,,ii  #aae? ,,congress  #a/ ,session    
,s4 #bcd  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,janu>y #bd1 #bjag,mr4 
,donnelly 7= himself1 ,mrs4 ,gillibr&1 &
 ,mr4 ,br[n7 introduc$ ! foll[+ bill2   
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
provide inc5tives = bus9esses to keep   
jobs 9 ,am]ica4  #a4 ,%ort title ,?is   
,act may be cit$ z ! ,end ,outs\rc+     
,act4  #b4 ,outs\rc+ /atem5t 9 work]    
adju/m5t & retra9+ notice  7a7 ,outs\rc+
 /atem5t ,section #c ( ! ,work]         
,adju/m5t & ,retra9+ ,notification ,act 
7#bi ,u4,s4,c4 #bajb7 is am5d$ by add+  
at ! end ! foll[+3  7e7 ,outs\rc+       
/atem5t  7#a7 ,9 g5]al ,= purposes (    
subsection 7a71 ! employ] %all include  
an outs\rc+ /atem5t 9 ! notice describ$ 
9 t subsection4 ,! outs\rc+ /atem5t %all
 specify :e!r "p or all ( ! positions   
held by affect$ employees cov]$ by      
subsection 7a7 w be mov$ to a c\ntry    
outside ! ,unit$ ,/ates1 reg>dless (    
:e!r ! positions are mov$ )9 ! bus9ess  

ent]prise involv$ or to ano!r bus9ess   
ent]prise4 ,! employ] %all make !       
det]m9ation ( :e!r ! positions are be+ s
 mov$ 9 accordance ) regulations issu$  
by ! ,secret>y4 ,! employ] %all s]ve !  
notice z requir$ "u subsection 7a7 &    
submit ! notice to ! ,secret>y ( ,labor4
  7#b7 ,li/ ,n less (t5 ?an annually1 ! 
,secret>y %all publi% & make available  
on ! website ( ! ,dep>tm5t ( ,labor1 a  
li/ includ+ ea* employ] :o--  7,a7 has  
includ$ an outs\rc+ /atem5t 9 a notice  
"u p>agraph 7#a72 or  7,b7 has incurr$  
liability "u section #e1 9 "p or 9 :ole1
 because ! employ] ord]$ a plant clos+  
or mass lay(f )\t hav+ s]v$ a notice t  
is requir$1 "u ?is section1 to include  
an outs\rc+ /atem5t4  4  7b7            
,implem5tation report ,! ,work]         
,adju/m5t & ,retra9+ ,notification ,act 
is am5d$ by ins]t+ aft] section #aj 7#bi
 ,u4,s4,c4 #baji7 ! foll[+3  #aj;,a4    
,implem5tation /udy  7a7 ,/udy ,!       
,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all conduct a /udy ( ! implem5tation ( 

section #c7;e7 ( ! ,work] ,adju/m5t &   
,retra9+ ,notification ,act 7#bi        
,u4,s4,c4 #bajb7;e77 by ! ,dep>tm5t (   
,labor4  7b7 ,report ,n lat] ?an #c ye>s
 aft] ! date ( enactm5t ( ?is ,act1 !   
,comptroll] ,g5]al %all submit to !     
appropriate committees ( ,congress a    
report conta9+ ! results ( ! /udy4  4   
#c4 ,d5ial ( d$uction = outs\rc+ exp5ses
  7a7 ,9 g5]al ,"p ,,ix ( sub*apt] ,b ( 
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #bhj;,i4 ,outs\rc+       
exp5ses  7a7 ,9 g5]al ,no d$uction      
o!rwise all[able "u ?is *apt] %all be   
all[$ = any specifi$ outs\rc+ exp5se4   
7b7 ,specifi$ outs\rc+ exp5se ,=        
purposes ( ?is section-- 7#a7 ,9 g5]al  
,! t]m specifi$ outs\rc+ exp5se means-- 
7,a7 any eligible exp5se paid or incurr$
 by ! taxpay] 9 connection ) !          
elim9ation ( any bus9ess unit ( !       
taxpay] 7or ( any memb] ( any exp&$     
affiliat$ gr\p 9 :i* ! taxpay] is also a
 memb]7 locat$ )9 ! ,unit$ ,/ates1 &    

7,b7 any eligible exp5se paid or incurr$
 by ! taxpay] 9 connection ) !          
e/abli%m5t ( any bus9ess unit ( !       
taxpay] 7or ( any memb] ( any exp&$     
affiliat$ gr\p 9 :i* ! taxpay] is also a
 memb]7 locat$ outside ! ,unit$ ,/ates1 
if su* e/abli%m5t con/itutes !          
relocation ( ! bus9ess unit s elim9at$4 
,= purposes ( ! prec$+ s5t5ce1 a        
relocation %all n be treat$ z fail+ to  
occur m]ely because su* elim9ation      
occurs 9 a diff]5t taxable ye> ?an su*  
e/abli%m5t4  7#b7 ,eligible exp5ses ,!  
t]m eligible exp5ses means-- 7,a7 any   
am\nt = :i* a d$uction is all[$ to !    
taxpay] "u section #afb1 &  7,b7 p]mit &
 lic5se fees1 lease brok]age fees1      
equipm5t in/allation co/s1 &1 to ! ext5t
 provid$ by ! ,secret>y1 o!r simil>     
exp5ses4  ,su* t]m does n include any   
comp5sation :i* is paid or incurr$ 9    
connection ) sev]ance f employm5t &1 to 
! ext5t provid$ by ! ,secret>y1 any     
simil> am\nt4  7#c7 ,bus9ess unit ,! t]m
 bus9ess unit means-- 7,a7 any trade or 

bus9ess1 &  7,b7 any l9e ( bus9ess1 or  
functional unit1 :i* is "p ( any trade  
or bus9ess4  7#d7 ,exp&$ affiliat$ gr\p 
,! t]m exp&$ affiliat$ gr\p means an    
affiliat$ gr\p z def9$ 9 section        
#aejd7;a71 det]m9$ )\t reg>d to section 
#aejd7;b77#c7 & by sub/itut+ m ?an #ej  
p]c5t = at lea/ #hj p]c5t ea* place x   
appe>s 9 section #aejd7;a74 ,a p>tn]%ip 
or any o!r entity 7o!r ?an a            
corporation7 %all be treat$ z a memb] ( 
an exp&$ affiliat$ gr\p if su* entity is
 controll$ 7)9 ! mean+ ( section        
#ied7;d77#c77 by memb]s ( su* gr\p      
7includ+ any entity treat$ z a memb] (  
su* gr\p by reason ( ?is p>agraph74     
7#e7 ,op]at+ exp5ses n tak5 into acc\nt 
,any am\nt paid or incurr$ 9 connection 
) ! ongo+ op]ation ( a bus9ess unit %all
 n be treat$ z an am\nt paid or incurr$ 
9 connection ) ! e/abli%m5t or          
elim9ation ( su* bus9ess unit4  7c7     
,special rules  7#a7 ,application to    
d$uctions = depreciation & amortization 
,9 ! case ( any portion ( a specifi$    

outs\rc+ exp5se :i* is n d$uctible 9 !  
taxable ye> 9 :i* paid or incurr$1 su*  
portion %all nei!r be *>geable to       
capital acc\nt nor amortizable4  7#b7   
,possessions treat$ z "p ( ! ,unit$     
,/ates ,= purposes ( ?is section1 ! t]m 
,unit$ ,/ates %all be treat$ z includ+  
ea* possession ( ! ,unit$ ,/ates        
7includ+ ! ,commonweal? ( ,pu]to ,rico &
 ! ,commonweal? ( ! ,nor!rn ,m>iana     
,isl&s74  7d7 ,regulations ,! ,secret>y 
%all prescribe su* regulations or o!r   
guidance z may be necess>y or           
appropriate to c>ry out ! purposes ( ?is
 section1 includ+ regulations :i*       
provide 7or create a rebuttable         
presumption7 t c]ta9 e/abli%m5ts (      
bus9ess units outside ! ,unit$ ,/ates w 
be treat$ z relocations 7bas$ on tim+ or
 su* o!r factors z ! ,secret>y may      
provide7 ( bus9ess units elim9at$ )9 !  
,unit$ ,/ates4  4  7b7 ,limitation on   
subp>t ,f income ( controll$ =eign      
corporations det]m9$ )\t reg>d to       
specifi$ outs\rc+ exp5ses ,subsection   

7c7 ( section #ieb ( su* ,code is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#d7 ,e>n+s & pr(its det]m9$ )\t reg>d  
to specifi$ outs\rc+ exp5ses ,= purposes
 ( ?is subsection1 e>n+s & pr(its ( any 
controll$ =eign corporation %all be     
det]m9$ )\t reg>d to any specifi$       
outs\rc+ exp5se 7z def9$ 9 section      
#bhj;,i7b774  4  7c7 ,cl]ical am5dm5t ,!
 table ( sections = "p ,,ix ( sub*apt]  
,b ( *apt] #a ( su* ,code is am5d$ by   
add+ at ! end ! foll[+ new item3  ,sec4 
#bhj;,i4 ,outs\rc+ exp5ses4  4  7d7     
,effective date ,! am5dm5ts made by ?is 
section %all apply to am\nts paid or    
incurr$ aft] ! date ( ! enactm5t ( ?is  
,act4  #d4 ,d5ial ( c]ta9 d$uctions &   
acc\nt+ me?ods = outs\rc+ employ]s  7a7 
,9 g5]al ,"p ,,ix ( sub*apt] ,b ( *apt] 
#a ( ! ,int]nal ,rev5ue ,code ( #aihf is
 am5d$ by add+ at ! end ! foll[+ new    
section3  #bhj;,j4 ,limitations =       
outs\rc+ employ]s  7a7 ,9 g5]al ,dur+ ! 
disall[ance p]iod1 an applicable        
taxpay]-- 7#a7 %all n be all[$ any      

d$uction "u section #aii = any income ( 
! taxpay]1  7#b7 may n use ! me?od      
provid$ 9 section #dgb7;b7 9 inv5tory+  
goods1  7#c7 may n use ! l[] ( co/ or   
m>ket me?od ( det]m9+ inv5tories =      
purposes ( det]m9+ income1 &  7#d7 %all 
n be all[$ any d$uction "u section #afc 
= int]e/ paid or accru$ on indebt$ness4 
7b7 ,applicable taxpay] ,= purposes (   
subsection 7a71 ! t]m applicable taxpay]
 means a taxpay] :i*--  7#a7 dur+ !     
taxable ye>1 has s]v$ writt5 notice "u  
subsection 7a7 ( section #c ( ! ,work]  
,adju/m5t & ,retra9+ ,notification ,act 
:i* includes an outs\rc+ /atem5t        
describ$ 9 subsection 7e7 ( su* section1
 &  7#b7 ! cumulative employm5t loss    
7exclud+ any "p-"t employees7 =         
positions at facilities own$ by su*     
taxpay] :i* w be mov$ to a c\ntry       
outside ( ! ,unit$ ,/ates1 z det]m9$    
pursuant to any outs\rc+ /atem5ts s]v$  
by su* taxpay] dur+ su* taxable ye>1    
exce$s #ej employees4  7c7 ,disall[ance 
p]iod ,= purposes ( subsection 7a71 !   

disall[ance p]iod is ! p]iod ( #c       
taxable ye>s aft] ! taxable ye> 9 :i* ! 
/atem5ts describ$ 9 subsection 7b77#b7  
are requir$ to be s]v$4  7d7 ,exp&$     
affiliat$ gr\p treat$ z s+le taxpay] ,= 
purposes ( ?is section1 ! memb]s ( an   
exp&$ affiliat$ gr\p 7z def9$ 9 section 
#bhj;,i7b77#d77 %all be treat$ z a s+le 
taxpay]4  7e7 ,regulations ,! ,secret>y 
%all prescribe su* regulations or o!r   
guidance z may be necess>y or           
appropriate to c>ry out ! purposes ( ?is
 section4  4  7b7 ,cl]ical am5dm5t ,!   
table ( sections = "p ,,ix ( sub*apt] ,b
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by add+ at ! end !      
foll[+ new item3  ,sec4 #bhj;,j4        
,limitations = outs\rc+ employ]s4  4    
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #e4 ,recapture ( cr$its =        
outs\rc+ employ]s  7a7 ,9 g5]al ,"p ,,iv
 ( sub*apt] ,a ( *apt] #a ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by add+  

at ! end ! foll[+ new subp>t3  ,k       
,recapture ( cr$its = outs\rc+ employ]s 
,sec4 #ed;,,bb4 ,recapture ( cr$its =   
outs\rc+ employ]s4  #ed;,,bb4 ,recapture
 ( cr$its = outs\rc+ employ]s  7a7 ,9   
g5]al ,pursuant to regulations prescrib$
 by ! ,secret>y1 9 ! case ( a taxpay]   
:i* owns a facility = :i* !re is an     
outs\rc+ ev5t dur+ ! taxable ye>1 ! tax 
"u ?is *apt] = su* taxable ye> %all be  
increas$ by ! am\nt equal to ! sum (--  
7#a7 any cr$its all[$ "u ?is *apt]      
relat+ to exp5ses = design1 con/ruction1
 op]ation1 or ma9t5ance ( su* facility  
dur+ ! #e taxable ye>s prec$+ su*       
taxable ye>1 &  7#b7 any grants provid$ 
by ! ,secret>y 9 lieu ( cr$its describ$ 
9 p>agraph 7#a7 dur+ ! #e taxable ye>s  
prec$+ su* taxable ye>4  7b7 ,outs\rc+  
ev5t ,= purposes ( subsection 7a71 ! t]m
 outs\rc+ ev5t means a plant clos+ or   
mass lay(f 7z describ$ 9 section #b7;a7 
( ! ,work] ,adju/m5t & ,retra9+         
,notification ,act7 9 :i* ! employm5t   
loss 7exclud+ any "p-"t employees7 =    

positions :i* w be mov$ to a c\ntry     
outside ( ! ,unit$ ,/ates1 z det]m9$    
pursuant to ! outs\rc+ /atem5t 7z       
describ$ 9 p>agraph 7#a7 ( su* section  
#c7;e7 ( su* ,act7 s]v$ by ! taxpay]    
dur+ ! taxable ye>1 exce$s #ej          
employees4  7c7 ,exp&$ affiliat$ gr\p   
treat$ z s+le taxpay] ,= purposes ( ?is 
section1 ! memb]s ( an exp&$ affiliat$  
gr\p 7z def9$ 9 section #bhj;,i7b77#d77 
%all be treat$ z a s+le taxpay]4  4  7b7
 ,cl]ical am5dm5t ,! table ( subp>ts =  
"p ,,iv ( sub*apt] ,a ( *apt] #a ( su*  
,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,subp>t ,k4 ,recapture (    
cr$its = outs\rc+ employ]s  4  7c7      
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #f4 ,cr$it = ins\rc+ exp5ses  7a7
 ,9 g5]al ,subp>t ,d ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new section3  #de,s4  
,cr$it = ins\rc+ exp5ses  7a7 ,9 g5]al  

,= purposes ( section #ch1 ! ins\rc+    
exp5ses cr$it = any taxable ye> is an   
am\nt equal to #bj p]c5t ( ! eligible   
ins\rc+ exp5ses ( ! taxpay] :i* are tak5
 into acc\nt 9 su* taxable ye> "u       
subsection 7d74  7b7 ,eligible ins\rc+  
exp5ses ,= purposes ( ?is section-- 7#a7
 ,9 g5]al ,! t]m eligible ins\rc+       
exp5ses means--  7,a7 eligible exp5ses  
paid or incurr$ by ! taxpay] 9          
connection ) ! elim9ation ( any bus9ess 
unit ( ! taxpay] 7or ( any memb] ( any  
exp&$ affiliat$ gr\p 9 :i* ! taxpay] is 
also a memb]7 locat$ outside ! ,unit$   
,/ates1 &  7,b7 eligible exp5ses paid or
 incurr$ by ! taxpay] 9 connection ) !  
e/abli%m5t ( any bus9ess unit ( !       
taxpay] 7or ( any memb] ( any exp&$     
affiliat$ gr\p 9 :i* ! taxpay] is also a
 memb]7 locat$ )9--  7i7 a ,h,u,b,zone  
7z def9$ 9 section #c7p77#b7 ( ! ,small 
,bus9ess ,act 7#ae ,u4,s4,c4            
#fcb7p77#b7771 or  7ii7 a l[-income     
community 7z describ$ 9 section         
#de;,d7e771  if su* e/abli%m5t          

con/itutes ! relocation ( ! bus9ess unit
 s elim9at$4 ,= purposes ( ! prec$+     
s5t5ce1 a relocation %all n be treat$ z 
fail+ to occur m]ely because su*        
elim9ation occurs 9 a diff]5t taxable   
ye> ?an su* e/abli%m5t4  7#b7 ,eligible 
exp5ses ,! t]m eligible exp5ses means-- 
7,a7 any am\nt = :i* a d$uction is all[$
 to ! taxpay] "u section #afb1 &  7,b7  
p]mit & lic5se fees1 lease brok]age     
fees1 equipm5t in/allation co/s1 &1 to !
 ext5t provid$ by ! ,secret>y1 o!r      
simil> exp5ses4  ,su* t]m does n include
 any comp5sation :i* is paid or incurr$ 
9 connection ) sev]ance f employm5t &1  
to ! ext5t provid$ by ! ,secret>y1 any  
simil> am\nt4  7#c7 ,bus9ess unit ,! t]m
 bus9ess unit means-- 7,a7 any trade or 
bus9ess1 &  7,b7 any l9e ( bus9ess1 or  
functional unit1 :i* is "p ( any trade  
or bus9ess4  7#d7 ,exp&$ affiliat$ gr\p 
,! t]m exp&$ affiliat$ gr\p means an    
affiliat$ gr\p z def9$ 9 section        
#aejd7;a71 det]m9$ )\t reg>d to section 
#aejd7;b77#c7 & by sub/itut+ m ?an #ej  

p]c5t = at lea/ #hj p]c5t ea* place x   
appe>s 9 section #aejd7;a74 ,a p>tn]%ip 
or any o!r entity 7o!r ?an a            
corporation7 %all be treat$ z a memb] ( 
an exp&$ affiliat$ gr\p if su* entity is
 controll$ 7)9 ! mean+ ( section        
#ied7;d77#c77 by memb]s ( su* gr\p      
7includ+ any entity treat$ z a memb] (  
su* gr\p by reason ( ?is p>agraph74     
7#e7 ,exp5ses mu/ be pursuant to ins\rc+
 plan ,am\nts %all be tak5 into acc\nt  
"u p>agraph 7#a7 only to ! ext5t t su*  
am\nts are paid or incurr$ pursuant to a
 writt5 plan to c>ry out ! relocation   
describ$ 9 p>agraph 7#a74  7#f7 ,op]at+ 
exp5ses n tak5 into acc\nt ,any am\nt   
paid or incurr$ 9 connection ) ! on-go+ 
op]ation ( a bus9ess unit %all n be     
treat$ z an am\nt paid or incurr$ 9     
connection ) ! e/abli%m5t or elim9ation 
( su* bus9ess unit4  7c7 ,increas$      
dome/ic employm5t requirem5t ,no cr$it  
%all be all[$ "u ?is section unless !   
numb] ( full-"t equival5t employees ( ! 
taxpay] = ! taxable ye> = :i* ! cr$it is

 claim$ exce$s ! numb] ( full-"t        
equival5t employees ( ! taxpay] = ! la/ 
taxable ye> end+ be=e ! fir/ taxable ye>
 9 :i* su* eligible ins\rc+ exp5ses 7   
paid or incurr$4 ,= purposes ( ?is      
subsection1 full-"t equival5t employees 
has ! mean+ giv5 su* t]m "u section     
#de,r7d7 7& ! applicable rules ( section
 #de,r7e774 ,all employ]s treat$ z a    
s+le employ] "u subsection 7b71 7c71    
7m71 or 7o7 ( section #dad %all be      
treat$ z a s+le employ] = purposes ( ?is
 subsection4  7d7 ,cr$it all[$ ^u       
completion ( ins\rc+ plan  7#a7 ,9 g5]al
 ,except z provid$ 9 p>agraph 7#b71     
eligible ins\rc+ exp5ses %all be tak5   
into acc\nt "u subsection 7a7 9 !       
taxable ye> dur+ :i* ! plan describ$ 9  
subsection 7b77#e7 has be5 complet$ &   
all eligible ins\rc+ exp5ses pursuant to
 su* plan h be5 paid or incurr$4  7#b7  
,election to apply employm5t te/ & claim
 cr$it 9 fir/ full taxable ye> aft]     
completion ( plan ,if ! taxpay] elects !
 application ( ?is p>agraph1 eligible   

ins\rc+ exp5ses %all be tak5 into acc\nt
 "u subsection 7a7 9 ! fir/ taxable ye> 
aft] ! taxable ye> describ$ 9 p>agraph  
7#a74  7e7 ,possessions treat$ z "p ( ! 
,unit$ ,/ates ,= purposes ( ?is section1
 ! t]m ,unit$ ,/ates %all be treat$ z   
includ+ ea* possession ( ! ,unit$ ,/ates
 7includ+ ! ,commonweal? ( ,pu]to ,rico 
& ! ,commonweal? ( ! ,nor!rn ,m>iana    
,isl&s74  7f7 ,regulations ,! ,secret>y 
%all prescribe su* regulations or o!r   
guidance z may be necess>y or           
appropriate to c>ry out ! purposes ( ?is
 section4  4  7b7 ,cr$it ,to be "p (    
g5]al bus9ess cr$it ,subsection 7b7 (   
section #ch ( su* ,code is am5d$ by     
/rik+ plus at ! end ( p>agraph 7#ce71 by
 /rik+ ! p]iod at ! end ( p>agraph 7#cf7
 & ins]t+ 1 plus1 & by add+ at ! end !  
foll[+ new p>agraph3  7#cg7 ! ins\rc+   
exp5ses cr$it det]m9$ "u section        
#de,s7a74  4  7c7 ,cl]ical am5dm5t ,!   
table ( sections = subp>t ,d ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( su* ,code is  
am5d$ by add+ at ! end ! foll[+ new     

item3  ,sec4 #de,s4 ,cr$it = ins\rc+    
exp5ses4  4  7d7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to am\nts paid or incurr$ aft] ! date ( 
! enactm5t ( ?is ,act4  7e7 ,application
 to ,unit$ ,/ates possessions  7#a7     
,paym5ts to possessions  7,a7 ,mirror   
code possessions ,! ,secret>y ( !       
,treasury %all make p]iodic paym5ts to  
ea* possession ( ! ,unit$ ,/ates ) a    
mirror code tax sy/em 9 an am\nt equal  
to ! loss to t possession by reason (   
section #de,s ( ! ,int]nal ,rev5ue ,code
 ( #aihf4 ,su* am\nt %all be det]m9$ by 
! ,secret>y ( ! ,treasury bas$ on       
in=mation provid$ by ! gov]nm5t ( !     
respective possession4  7,b7 ,o!r       
possessions ,! ,secret>y ( ! ,treasury  
%all make annual paym5ts to ea*         
possession ( ! ,unit$ ,/ates :i* does n 
h a mirror code tax sy/em 9 an am\nt    
e/imat$ by ! ,secret>y ( ! ,treasury z  
be+ equal to ! aggregate b5efits t w\ld 
h be5 provid$ to resid5ts ( su*         
possession by reason ( section #de,s (  

su* ,code if a mirror code tax sy/em _h 
be5 9 effect 9 su* possession4 ,! prec$+
 s5t5ce %all n apply ) respect to any   
possession ( ! ,unit$ ,/ates unless su* 
possession has a plan1 :i* has be5      
approv$ by ! ,secret>y ( ! ,treasury1 "u
 :i* su* possession w promptly di/ribute
 su* paym5t to ! resid5ts ( su*         
possession4  7#b7 ,coord9ation ) cr$it  
all[$ aga9/ unit$ /ates income taxes ,no
 cr$it %all be all[$ aga9/ ,unit$ ,/ates
 income taxes "u section #de,s ( su*    
,code to any p]son--  7,a7 to :om a     
cr$it is all[$ aga9/ taxes impos$ by !  
possession by reason ( su* section1 or  
7,b7 :o is eligible = a paym5t "u a plan
 describ$ 9 p>agraph 7#a77;,b74  7#c7   
,def9itions & special rules  7,a7       
,possessions ( ! ,unit$ ,/ates ,=       
purposes ( ?is section1 ! t]m possession
 ( ! ,unit$ ,/ates includes !           
,commonweal? ( ,pu]to ,rico & !         
,commonweal? ( ! ,nor!rn ,m>iana ,isl&s4
  7,b7 ,mirror code tax sy/em ,=        
purposes ( ?is section1 ! t]m mirror    

code tax sy/em means1 ) respect to any  
possession ( ! ,unit$ ,/ates1 ! income  
tax sy/em ( su* possession if ! income  
tax liability ( ! resid5ts ( su*        
possession "u su* sy/em is det]m9$ by   
ref]5ce to ! income tax laws ( ! ,unit$ 
,/ates z if su* possession 7 ! ,unit$   
,/ates4  7,c7 ,treatm5t ( paym5ts ,=    
purposes ( section #acbd7;b77#b7 ( title
 #ca1 ,unit$ ,/ates ,code1 ! paym5ts "u 
?is section %all be treat$ 9 ! same     
mann] z a refund due f sections ref]r$  
to 9 su* section #acbd7;b77#b74  #g4    
,au?ority = ,f$]al contract+ (fic]s to  
take ! outs\rc+ ( jobs f ! ,unit$ ,/ates
 into acc\nt 9 aw>d+ contracts  7a7     
,dep>tm5t ( ,def5se & relat$ ag5cy      
contracts  7#a7 ,consid]ation ( outs\rc+
  7,a7 ,9 g5]al ,*apt] #acg ( title #aj1
 ,unit$ ,/ates ,code1 is am5d$ by ins]t+
 aft] section #bcbg ! foll[+ new        
section3  #bcbg;a4 ,contracts3          
consid]ation ( outs\rc+ ( jobs  7a7     
,disclosure ( outs\rc+ ( jobs  7#a7 ,9  
g5]al ,! head ( an ag5cy %all require a 

contractor t submits a bid or proposal 9
 response to a solicitation issu$ by !  
ag5cy to disclose 9 t bid or proposal if
 ! contractor1 or a subsidi>y ( !       
contractor1 owns a facility = :i* !re is
 an outs\rc+ ev5t dur+ ! ?ree-ye> p]iod 
end+ on ! date ( ! submittal ( ! bid or 
proposal4  7#b7 ,outs\rc+ ev5t ,=       
purposes ( p>agraph 7#a71 ! t]m outs\rc+
 ev5t means a plant clos+ or mass lay(f 
7z describ$ 9 section #b7;a7 ( ! ,work] 
,adju/m5t & ,retra9+ ,notification ,act7
 9 :i* ! employm5t loss 7exclud+ any    
"p-"t employees7 = positions :i* w be   
mov$ to a c\ntry outside ( ! ,unit$     
,/ates1 z det]m9$ pursuant to ! outs\rc+
 /atem5t 7z describ$ 9 p>agraph 7#a7 (  
su* section #c7;e7 ( su* ,act7 s]v$ by !
 taxpay] dur+ ! taxable ye>1 exce$s #ej 
employees4  7b7 ,consid]ation au?oriz$  
7#a7 ,ag5cy contract+ (fic]s consid]+   
bids or proposals 9 response to a       
solicitation issu$ by ! ag5cy may take  
into acc\nt any disclosure made pursuant
 to subsection 7a7 9 su* bids &         

proposals4  7#b7 ,! head ( an ag5cy may 
e/abli% a negative pref]5ce ( up to #aj 
p]c5t ( ! co/ ( a contract = purposes ( 
evaluat+ a bid or proposal ( a          
contractor t makes a disclosure pursuant
 to subsection 7a74  7c7 ,s5se (        
,congress ,x is ! s5se ( ,congress t    
ag5cy contract+ (fic]s %\ld1 us+ section
 #bcjd7;b77#c7 ( ?is title1 exclude     
contractors mak+ a disclosure pursuant  
to subsection 7a7 9 response to         
solicitations issu$ by ! ag5cy f ! bidd+
 process 9 connection ) su*             
solicitations on ! gr\nds t ! actions   
describ$ 9 ! disclosures are aga9/ !    
public int]e/s ( ! ,unit$ ,/ates4  7d7  
,annual report ,! head ( ea* ag5cy %all 
submit to ,congress ea* ye> a report on 
! foll[+3 7#a7 ,! numb] ( solicitations 
made by ! ag5cy dur+ ! prec$+ ye> = :i* 
disclosures 7 made pursuant to          
subsection 7a7 9 responsive bids or     
proposals4  7#b7 ,! numb] ( contracts   
aw>d$ by ! ag5cy dur+ ! prec$+ ye> 9 :i*
 su* disclosures 7 tak5 into acc\nt 9 ! 

contract aw>d4  4  7,b7 ,cl]ical am5dm5t
 ,! table ( sections at ! beg9n+ ( *apt]
 #acg ( su* title is am5d$ by ins]t+    
aft] ! item relat+ to section #bcbg !   
foll[+ new item3  #bcbg;a4 ,contracts3  
consid]ation ( outs\rc+ ( jobs4  4  7#b7
 ,exclusion ( firms f s\rces ,section   
#bcjd7;b7 ( su* title is am5d$-- 7,a7 by
 r$esignat+ p>agraphs 7#c7 & 7#d7 z     
p>agraphs 7#d7 & 7#e71 respectively2    
7,b7 by ins]t+ aft] p>agraph 7#b7 !     
foll[+ new p>agraph3  7#c7 ,! head ( an 
ag5cy may provide = ! procurem5t (      
prop]ty & s]vices cov]$ by ?is *apt] us+
 competitive proc$ures b exclud+ a s\rce
 mak+ a disclosure pursuant to section  
#bcbg;a7a7 ( ?is title 9 ! bid or       
proposal 9 response to ! solicitation   
issu$ by ! ag5cy if ! head ( ! ag5cy    
det]m9es t ! actions describ$ by        
disclosure are aga9/ ! public int]e/s ( 
! ,unit$ ,/ates & ! s\rce is to be      
exclud$ on ^? gr\nds4 ,any su*          
det]m9ation %all take into acc\nt ! s5se
 ( ,congress set =? 9 section #bcbg;a7c7

 ( ?is title4  2 &  7,c7 9 p>agraph     
7#c71 z s r$esignat$1 by /rik+ p>agraphs
 7#a7 & 7#b7 & ins]t+ p>agraphs 7#a71   
7#b71 & 7#c74  7b7 ,o!r ,f$]al contracts
  7#a7 ,consid]ation ( outs\rc+ ,*apt]  
#ce ( title #da1 ,unit$ ,/ates ,code1 is
 am5d$ by ins]t+ aft] section #ccjc !   
foll[+ new section3  #ccjc;a4 ,bidd]s   
outs\rc+ jobs3 disclosure ( outs\rc+2   
consid]ation ( outs\rc+ 9 aw>d2         
exclusion f s\rces  7a7 ,disclosure (   
outs\rc+ ( jobs  7#a7 ,9 g5]al ,! head (
 an executive ag5cy %all require a      
contractor t submits a bid or proposal 9
 response to a solicitation issu$ by !  
executive ag5cy to disclose 9 t bid or  
proposal if ! contractor1 or a subsidi>y
 ( ! contractor1 owns a facility = :i*  
!re is an outs\rc+ ev5t dur+ ! ?ree-ye> 
p]iod end+ on ! date ( ! submittal ( !  
bid or proposal4  7#b7 ,outs\rc+ ev5t ,=
 purposes ( p>agraph 7#a71 ! t]m        
outs\rc+ ev5t means a plant clos+ or    
mass lay(f 7z describ$ 9 section #b7;a7 
( ! ,work] ,adju/m5t & ,retra9+         

,notification ,act7 9 :i* ! employm5t   
loss 7exclud+ any "p-"t employees7 =    
positions :i* w be mov$ to a c\ntry     
outside ( ! ,unit$ ,/ates1 z det]m9$    
pursuant to ! outs\rc+ /atem5t 7z       
describ$ 9 p>agraph 7#a7 ( su* section  
#c7;e7 ( su* ,act7 s]v$ by ! taxpay]    
dur+ ! taxable ye>1 exce$s #ej          
employees4  7b7 ,consid]ation au?oriz$  
7#a7 ,contract+ (fic]s ( an executive   
ag5cy consid]+ bids or proposals 9      
response to a solicitation issu$ by !   
executive ag5cy may take into acc\nt any
 disclosure made pursuant to subsection 
7a7 9 su* bids & proposals4  7#b7 ,!    
head ( an executive ag5cy may e/abli% a 
negative pref]5ce ( up to #aj p]c5t ( ! 
co/ ( a contract = purposes ( evaluat+ a
 bid or proposal ( a contractor t makes 
a disclosure pursuant to subsection 7a74
  7c7 ,exclusion f s\rces  7#a7 ,9 g5]al
 ,! head ( an executive ag5cy may       
provide = ! procurem5t ( prop]ty &      
s]vices us+ competitive proc$ures b     
exclud+ a s\rce mak+ a disclosure "u    

subsection 7a7 9 ! bid or proposal 9    
response to ! solicitation issu$ by !   
executive ag5cy if ! head ( ! executive 
ag5cy det]m9es t ! actions describ$ by  
disclosure are aga9/ ! public int]e/s ( 
! ,unit$ ,/ates & ! s\rce is to be      
exclud$ on ^? gr\nds4 ,any su*          
det]m9ation %all take into acc\nt ! s5se
 ( ,congress set =? 9 p>agraph 7#b74    
7#b7 ,s5se ( ,congress ,x is ! s5se (   
,congress t contract+ (fic]s ( executive
 ag5cies may use p>agraph 7#a7 to       
exclude contractors mak+ a disclosure   
pursuant to subsection 7a7 9 response to
 a solicitation issu$ by ! executive    
ag5cy f ! bidd+ process 9 connection ) !
 solicitation on ! gr\nds t ! actions   
describ$ by ! disclosure are aga9/ !    
public int]e/s ( ! ,unit$ ,/ates4  7d7  
,annual report ,! head ( ea* executive  
ag5cy %all submit to ,congress ea* ye> a
 report on ! foll[+3 7#a7 ,! numb] (    
solicitations made by ! executive ag5cy 
dur+ ! prec$+ ye> = :i* disclosures 7   
made pursuant to subsection 7a7 9       

responsive bids or proposals4  7#b7 ,!  
numb] ( contracts aw>d$ to contractors t
 disclos$ hav+ outs\rc$ m ?an #ej jobs  
dur+ ! prec$+ ?ree ye>s4  4  7#b7       
,cl]ical am5dm5t ,! table ( sections at 
! beg9n+ ( *apt] #ce ( su* title is     
am5d$ by ins]t+ aft] ! item relat+ to   
section #ccjc ! foll[+ new item3        
#ccjc;a4 ,bidd]s outs\rc+ jobs3         
disclosure ( outs\rc+2 consid]ation (   
outs\rc+ 9 aw>d2 exclusion f s\rces4  4 
7#c7 ,con=m+ am5dm5t ,section #ccja7;a7 
( su* title is am5d$ by ins]t+          
#ccjc;a7c71 aft] #ccjc14  7c7           
,regulations  7#a7 ,9 g5]al ,n lat] ?an 
#ahj days aft] ! date ( ! enactm5t ( ?is
 ,act1 ! ,f$]al ,acquisition ,regulatory
 ,c\ncil1 9 consultation ) ! heads (    
relevant ag5cies1 %all am5d ! ,f$]al    
,acquisition ,regulation & ! ,def5se    
,f$]al ,acquisition ,regulation         
,supplem5t to c>ry out ! requirem5ts (  
section #ccjc;a ( title #da1 ,unit$     
,/ates ,code1 & section #bcbg;a ( title 
#aj1 ,unit$ ,/ates ,code1 z add$ by ?is 

section4  7#b7 ,def9ition ( outs\rc+ ,= 
purposes ( def9+ outs\rc+ pursuant to   
p>agraph 7#a71 ! ,f$]al ,acquisition    
,regulatory ,c\ncil may utilize         
regulations prescrib$ by ! ,secret>y (  
,labor4  7d7 ,rule ( con/ruction ,?is   
section1 & ! am5dm5ts made by ?is       
section1 %all be appli$ 9 a mann]       
consi/5t ) ,unit$ ,/ates obligations "u 
int]national agreem5ts4