica competitive aga9 rate
 ,not)/&+ p>agraphs 7#a7 & 7#b71 ! am\nt
 ( ! tax impos$ by subsection 7a7 on !  
taxable income ( a corporation :i* has 9
 effect = ! taxable ye> an election "u  
section #e ( ! ,make ,am]ica            
,competitive ,aga9 ,act %all be det]m9$ 
at a rate ( #aj p]c5t4  4  7#b7         
,individual rate ,section #a ( su* ,code
 is am5d$ by add+ at ! end ! foll[+ new 

subsection3  7j7 ,mak+ ,am]ica          
competitive aga9 rate  7#a7 ,9 g5]al ,if
 a taxpay] has qualifi$ bus9ess income =
 any taxable ye>1 ! tax impos$ by ?is   
section = su* taxable ye> %all n exce$ !
 sum (--  7,a7 a tax comput$ at ! rates 
& 9 ! same mann] z if ?is subsection _h 
n be5 enact$ on taxable income r$uc$ by 
! portion ( su* taxable income t is     
attributable to qualifi$ bus9ess income1
 plus  7,b7 #aj p]c5t ( ! portion (     
taxable income t is attributable        
qualifi$ bus9ess income4  7#b7 ,qualifi$
 bus9ess income ,= purposes ( ?is       
section1 ! t]m qualifi$ bus9ess income  
means income ( ! individual t is d]iv$ f
 a p>tn]%ip1 ,s corporation1 or sole    
proprietor%ip :i* has 9 effect = !      
taxable ye> an election "u section #e ( 
! ,make ,am]ica ,competitive ,aga9 ,act4
  7#c7 ,portion ( taxable income        
attributable ,= purposes ( ?is          
subsection1 ! portion ( taxable income t
 is attributable to qualifi$ bus9ess    
income %all be an am\nt t be>s ! same   

ratio to taxable income z--  7,a7       
qualifi$ bus9ess income 7r$uc$ by any   
d$uctions prop]ly allocable !reto71 be>s
 to  7,b7 gross income 7r$uc$ by        
d$uctions prop]ly allocable !reto74  ,= 
purposes ( ! prec$+ s5t5ce1 ! ,secret>y 
%all by regulation prescribe me?ods = ! 
prop] allocation ( d$uctions4  4  7b7   
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjae4  #c4   
,elect$ repatriation ( =eign e>n+s 9    
,unit$ ,/ates  7a7 ,9 g5]al ,section    
#ife7;a77#a7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by ins]t+ 1 :i* has 9  
effect = ! taxable ye> an election "u   
section #e ( ! ,make ,am]ica            
,competitive ,aga9 ,act1 aft] :i* is a  
,unit$ ,/ates %>ehold]4  7b7            
,repatriation subject to #e-,p]c5t tax  
rate ,section #ife7;a77#a7 ( su* ,code  
is am5d$ by /rik+ #he p]c5t & ins]t+    
#he4g p]c5t4  7c7 ,p]man5t ext5sion ,to 
elect repatriation ,section #ife7;f7 (  
su* ,code is am5d$ to read z foll[s3    

7f7 ,election ,! taxpay] may elect to   
apply ?is section to any taxable ye>    
only if made on or be=e ! due date      
7includ+ ext5sions7 = fil+ ! return (   
tax = su* taxable ye>4  4  7d7          
,repatriation includes curr5t &         
accumulat$ =eign e>n+s ,section         
#ife7;b77#a7 ( su* ,code is am5d$ to    
read z foll[s3  7#a7 ,9 g5]al ,! am\nt (
 divid5ds tak5 into acc\nt "u subsection
 7a7 %all n exce$ ! sum ( ! curr5t &    
accumulat$ e>n+s & pr(its describ$ 9    
section #iei7;c77#c7 = ! ye> a d$uction 
is claim$ "u subsection 7a71 )\t        
dim9ution by reason ( any di/ributions  
made dur+ ! election ye>1 = all         
controll$ =eign corporations ( ! ,unit$ 
,/ates %>ehold]4  4  7e7 ,con=m+        
am5dm5ts  7#a7 ,section #ife7;b7 ( su*  
,code is am5d$ by /rik+ p>agraphs 7#b7 &
 7#d7 & by r$esignat+ p>agraph 7#c7 z   
p>agraph 7#b74  7#b7 ,section #ife7;c7 (
 su* ,code is am5d$ by /rik+ p>agraphs  
7#a7 & 7#b7 & by r$esignat+ p>agraphs   
7#c71 7#d71 & 7#e7 z p>agraphs 7#a71    

7#b71 & 7#c71 respectively4  7#c7       
,section #ife7;c77#c7 ( su* ,code1 z    
r$esignat$ by subp>agraph 7,b71 is am5d$
 to read z foll[s3  7#c7 ,controll$     
gr\ps ,all ,unit$ ,/ates %>ehold]s :i*  
are memb]s ( an affiliat$ gr\p fil+ a   
consolidat$ return "u section #aeja %all
 be treat$ z "o ,unit$ ,/ates %>ehold]4 
4  7#d7 ,! head+ = section #ife ( su*   
,code is am5d$ by /rik+ ,tempor>y4  7#e7
 ,! table ( sections = subp>t ,f ( "p   
,,iii ( sub*apt] ,n ( *apt] #a ( su*    
,code is am5d$ by /rik+ ,tempor>y       
divid5ds & ins]t+ ,divid5ds4  7f7       
,transf]s to highway tru/ fund ,section 
#iejc7;f7 ( su* ,code is am5d$ by       
r$esignat+ p>agraph 7#aj7 z p>agraph    
7#aa7 & by ins]t+ aft] p>agraph 7#i7 !  
foll[+ new p>agraph3  7#aj7 ,transf] (  
rev5ues f repatriation holiday ,!re is  
h]eby appropriat$ to ! ,highway ,acc\nt 
7z def9$ 9 subsection 7e77#e77;,b77 9 ! 
,highway ,tru/ ,fund su* am\nts z !     
,secret>y f "t to "t e/imates are equal 
to ! am\nt ( rev5ue receiv$ 9 !         

,treasury aft] ! date ( ! enactm5t ( ?is
 p>agraph f income taxes impos$ on      
divid5ds :i* are tak5 into acc\nt "u    
section #ife4  4  7g7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to taxable ye>s beg9n+ aft] ,decemb]   
#ca1 #bjae4  #d4 ,elect$ waiv] ( c]ta9  
tax exp5ditures  7a7 ,dome/ic           
productions activities d$uction  7#a7 ,9
 g5]al ,section #aii ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subsection3  7e7  
,waiv] 9 case ( ,make ,am]ica           
,competitive ,aga9 election ,subsection 
7a7 %all n apply to a taxpay] = any     
taxable ye> = :i* su* taxpay] has 9     
effect an election "u section #e ( !    
,make ,am]ica ,competitive ,aga9 ,act4  
4  7#b7 ,effective date ,! am5dm5t made 
by ?is subsection %all apply to taxable 
ye>s beg9n+ aft] ,decemb] #ca1 #bjae4   
7b7 ,l-,k9d ex*anges  7#a7 ,9 g5]al     
,section #ajca ( su* ,code is am5d$ by  
add+ at ! end ! foll[+ new subsection3  
7j7 ,waiv] 9 case ( ,make ,am]ica       

,competitive ,aga9 election ,subsection 
7a7 %all n apply to any ex*ange dur+ any
 taxable ye> = :i* ! taxpay] has 9      
effect an election "u section #e ( !    
,make ,am]ica ,competitive ,aga9 ,act4  
4  7#b7 ,effective date ,! am5dm5t made 
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjae4   
7c7 ,in/allm5t sales  7#a7 ,9 g5]al     
,section #dec ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new subsection3  7m7 ,waiv] 9    
case ( ,make ,am]ica ,competitive ,aga9 
election  7#a7 ,9 g5]al ,subsection 7a7 
%all n apply ) respect to any taxable   
ye> = :i* ! taxpay] has 9 effect an     
election "u section #e ( ! ,make ,am]ica
 ,competitive ,aga9 ,act4  7#b7 ,prior  
dispositions ,if ! taxpay] makes an     
election "u su* section #e = a taxable  
ye> = :i* income f a disposition (      
prop]ty 9 a prior taxable ye> w\ld 7b = 
?is subsection7 be tak5 into acc\nt "u !
 in/allm5t me?od1 ! rema9+ unrecogniz$  
income f su* disposition %all be        

recogniz$ by ! taxpay] 9 ! ye> ( su*    
election4  4  7#b7 ,effective date ,!   
am5dm5t made by ?is section %all apply  
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjae4  #e4 ,make ,am]ica          
,competitive ,aga9 election  7a7 ,9     
g5]al ,an eligible employ] %all be      
treat$ z hav+ 9 effect an election "u   
?is section = a taxable ye> if su*      
employ] elects ! application ( ?is      
section 7at su* "t & 9 su* =m & mann] z 
! ,secret>y ( ! ,treasury %all by       
regulation prescribe7 & meets !         
requirem5ts ( p>agraphs 7#a7 ?r\gh 7#d7 
( subsection 7b74  7b7 ,requirem5ts =   
election  7#a7 ,heal? insurance  7,a7 ,9
 g5]al ,! requirem5ts ( ?is p>agraph    
%all be treat$ z met = a taxable ye> if 
! employ] (f]s to ea* full-"t employee  
7& any dep5d5ts7 ! opportunity to enroll
 9 a gr\p heal? plan or gr\p heal?      
insurance cov]age = all mon?s end+ dur+ 
! taxable ye>1 unless ! requir$         
contribution 7z def9$ 9 section         
#ejjj;,a7e77#a77;,b7 ( ! ,int]nal       

,rev5ue ,code ( #aihf7 ( any su*        
employee ) respect to su* plan exce$s   
#i4e p]c5t ( ! taxpay]'s modifi$ adju/$ 
gross income4  7,b7 ,modifi$ adju/$     
gross income ,! t]m modifi$ adju/$ gross
 income means adju/$ gross income       
increas$ by-- 7i7 any am\nt exclud$ f   
gross income "u section #iaa1  7ii7 any 
am\nt ( int]e/ receiv$ or accru$ by !   
taxpay] dur+ ! taxable ye> :i* is exempt
 f tax1 &  7iii7 an am\nt equal to !    
portion ( ! taxpay]'s social security   
b5efits 7z def9$ 9 section #hf7;d7 ( su*
 ,code7 :i* is n includ$ 9 gross income 
"u section #hf = ! taxable ye>4  7#b7   
,def9$ contribution plan  7,a7 ,9 g5]al 
,! requirem5ts ( ?is p>agraph %all be   
treat$ z met = a taxable ye> if !       
employ] (f]s to all its full-"t         
employees a def9$ contribution plan 7)9 
! mean+ ( section #dad7;i7 ( ! ,int]nal 
,rev5ue ,code ( #aihf7 "u :i* ! employ] 
makes mat*+ contributions on behalf (   
ea* employee 9 an am\nt n less t #ej    
p]c5t ( s mu* ( elective contributions (

 ! employee z d n exce$ #f p]c5t (      
comp5sation4  7,b7 ,age & s]vice        
exception ,9 ! case ( an employ] t      
ma9ta9s a qualifi$ plan or arrangem5t   
:i* excludes employees :o h n satisfi$ !
 m9imum age & s]vice requirem5ts =      
p>ticipation 9 ! plan1 su* employee :o  
has n satisfi$ su* requirem5ts4  7#c7   
,pay increases  7,a7 ,9 g5]al ,!        
requirem5ts ( ?is p>agraph %all be      
treat$ z met if ! av]age increase 9     
wages paid by ! employ] to ea*          
applicable employee = ! cal5d> ye> end+ 
) or )9 ! taxable ye>1 comp>$ ) wages   
paid by ! employ] to ea* su* applicable 
employee = ! prec$+ cal5d> ye>1 is at   
lea/ #c p]c5t4  7,b7 ,applicable        
employee ,= purposes ( ?is p>agraph1 !  
t]m applicable employee means1 ) respect
 to any employ]1 a full-"t employee :o  
is n 9 ! gr\p consi/+ ( ! top #aj p]c5t 
( employees :5 rank$ on ! basis (       
comp5sation paid dur+ su* ye>4  7,c7    
,wages ,= purposes ( ?is p>agraph1 ! t]m
 wages %all h ! mean+ giv5 su* t]m by   

section #caba ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7det]m9$ )\t reg>d to any doll>
 limitation conta9$ 9 su* section74     
7,d7 ,special rules  7i7 ,commission$   
employees ,9 ! case ( any employee :o is
 paid solely on a commission basis1 !   
employ] %all be treat$ z meet+ !        
requirem5ts ( subp>agraph 7,a7 only if !
 employ] pays ! employee 7on a          
noncommission basis7 an am\nt equal to  
#c p]c5t ( su* employees wages = !      
prec$+ cal5d> ye>4  7ii7 ,new employees 
,an employ] %all n be treat$ z meet+ !  
requirem5ts ( subp>agraph 7,a7 ) respect
 to any employee :o 0 n employ$ by !    
employ] dur+ ! prec$+ cal5d> ye> unless 
! employee's increase 9 wages paid by ! 
employ] = ! cal5d> ye> is at lea/       
#b1ejj4  7iii7 ,co/-(-liv+ adju/m5t ,9 !
 case ( cal5d> ye>s beg9n+ aft] ,decemb]
 #ca1 #bjag1 ! #b1ejj am\nt "u clause   
7ii7 %all be increas$ by an am\nt equal 
to--  7,i7 su* doll> am\nt1 multipli$ by
  7,,ii7 ! co/-(-liv+ adju/m5t det]m9$  
"u section #a7;f77#c7 = ! cal5d> ye>1   

det]m9$ by sub/itut+ cal5d> ye> #bjaf = 
cal5d> ye> #aiib 9 subp>agraph 7,b7     
!re(4  7#d7 ,def9$ b5efit plan2         
additional ,social ,security            
contributions  7,a7 ,9 g5]al ,!         
requirem5ts ( ?is p>agraph %all be      
treat$ z met = a taxable ye> if1 on     
behalf ( ea* full-"t employee to :om !  
employ] does n (f] a def9$ b5efit plan  
7)9 ! mean+ ( section #dad7;j7 ( !      
,int]nal ,rev5ue ,code ( #aihf71 !      
employ] makes contributions to !        
,secret>y ( ! ,treasury 9 an am\nt equal
 to #d4e p]c5t ( ! wages 7z def9$ 9     
section #caba7;a7 ( su* ,code7 paid by !
 employ] ) respect to employm5t 7z def9$
 9 section #caba7;b7 ( su* ,code7 dur+ !
 cal5d> ye>4 ,su* contributions %all be 
made at ! same "t & 9 ! same mann] z !  
tax impos$ on ! employ] "u section #caaa
 ( su* ,code4  7,b7 ,special rule =     
highly comp5sat$ employees ,9 ! case (  
an employee ^: wages 7z def9$ 9 section 
#caba7;a7 ( su* ,code1 det]m9$ )\t reg>d
 to any doll> limitation conta9$ 9 su*  

section7 paid by ! employ] ) respect to 
employm5t 7z def9$ 9 section #caba7;b7 (
 su* ,code7 exce$ #ejj1jjj = ! cal5d>   
ye>1 ! employ] %all make contributions  
to ! ,secret>y ( ! ,treasury 9 an am\nt 
equal to #d4e p]c5t ( su* excess1 (     
:i*--  7i7 #b4e p]c5t ( su* excess %all 
be treat$ = purposes ( section #f ( ?is 
,act z a contribution made "u           
subp>agraph 7,a71 &  7ii7 #b4j p]c5t (  
su* excess %all be transf]r$ to ! ,f$]al
 ,old-,age & ,survivors ,insurance ,tru/
 ,fund )\t any correspond+ increase 9 ! 
prim>y insurance am\nt ( su* individual4
  7,c7 ,indep5d5t contractors ,9 ! case 
( an individual :o receives remun]ation 
f ano!r p]son = s]vices provid$1 o!r ?an
 z an employee1 on m ?an #acj days dur+ 
! cal5d> ye>1 = purposes ( subp>agraph  
7,a71 = su* cal5d> ye> su* o!r p]son    
%all treat su* individual z an employee 
& su* remun]ation %all be treat$ z wages
 paid ) respect to employm5t4  7c7      
,def9itions & special rule ,= purposes (
 ?is section-- 7#a7 ,eligible employ] ,!

 t]m eligible employ] means1 ) respect  
to any taxable ye>1 an employ] :i* has  
at lea/ #e full-"t employees = ! taxable
 ye>4  7#b7 ,full-"t employee ,! t]m    
full-"t employee means1 ) respect to any
 mon?1 an employee :o is employ$ on     
av]age at lea/ #cj h\rs ( s]vice p]     
week4  7#c7 ,unit$ ,/ates employees only
 ,subsection 7b7 %all be appli$ )\t     
reg>d to any employees ^: ess5tial job  
function is outside ! ,unit$ ,/ates4    
7#d7 ,controll$ gr\ps ,all employees :o 
are treat$ z employ$ by a s+le employ]  
"u subsection 7b71 7c71 7m71 or 7o7 (   
section #dad %all be treat$ z employ$ by
 a s+le employ]4  7#e7 ,collective      
b>ga9+ employees exclud$ ,! employ] may 
exclude f ! requirem5ts & det]m9ations  
made "u ?is section employees subject to
 a collective b>ga9+ agreem5t4  #f4     
,additional ,social ,security ,acc\nt   
,fund  7a7 ,9 g5]al ,!re is e/abli%$ 9 !
 ,treasury ( ! ,unit$ ,/ates a fund to  
be kn[n z ! ,additional ,social         
,security ,acc\nt ,fund4  7b7 ,am\nts   

held by fund ,su* ,fund %all consi/ (   
am\nts equival5t to ! sum ( all am\nts  
paid "u section #e7;b77#d77;,a7 ( !     
,make ,am]ica ,competitive ,aga9 ,act 7&
 any net inve/m5t e>n+s attributable    
!reto71 less any transf] "u subsection  
7c7 or any di/ribution p]mitt$ "u ?is   
section4  7c7 ,transf] ( elect$ am\nts  
to ,tru/ ,fund ,! ,secret>y ( !         
,treasury %all transf] f su* ,fund to ! 
,f$]al ,old-,age & ,survivors ,insurance
 ,tru/ ,fund any am\nts paid "u section 
#e7;b77#d77;,a7 ) respect to :i* !      
individual on ^: behalf su* am\nt 7 paid
 has elect$ to be s transf]r$ & treat$  
"u section #bae7;j7 ( ! ,social         
,security ,act 7#db ,u4,s4,c4 #dae7;j771
 z add$ by ?is ,act4 ,any su* election  
%all be made at su* "t & 9 su* =m &     
mann] z ! ,secret>y %all prescribe &    
%all be irrevocable4  7d7 ,managem5t (  
,fund & acc\nts  7#a7 ,9 g5]al ,!       
,secret>y %all e/abli% an ,additional   
,social ,security ,acc\nt program1 "u   
:i*-- 7,a7 am\nts 9 ! ,fund 7& e>n+s    

attributable !reto7 %all be sep>ately   
acc\nt$ = & held = ! exclusive b5efit ( 
ea* individual on ^: behalf su* am\nts 7
 contribut$1 &  7,b7 di/ributions may be
 made by su* individuals "u rules       
prescrib$ by ! ,secret>y simil> to !    
rules applicable to a qualifi$ ca% or   
def]r$ arrangem5ts 7)9 ! mean+ ( section
 #dja7k7 ( ! ,int]nal ,rev5ue ,code (   
#aihf74  7e7 ,tax treatm5t ( ,fund  7#a7
 ,9 g5]al ,= purposes ( ! ,int]nal      
,rev5ue ,code ( #aihf1 ! ,additional    
,social ,security ,acc\nt ,fund %all be 
treat$ z a tru/ describ$ 9 section      
#dja7;a7 ( su* ,code :i* is exempt f    
taxation "u section #eja7;a7 ( su*      
,code1 & any di/ribution f ! ,fund "u ! 
,additional ,social ,security ,acc\nt   
program %all be treat$ 9 ! same mann] z 
a di/ribution f su* a tru/4  7#b7 ,no   
di/ributions dur+ fir/ #aj ye>s ( ,fund 
,no di/ributions may be made f ! ,fund  
e>li] ?an #aj ye>s aft] ! date ( !      
enactm5t ( ?is ,act4  7#c7 ,rollov]s    
prohibit$ ,an eligible rollov]          

di/ribution 7z def9$ 9 section          
#djb7;c77#d7 ( su* ,code7 %all n include
 any am\nt di/ribut$ f ! ,additional    
,social ,security ,acc\nt4  7f7         
,inve/m5t ( ,fund ,! ,secret>y %all     
appo9t a ,bo>d1 :i* %all provide = !    
inve/m5t ( am\nts :i* are held on behalf
 ( individuals 9 ! ,additional ,social  
,security ,acc\nt ,fund4 ,! ,bo>d %all  
provide by regulation = ! prud5t        
direction ( inve/m5ts ( su* am\nts by   
su* individuals 9 cons]vative & age     
appropriate options4  7g7 ,transf] at   
dea? ,individuals may designate "o or m 
b5efici>ies 7"u su* rules z ! ,secret>y 
%all prescribe7 to provide = disposition
 at dea? ( any rema9+ am\nts 9 ! ,fund  
held on su* individual's behalf4  #g4   
,increase ( prim>y insurance am\nt z a  
result ( c]ta9 employ] contributions    
,section #bae ( ! ,social ,security ,act
 7#db ,u4,s4,c4 #dae7 is am5d$ by add+  
at ! end ! foll[+3  7j7  7#a7 ,9 ! case 
( an individual on ^: behalf (          
contributions h be5 made "u section     

#e7;b77#d77;,a7 ( ! ,make ,am]ica       
,competitive ,act ( #bjaf1 & :o has made
 an election "u section #f7;c7 ( su*    
,act ) respect to su* contributions1 !  
prim>y insurance am\nt ( su* individual 
o!rwise det]m9$ "u ?is section 7)\t     
reg>d to ?is subsection7 %all be comput$
 or recomput$1 = mon?s beg9n+ aft] ea*  
su* contribution1 by increas+ su* prim>y
 insurance am\nt z specifi$ "u p>agraph 
7#b74  7#b7 ,! increase specifi$ "u ?is 
p>agraph %all be det]m9$ "u regulations 
issu$ by ! ,commission] ( ,social       
,security4  4