,,ii #aad? ,,congress #a/ ,session ,s4 #cig ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,febru>y #e1 #bjae,mr4 ,mc,cain introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to all[ a tempor>y divid5ds receiv$ d$uction = divid5ds receiv$ f a controll$ =eign corporation4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,=eign ,e>n+s ,re9ve/m5t ,act4 #b4 ,all[ance ( tempor>y divid5ds receiv$ d$uction = divid5ds receiv$ f a controll$ =eign corporation 7a7 ,applicability ( provision 7#a7 ,9 g5]al ,subsection 7f7 ( section #ife ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7f7 ,election2 election ye> 7#a7 ,9 g5]al ,! taxpay] may elect to apply ?is section to-- 7,a7 ! taxpay]'s la/ taxable ye> :i* beg9s be=e ! date ( ! enactm5t ( ! ,=eign ,e>n+s ,re9ve/m5t ,act1 or 7,b7 ! taxpay]'s fir/ taxable ye> :i* beg9s dur+ ! #a-ye> p]iod beg9n+ on su* date4 ,su* election may be made = a taxable ye> only if made on or be=e ! due date 7includ+ ext5sions7 = fil+ ! return ( tax = su* taxable ye>4 7,c7 ,election ye> ,= purposes ( ?is section1 ! t]m election ye> means ! taxable ye>-- 7i7 :i* beg9s aft] ! date t is "o ye> be=e ! date ( ! enactm5t ( ! ,=eign ,e>n+s ,re9ve/m5t ,act1 & 7ii7 to :i* ! taxpay] elects "u p>agraph 7#a7 to apply ?is section4 4 7#b7 ,con=m+ am5dm5ts 7,a7 ,extraord9>y divid5ds ,section #ife7;b77#b7 ( su* ,code is am5d$-- 7i7 by /rik+ ,june #cj1 #bjjc & ins]t+ ,decemb] #ca1 #bjad1 & 7ii7 by add+ at ! end ! foll[+ new s5t5ce3 ,! am\nts describ$ 9 clauses 7i71 7ii71 & 7iii7 %all n include any am\nts :i* 7 tak5 into acc\nt 9 det]m9+ ! d$uction "u subsection 7a7 = any prior taxable ye>44 7,b7 ,det]m9ations relat+ to relat$ p>ty indebt$ness ,section #ife7;b77#c77;,b7 ( su* ,code is am5d$ by /rik+ ,octob] #c1 #bjjd & ins]t+ ,decemb] #ca1 #bjad4 7,c7 ,det]m9ations relat+ to base p]iod ,section #ife7;c77#b7 ( su* ,code is am5d$ by /rik+ ,june #cj1 #bjjc & ins]t+ ,decemb] #ca1 #bjad4 7b7 ,d$uction includes curr5t & accumulat$ =eign e>n+s 7#a7 ,9 g5]al ,p>agraph 7#a7 ( section #ife7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf 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 7#b7 ,con=m+ am5dm5ts 7,a7 ,section #ife7;c7 ( su* ,code1 z am5d$ by subsection 7a71 is am5d$ by /rik+ p>agraph 7#a7 & by r$esignat+ p>agraphs 7#b71 7#c71 7#d71 & 7#e71 z p>agraphs 7#a71 7#b71 7#c71 & 7#d71 respectively4 7,b7 ,p>agraph 7#d7 ( section #ife7;c7 ( su* ,code1 z r$esignat$ by subp>agraph 7,a71 is am5d$ to read z foll[s3 7#d7 ,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 7c7 ,am\nt ( d$uction 7#a7 ,9 g5]al ,p>agraph 7#a7 ( section #ife7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #he p]c5t & ins]t+ #ge p]c5t4 7#b7 ,bonus d$uction 9 subsequ5t taxable ye> = increas+ jobs ,section #ife ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7g7 ,bonus d$uction 7#a7 ,9 g5]al ,9 ! case ( any taxpay] :o makes an election to apply ?is section1 !re %all be all[$ z a d$uction = ! fir/ taxable ye> foll[+ ! election ye> an am\nt equal to ! applicable p]c5tage ( ! ca% divid5ds :i* are tak5 into acc\nt "u subsection 7a7 ) respect to su* taxpay] = ! election ye>4 7#b7 ,applicable p]c5tage ,= purposes ( p>agraph 7#a71 ! applicable p]c5tage is ! am\nt :i* be>s ! same ratio 7n great] ?an #a7 to #aj p]c5t z-- 7,a7 ! excess 7if any7 (-- 7i7 ! qualifi$ payroll ( ! taxpay] = ! cal5d> ye> :i* beg9s ) or )9 ! fir/ taxable ye> foll[+ ! election ye>1 ov] 7ii7 ! qualifi$ payroll ( ! taxpay] = cal5d> ye> #bjad1 be>s to 7,b7 #aj p]c5t ( ! qualifi$ payroll ( ! taxpay] = cal5d> ye> #bjad4 7#c7 ,qualifi$ payroll ,= purposes ( ?is p>agraph3 7,a7 ,9 g5]al ,! t]m qualifi$ payroll means1 ) respect to a taxpay] = any cal5d> ye>1 ! aggregate wages 7z def9$ 9 section #caba7;a77 paid by ! corporation dur+ su* cal5d> ye>4 7,b7 ,exception = *anges 9 own]%ip ( trades or bus9esses 7i7 ,acquisitions ,if1 aft] ,decemb] #ca1 #bjac1 & be=e ! close ( ! fir/ taxable ye> foll[+ ! election ye>1 a taxpay] acquires ! trade or bus9ess ( a pr$ecessor1 !n ! qualifi$ payroll ( su* taxpay] = any cal5d> ye> %all be increas$ by s mu* ( ! qualifi$ payroll ( ! pr$ecessor = su* cal5d> ye> z 0 attributable to ! trade or bus9ess acquir$ by ! taxpay]4 7ii7 ,dispositions ,if1 aft] ,decemb] #ca1 #bjac1 & be=e ! close ( ! fir/ taxable ye> foll[+ ! election ye>1 a taxpay] disposes ( a trade or bus9ess1 !n-- 7,i7 ! qualifi$ payroll ( su* taxpay] = cal5d> ye> #bjad %all be decreas$ by ! am\nt ( wages = su* cal5d> ye> z 7 attributable to ! trade or bus9ess :i* 0 dispos$ ( by ! taxpay]1 & 7,,ii7 if ! disposition occurs aft] ! beg9n+ ( ! fir/ taxable ye> foll[+ ! election ye>1 ! qualifi$ payroll ( su* taxpay] = ! cal5d> ye> :i* beg9s ) or )9 su* taxable ye> %all be decreas$ by ! am\nt ( wages = su* cal5d> ye> z 7 attributable to ! trade or bus9ess :i* 0 dispos$ ( by ! taxpay]4 7,c7 ,special rule ,= purposes ( det]m9+ qualifi$ payroll = any cal5d> ye> aft] cal5d> ye> #bjae1 su* t]m %all n include wages paid to any individual if su* individual receiv$ comp5sation f ! taxpay] = s]vices p]=m$-- 7i7 aft] ! date ( ! enactm5t ( ?is p>agraph1 & 7ii7 at a "t :5 su* individual 0 n an employee ( ! taxpay]4 4 7#c7 ,r$uction = failure to ma9ta9 employm5t levels ,p>agraph 7#d7 ( section #ife7;b7 ( su* ,code is am5d$ to read z foll[s3 7#d7 ,r$uction 9 b5efits = failure to ma9ta9 employm5t levels 7,a7 ,9 g5]al ,if1 dur+ ! p]iod consi/+ ( ! cal5d> mon? 9 :i* ! taxpay] fir/ receives a di/ribution describ$ 9 subsection 7a77#a7 & ! succe$+ #bc cal5d> mon?s1 ! taxpay] does n ma9ta9 an av]age employm5t level at lea/ equal to ! taxpay]'s prior av]age employm5t1 an additional am\nt equal to #ge1jjj multipli$ by ! numb] ( employees by :i* ! taxpay]'s av]age employm5t level dur+ su* p]iod falls bel[ ! prior av]age employm5t 7b n exce$+ ! aggregate am\nt all[$ z a d$uction pursuant to subsection 7a77#a77 %all be tak5 into income by ! taxpay] dur+ ! taxable ye> t includes ! f9al day ( su* p]iod4 7,b7 ,av]age employm5t level ,= purposes ( ?is p>agraph1 ! taxpay]'s av]age employm5t level = a p]iod %all be ! av]age numb] ( full-"t ,unit$ ,/ates employees ( ! taxpay]1 measur$ at ! end ( ea* mon? dur+ ! p]iod4 7,c7 ,prior av]age employm5t ,= purposes ( ?is p>agraph1 ! taxpay]'s prior av]age employm5t %all be ! av]age numb] ( full-"t ,unit$ ,/ates employees ( ! taxpay] dur+ ! p]iod consi/+ ( ! #bd cal5d> mon?s imm$iately prec$+ ! cal5d> mon? 9 :i* ! taxpay] fir/ receives a di/ribution describ$ 9 subsection 7a77#a74 7,d7 ,full-"t ,unit$ ,/ates employee ,= purposes ( ?is p>agraph-- 7i7 ,9 g5]al ,! t]m full-"t ,unit$ ,/ates employee means an individual :o provides s]vices 9 ! ,unit$ ,/ates z a full-"t employee1 bas$ on ! employ]'s /&>ds & practices2 except t reg>dless ( ! employ]'s classification ( ! employee1 an employee ^: normal s*$ule is #dj h\rs or m p] week is consid]$ a full-"t employee4 7ii7 ,exception = *anges 9 own]%ip ( trades or bus9esses ,su* t]m does n include-- 7,i7 any individual :o 0 an employee1 on ! date ( acquisition1 ( any trade or bus9ess acquir$ by ! taxpay] dur+ ! #bd-mon? p]iod ref]r$ to 9 subp>agraph 7,a71 & 7,,ii7 any individual :o 0 an employee ( any trade or bus9ess dispos$ ( by ! taxpay] dur+ ! #bd-mon? p]iod ref]r$ to 9 subp>agraph 7,a7 or ! #bd-mon? p]iod ref]r$ to 9 subp>agraph 7,c74 7,e7 ,aggregation rules ,9 det]m9+ ! taxpay]'s av]age employm5t level & prior av]age employm5t1 all dome/ic memb]s ( a controll$ gr\p %all be treat$ z a s+le taxpay]4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s end+ aft] ! date ( ! enactm5t ( ?is ,act4