,,ii #aadth ,,congress #ast ,session ,s4 #iha ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #af1 #bjae ,mr4 ,paul 7for himself 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 a repatriation holiday1 to increase funding to the ,highway ,trust ,fund1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,invest ,in ,transportation ,act4 #b4 ,incentives to reinvest foreign earnings in ,united ,states 7a7 ,applicability of temporary dividends received deduction 7#a7 ,in general ,subsection 7f7 of section #ife of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7f7 ,election 7#a7 ,in general ,the taxpayer may elect to apply this section to the #e-taxable-year period beginning with-- 7,a7 the taxpayer's last taxable year which begins before the date of the enactment of the ,invest ,in ,transportation ,act1 or 7,b7 the taxpayer's first taxable year which begins during the #a-year period beginning on such date of enactment4 7#b7 ,time for making election ,any election made under this section shall be made on or before the due date 7including extensions7 for filing the return of tax for the first taxable year in the #e-taxable-year period described in paragraph 7#a74 7#c7 ,declaration of amount repatriated ,an election under this section shall designate a limitation of the aggregate amount of dividends to be taken into account under subsection 7a7 during the #e-taxable-year period4 4 7#b7 ,conforming amendments 7,a7 ,determinations relating to base period for determining extraordinary dividends ,section #ife of such ,code is amended by striking ,june #cj1 #bjjc each place it appears in subsections 7b77#b7 and 7c77#b7 and inserting ,december #ca1 #bjad4 7,b7 ,determinations relating to related party indebtedness ,section #ife7;b77#c77;,b7 of such ,code is amended by striking ,october #c1 #bjjd and inserting ,december #ca1 #bjad4 7b7 ,deduction equivalent to #f4e-,percent rate of tax ,paragraph 7#a7 of section #ife7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking #he percent and inserting #ha4d percent4 7c7 ,limitations 7#a7 ,in general 7,a7 ,in general ,paragraph 7#a7 of section #ife7;b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,in general ,the amount of dividends taken into account under subsection 7a7 shall not exceed the ,united ,states shareholder's pro rata share of the accumulated earnings and profits described in section #iei7;c77#c7 as of the end of the last taxable year ending on or before ,december #ca1 #bjad1 for all controlled foreign corporations of the ,united ,states shareholder4 4 7,b7 ,conforming amendments 7i7 ,subsection 7c7 of section #ife of such ,code is amended by striking paragraph 7#a74 7ii7 ,paragraph 7#e7 of section #ife7;c7 of such ,code is amended to read as follows3 7#e7 ,controlled groups ,all ,united ,states shareholders which are members of an affiliated group filing a consolidated return under section #aeja shall be treated as one ,united ,states shareholder4 4 7#b7 ,additional limitation ,subsection 7b7 of section #ife of such ,code is amended by redesignating paragraph 7#d7 as paragraph 7#e7 and by inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,additional limitation 7,a7 ,in general ,the amount of dividends taken into account under subsection 7a7 for each taxable year during the #e-taxable-year period described in subsection 7f77#a7 shall not exceed the amount designated in the election under subsection 7f77#c7 reduced by the sum of-- 7i7 the aggregate amount of dividends taken into account under subsection 7a7 in prior taxable years in such #e-taxable-year period1 and 7ii7 the sum of the dividend shortfalls for each such prior taxable year4 7,b7 ,dividend shortfall ,for purposes of subparagraph 7,a71 the dividend shortfall for any taxable year is an amount equal to the excess 7if any7 of-- 7i7 #bj percent of the amount designated under subsection 7f77#c71 over 7ii7 the amount of dividends taken into account under subsection 7a7 for such taxable year4 4 7d7 ,dividend reinvestment plan requirements ,paragraph 7#e7 of section #ife7;b7 of the ,internal ,revenue ,code of #aihf1 as redesignated by subsection 7c71 is amended to read as follows3 7#e7 ,requirement to invest in united states 7,a7 ,in general ,subsection 7a7 shall not apply to any dividends received by a ,united ,states shareholder unless the amount of the dividends is invested in the ,united ,states pursuant to a domestic reinvestment plan which-- 7i7 is approved by the taxpayer's president1 chief executive officer1 or comparable official before the payment of such dividend and subsequently approved by the taxpayer's board of directors1 management committee1 executive committee1 or similar body1 7ii7 provides that not less than #be percent of such dividends will be used-- 7,i7 to increase workforce1 to raise wages and benefits1 or to increase pension contributions1 7,,ii7 to provide for energy efficiency improvements either through investment in new property or the retrofitting of existing property1 7,,iii7 to provide for environmental improvements1 such as carbon offsets1 water efficiency1 or environmental remediation1 7,,iv7 to invest in public-private partnerships and the improvement of public infrastructure1 7,v7 to make capital improvements1 7,,vi7 for the acquisition of other businesses1 or 7,,vii7 for research and development1 and 7iii7 provides that none of such dividends will be used during the period covered by the domestic reinvestment plan to compensate any employee who is the chief executive officer 7or is an individual acting in such a capacity71 or who is among the #d highest compensated employees1 in excess of the level of compensation paid to individuals in such capacity during the taxable year immediately preceding the taxable year to which an election under this section applies4 ,for purposes of clause 7iii71 compensation shall be determined under rules similar to the rules for reporting executive officer compensation to shareholders under the ,securities ,exchange ,act of #aicd4 7,b7 ,use of certain funds 7i7 ,in general ,except as provided in clause 7ii71 dividends shall be treated as meeting the requirements of subclauses 7,i71 7,v71 and 7,,vii7 of subparagraph 7,a77ii7 only if such amounts supplement but do not supplant otherwise planned funding for such purposes4 ,such planned funding shall be certified by the individual and entity approving the domestic reinvestment plan4 7ii7 ,exception ,clause 7i7 shall not apply if the aggregate funding for the purposes described in subclauses 7,i71 7,v71 and 7,,vii7 of subparagraph 7,a77ii7 for the #e-taxable-year period described in subsection 7f77#a7 exceeds #abe percent of the amount spent for such purposes during the #e-year period ending with the last day of the most recent taxable year ending before ,january #a1 #bjae4 ,rules similar to the rules of subparagraphs 7,b7 and 7,c7 of subsection 7c77#b7 shall apply for purposes of determining the #e-year period under the preceding sentence4 7,c7 ,compliance ,under regulations established by the ,secretary1 any taxpayer making an election under this section shall submit to the ,secretary-- 7i7 the domestic reinvestment plan required under this paragraph1 and 7ii7 annually thereafter1 such information as required by the ,secretary for purposes of determining such taxpayer's compliance with the plan1 including contemporaneous documentation of compliance and retention requirements for a period of time as determined by the ,secretary as appropriate4 4 7e7 ,special rules for inverted corporations 7#a7 ,in general ,subsection 7b7 of section #ife is amended by adding at the end the following new paragraph3 7#f7 ,denial of deduction for certain companies ,no deduction shall be allowed under subsection 7a7 with respect to any expatriated entity 7as defined in section #ghgd7;a77#b774 4 7#b7 ,recapture ,section #ife of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7g7 ,recapture 7#a7 ,in general ,in the case of a taxpayer who makes an election under subsection 7f7 and who is an expatriated entity-- 7,a7 the tax imposed by this chapter shall be increased for the first taxable year in which such taxpayer becomes an expatriated entity by an amount equal to #bj percent of the amount designated under subsection 7f77#c71 and 7,b7 no credits shall be allowed against the increase in tax under subparagraph 7,a74 7#b7 ,expatriated entity ,for purposes of this subsection1 the term expatriated entity has the same meaning given such term under section #ghgd7;a77#b71 except that-- 7,a7 during the #aj-year period beginning with the first taxable year after #bjac to which section #ife applies shall be substituted for after ,march #d1 #bjjc in subparagraph 7,b77i71 and 7,b7 the first taxable year after #bjac to which section #ife applies shall be substituted for ,march #d1 #bjjc in the matter following subparagraph 7,b77iii74 4 7f7 ,effective date ,the amendments made by this section shall apply to taxable years ending after the date of the enactment of this ,act4 #c4 ,transfers to ,highway ,trust ,fund 7a7 ,in general ,subsection 7f7 of section #iejc of the ,internal ,revenue ,code of #aihf is amended by redesignating paragraph 7#g7 as paragraph 7#h7 and by inserting after paragraph 7#f7 the following new paragraph3 7#g7 ,transfer of revenues from repatriation holiday 7,a7 ,initial transfer 7i7 ,in general ,not later than #fj days after the date of the enactment of this ,act1 the ,secretary shall estimate the amount of revenues to be received in the ,treasury after the date of the enactment of this paragraph and before ,october #a1 #bjai1 from income taxes imposed on dividends which are taken into account under section #ife4 7ii7 ,transfer ,out of money in the ,treasury not otherwise appropriated1 there is hereby appropriated-- 7,i7 to the ,highway ,account 7as defined in subsection 7e77#e77;,b77 in the ,highway ,trust ,fund an amount equal to #hj percent of the amount estimated under subparagraph 7,a71 and 7,,ii7 to the ,mass ,transit ,account in the ,highway ,trust ,fund an amount equal to #bj percent of the amount so estimated4 7,b7 ,additional transfer 7i7 ,in general ,not later than ,october #a1 #bjbc1 the ,secretary shall determine the amount of revenues received in the ,treasury from income taxes imposed on dividends which were taken into account under section #ife during the period described in subparagraph 7,a77i74 7ii7 ,transfer ,if the amount determined under clause 7i7 exceeds the amount transferred under subparagraph 7,a77ii71 out of money in the ,treasury not otherwise appropriated1 there is hereby appropriated-- 7,i7 to the ,highway ,account 7as defined in subsection 7e77#e77;,b77 in the ,highway ,trust ,fund an amount equal to the applicable percentage of such excess1 and 7,,ii7 to the ,mass ,transit ,account in the ,highway ,trust ,fund an amount equal to #bj percent of so much of such excess as does not exceed the applicable amount4 7iii7 ,applicable percentages ,for purposes of clause 7ii71 the applicable percentage is-- 7,i7 #hj percent with respect to so much of excess under subparagraph 7,b77ii7 as does not exceed the applicable amount1 and 7,,ii7 #ajj percent with respect the amount of such excess to which subclause 7,i7 does not apply4 7iv7 ,applicable amount ,for purposes of this subparagraph1 the applicable amount is the amount 7not less than zero7 equal to the excess of-- 7,i7 #fb1jjj1jjj1jjj1 over 7,,ii7 the amount transferred under subparagraph 7,a77ii74 4 7b7 ,return of excess transfers 7#a7 ,in general ,subsection 7c7 of section #iejc of such ,code is amended by adding at the end the following new paragraph3 7#f7 ,return of excess transfers ,if the amount of transfers under subparagraph 7,a77ii7 of subsection 7f77#g7 exceeds the amount determined under subparagraph 7,b77i7 of such subsection1 the ,secretary shall pay to the general fund of the ,treasury from the ,highway ,trust ,fund not later than ,october #a1 #bjbc1 an amount equal to such excess4 4 7#b7 ,portion from mass transit account ,paragraph 7#e7 of section #iejc of such ,code is amended by adding at the end the following new subparagraph3 7,c7 ,amounts related to certain excess transfers #bj percent of any transfer under paragraph 7#f7 of subsection 7c7 shall be borne by the ,mass ,transit ,account4 4 #d4 ,repair1 replacement1 and rehabilitation of deficient bridges 7a7 ,deficient bridge amount ,for purposes of this section1 the deficient bridge amount is so much of the amount transferred to the ,highway ,account 7as defined in section #iejc7;e77#e77;,b7 of the ,internal ,revenue ,code of #aihf7 in the ,highway ,trust ,fund under section #iejc7;f77#g77;,b7 of such ,code as exceeds the applicable amount 7as defined in section #iejg7;f77#g77;,b77iv7 of such ,code74 7b7 ,authorization of appropriations 7#a7 ,in general ,there is authorized to be appropriated out of the ,highway ,trust ,fund 7other than the ,mass ,transit ,account7 an amount equal to the deficient bridge amount to be used for the repair1 replacement1 or rehabilitation of deficient bridges eligible for assistance under chapter #a of title #bc1 ,united ,states ,code4 7#b7 ,calculation of ,state amounts 7,a7 ,state apportionments ,the ,secretary of ,transportation shall apportion the amount authorized to be appropriated under this subsection among the ,states in accordance with subparagraph 7,b74 7,b7 ,state shares ,the amount for each ,state shall be determined by multiplying the total amount available under this subsection by the share for each ,state1 which shall be equal to the proportion that-- 7i7 the amount of apportionments that the ,state received under title #bc1 ,united ,states ,code1 for fiscal year #bjai2 bears to 7ii7 the amount of those apportionments received by all ,states for that fiscal year4 7#c7 ,contract authority ,funds authorized to be appropriated by this subsection shall-- 7,a7 be available for obligation in the same manner as if the funds were apportioned under chapter #a of title #bc1 ,united ,states ,code2 and 7,b7 remain available until expended and not be transferrable4