,,ii  #aaf? ,,congress  #b;d ,session   
,s4 #cdbe  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,m>* #aj1 #bjbj,mrs4   
,gillibr& 7= h]self1 ,ms4 ,baldw91 &    
,mr4 ,pet]s7 introduc$ ! foll[+ bill2   
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
provide inc5tives = bus9esses to keep   
jobs 9 ,am]ica1 & = o!r purposes4  #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 section1 ! ,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$uctions &   
acc\nt+ me?ods = outs\rc+ employ]s  7a7 
,9 g5]al ,"p ,,ix ( sub*apt] ,b ( *apt] 
#a ( ! ,int]nal ,rev5ue ,code ( #aihf1 z
 am5d$ by section #c1 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 may n use !   

me?od provid$ 9 section #dgb7;b7 9      
inv5tory+ goods1  7#b7 may n use ! l[] (
 co/ or m>ket me?od ( det]m9+ inv5tories
 = purposes ( det]m9+ income1 &  7#c7   
%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 ( #aihf1 z am5d$ 
by section #c1 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 ,au?ority = ,f$]al ag5cies to
 take ! outs\rc+ ( jobs f ! ,unit$      
,/ates into acc\nt = grants1 loans1 &   
loan gu>antees  7a7 ,disclosure (       
outs\rc+ ( jobs  7#a7 ,9 g5]al ,! head (

 any ,f$]al ag5cy1 or _! delegate1 %all 
require any entity t submits a reque/ = 
an applicable ag5cy action to disclose 9
 ! reque/ if su* entity1 or any         
subsidi>y ( su* entity1 owns a facility 
= :i* !re is an outs\rc+ ev5t dur+ !    
#c-ye> p]iod end+ on ! date ( !         
submission ( ! reque/4  7#b7 ,outs\rc+  
ev5t ,= purposes ( p>agraph 7#a71 ! t]m 
outs\rc+ ev5t means a plant clos+ or    
mass lay(f 7z describ$ 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* ,act71 exce$s #ej          
employees4  7b7 ,consid]ation au?ority  
7#a7 ,9 g5]al ,9 consid]+ a reque/ by an
 entity = an applicable ag5cy action1 ! 
head ( any ,f$]al ag5cy1 z well z any   
(fic]s1 employees1 & contractors ( su*  
,ag5cy1 %all take into acc\nt any       

disclosure made pursuant to subsection  
7a7 = purposes ( su* reque/4  7#b7      
,negative pref]5ce ,! head ( any ,f$]al 
ag5cy %all e/abli% a negative pref]5ce (
 n less ?an #aj p]c5t ( ! scor+         
evaluation = any reque/ = an applicable 
ag5cy action by an entity t makes a     
disclosure pursuant to subsection 7a74  
7c7 ,s5se ( ,congress ,x is ! s5se (    
,congress t ,f$]al ag5cies %\ld1 9      
consid]+ reque/s by entities = any      
applicable ag5cy action1 exclude        
entities mak+ a disclosure ( an outs\rc+
 ev5t pursuant to subsection 7a7 on !   
gr\nds t ! actions describ$ 9 !         
disclosures are aga9/ ! public int]e/s (
 ! ,unit$ ,/ates4  7d7 ,annual report ,!
 head ( ea* ,f$]al ag5cy %all submit to 
,congress ea* ye> a report on ! foll[+3 
7#a7 ,! numb] ( entities mak+ a         
disclosure ( an outs\rc+ ev5t pursuant  
to subsection 7a7 9 reg>ds to a reque/ =
 applicable ag5cy action dur+ ! prec$+  
ye>4  7#b7 ,! numb] ( reque/s =         
applicable ag5cy action :i* 7 grant$ by 

! ag5cy dur+ ! prec$+ ye> 9 :i* su*     
disclosures 7 tak5 into acc\nt4  7e7    
,applicable ag5cy action ,= purposes (  
?is section1 ! t]m applicable ag5cy     
action means any grant1 loan1 or loan   
gu>antee aw>d$ or issu$ by a ,f$]al     
ag5cy4  #f4 ,recapture ( cr$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  ,h       
,recapture ( ,cr$its = ,outs\rc+        
,employ]s  ,sec4 #ed4 ,recapture (      
cr$its = outs\rc+ employ]s4  #ed4       
,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 ,h--,recapture (    

cr$its = outs\rc+ employ]s  4  7c7      
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #g4 ,cr$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,t4  
,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 9s\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#ca71 by
 /rik+ ! p]iod at ! end ( p>agraph 7#cb7
 & ins]t+ 1 plus1 & by add+ at ! end !  
foll[+ new p>agraph3  7#cc7 ! ins\rc+   
exp5ses cr$it det]m9$ "u section        
#de,t7a74  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,t4 ,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,t ( ! ,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,t (  
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,t (  
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  #h4    
,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 %all take 
into acc\nt any disclosure made pursuant
 to subsection 7a7 9 su* bids &         
proposals4  7#b7 ,! head ( an ag5cy %all
 e/abli% a negative pref]5ce ( no less  
?an #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#d71 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 %all take into acc\nt   
any disclosure made pursuant to         
subsection 7a7 9 su* bids & proposals4  

7#b7 ,! head ( an executive ag5cy %all  
e/abli% a negative pref]5ce ( no less   
?an #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  #i4 ,curr5t ye> inclusion ( 
net ,,cfc te/$ income  7a7 ,repeal (    
tax-,free deem$ return on inve/m5ts     
7#a7 ,9 g5]al ,section #iea;,a7a7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 

by /rik+ global intangible l[-tax$      
income & ins]t+ net ,,cfc te/$ income4  
7#b7 ,con=m+ am5dm5ts  7,a7 ,section    
#iea;,a ( su* ,code is am5d$ by /rik+   
subsections 7b7 & 7d74  7,b7 ,section   
#iea;,a7e77#a7 ( su* ,code is am5d$ by  
/rik+ subsections 7b71 7c77#a77;,a71 & &
 ins]t+ subsections 7c77#a77;,a7 &4     
7,c7 ,section #iea;,a7f7 ( su* ,code is 
am5d$ to read z foll[s3  7f7 ,treatm5t z
 subp>t ,f income = c]ta9 purposes  7#a7
 ,9 g5]al ,except z provid$ 9 p>agraph  
7#b71 any net ,,cfc te/$ income includ$ 
9 gross income "u subsection 7a7 %all be
 treat$ 9 ! same mann] z an am\nt       
includ$ "u section #iea7;a77#a77;,a7 =  
purposes ( apply+ sections              
#afh7;h77#b77;,b71 #ece7;b77#aj71       
#hea7;b71 #ijd7;h77#a71 #iei1 #ifa1     
#ifb1 #iic7;a77#a77;,e71 #iif7;f77#a71  
#abdh7;b77#a71 #abdh7;d77#a71           
#feja7;e77#a77;,c71 #ffed7;d77#b77;,d71 
& #ffee7;e77#d74  7#b7 ,exception ,!    
,secret>y %all provide rules = !        
application ( p>agraph 7#a7 to o!r      

provisions ( ?is title 9 any case 9 :i* 
! det]m9ation ( subp>t ,f income is     
requir$ to be made at ! level ( !       
controll$ =eign corporation4  4  7,d7   
,section #ifj7;d77#b77;,a7 ( su* ,code  
is am5d$ by /rik+ global intangible     
l[-tax$ income 7z def9$ 9 section       
#iea;,a7b77 & ins]t+ net ,,cfc te/$     
income 7z def9$ 9 section #iea;,a7c774  
7b7 ,repeal ( r$uc$ rate ( tax on net   
,,cfc te/$ income  7#a7 ,9 g5]al ,"p    
,,viii ( sub*apt] ,b ( *apt] #a ( su*   
,code is am5d$ by /rik+ section #bej 7& 
by /rik+ ! item relat+ to su* section 9 
! table ( sections ( su* "p74  7#b7     
,con=m+ am5dm5ts  7,a7 ,section         
#ei;,a7c77#d77;,b77i7 ( su* ,code is    
am5d$ by /rik+ section #agb1 #bde;,a1 or
 #bej & ins]t+ section #agb or #bde;,a4 
7,b7 ,section #agb7;d7 ( su* ,code is   
am5d$ by /rik+ p>agraph 7#i74  7,c7     
,section #bdf7;b77#a7 ( su* ,code is    
am5d$-- 7i7 by /rik+ subsection 7a7 &   
7b7 ( section #bde1 & section #bej &    
ins]t+ & subsection 7a7 & 7b7 ( section 

#bde2 &  7ii7 by /rik+ subsection 7a7 & 
7b7 ( section #bde1 & #bej & ins]t+ &   
subsection 7a7 & 7b7 ( section #bde4    
7,d7 ,section #dfi7;i77#c77;,f77iii7 is 
am5d$ by /rik+ #bbb1 & #bej & ins]t+ &  
#bbb4  7c7 ,net ,,cfc te/$ income       
det]m9$ )\t reg>d to high tax =eign     
income ,section #iea;,a7c77#b77;,a77i7 (
 su* ,code is am5d$ by r$esignat+       
subclauses 7,,iv7 & 7,v7 z subclauses   
7,v7 & 7,,vi71 respectively1 & by ins]t+
 aft] subclause 7,,iii7 ! foll[+ new    
subclause3  7,,iv7 any item ( income    
subject to an effective rate ( income   
tax impos$ by a =eign c\ntry great] ?an 
! maximum rate ( tax specifi$ 9 section 
#aa1  4  7d7 ,repeal ( exclusion ( =eign
 oil & gas extraction income f !        
det]m9ation ( te/$ income ,section      
#iea;,a7c77#b77;,a77i7 ( su* ,code1 z   
am5d$ by subsection 7c7 is am5d$-- 7#a7 
by add+ & at ! end ( subclause 7,,iv72  
7#b7 by /rik+ & at ! end ( subclause    
7,v7 & ins]t+ ov]2 &  7#c7 by /rik+     
subclause 7,,vi74  7e7 ,increase 9 deem$

 paid cr$it = taxes prop]ly attributable
 to te/$ income  7#a7 ,9 g5]al ,section 
#ifj7;d7 ( su* ,code is am5d$ by /rik+  
#hj p]c5t (4  7#b7 ,con=m+ am5dm5t      
,section #gh ( su* ,code is am5d$ by    
/rik+ 7det]m9$ )\t reg>d to ! phrase    
8#hj p]c5t (0 9 subsection 7d77#a7      
!re(74  7f7 ,effective date  7#a7 ,9    
g5]al ,except z o!rwise provid$ 9 ?is   
subsection1 ! am5dm5ts made by ?is      
section %all apply to taxable ye>s (    
=eign corporations beg9n+ aft] ,decemb] 
#ca1 #bjai1 & to taxable ye>s ( ,unit$  
,/ates %>ehold]s 9 :i* or ) :i* su*     
taxable ye>s ( =eign corporations end4  
7#b7 ,repeal ( r$uc$ rate ( tax2        
increase 9 deem$ paid cr$it ,! am5dm5ts 
made by subsection 7b7 & 7e7 %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjai4