,,ii #aaf? ,,congress #b;d ,session ,s4 #djfg ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,june #bd1 #bjbj,mr4 ,durb9 7= himself1 ,ms4 ,duckwor?1 & ,mr4 ,van ,holl57 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to prohibit c]ta9 assi/ance = inv]t$ dome/ic corporations4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,am]ican ,assi/ance = ,am]ican ,companies ,act4 #b4 ,prohibition on application ( c]ta9 assi/ance to inv]t$ dome/ic corporations 7a7 ,prohibition on use ( c]ta9 tax inc5tives 7#a7 ,net op]at+ loss c>rybacks 7,a7 ,9 g5]al ,section #agb7;b77#a77;,d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new clause3 7vi7 ,special rule = inv]t$ dome/ic corporations ,clause 7i7 %all n apply to any =eign corporation = any taxable ye> 9 :i* su* corporation is an inv]t$ dome/ic corporation 7z def9$ 9 section #ggja7p77#b771 or to any memb] ( ! exp&$ affiliat$ gr\p 7z def9$ 9 section #ghgd7;c77#a77 ( su* a =eign corporation1 unless su* =eign corporation has made an election "u section #ggja7p77#a74 4 7,b7 ,effective date ,! am5dm5t made by ?is section %all take effect z if includ$ 9 section #bcjc7;b7 ( ! ,,c>es ,act4 7#b7 ,increas$ limitation on bus9ess int]e/ 7,a7 ,9 g5]al ,section #afc7;j77#aj7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,c7 ,special rule = inv]t$ dome/ic corporations ,subp>agraphs 7,a7 & 7,b7 %all n apply to any =eign corporation = any taxable ye> 9 :i* su* corporation is an inv]t$ dome/ic corporation 7z def9$ 9 section #ggja7p77#b771 or to any memb] ( ! exp&$ affiliat$ gr\p 7z def9$ 9 section #ghgd7;c77#a77 ( su* a =eign corporation1 unless su* =eign corporation has made an election "u section #ggja7p77#a74 4 7,b7 ,effective date ,! am5dm5t made by ?is section %all take effect z if includ$ 9 section #bcjf ( ! ,,c>es ,act4 7#c7 ,f$]al res]ve em]g5cy l5d+ facilities 7,a7 ,9 g5]al ,no inv]t$ dome/ic corporation1 z def9$ 9 section #ggja7p77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 or any memb] ( ! exp&$ affiliat$ gr\p 7z def9$ 9 section #ghgd7;c77#a7 ( su* ,code7 ( su* inv]t$ dome/ic corporation1 may p>ticipate 9 any program or facility e/abli%$ by ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em "u ! au?ority ( section #ac7c7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #cdc7 & ) fund+ au?oriz$ "u section #djjc ( ! ,,c>es ,act 7,public ,law #aaf-acf71 includ+ ! ,prim>y ,m>ket ,corporate ,cr$it ,facility & ! ,second>y ,m>ket ,corporate ,cr$it ,facility4 7,b7 ,exception ,subp>agraph 7,a7 %all n apply if ! inv]t$ dome/ic corporation makes an election "u section #ggja7p77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7,c7 ,applicability ,?is p>agraph %all apply to p>ticipation 9 any program or facility describ$ 9 subp>agraph 7,a7 e/abli%$ be=e1 on1 or aft] ! date ( enactm5t ( ?is ,act4 7b7 ,election ,to treat inv]t$ dome/ic corporations z dome/ic corporations 7#a7 ,inv]t$ dome/ic corporations ,section #ggja ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7p7 z subsection 7q7 & by ins]t+ aft] subsection 7o7 ! foll[+ new subsection3 7p7 ,inv]t$ dome/ic corporations 7#a7 ,election to be treat$ z a dome/ic corporation 7,a7 ,9 g5]al ,not)/&+ paragraphs 7#d7 & 7#e7 ( subsection 7a71 an inv]t$ dome/ic corporation may elect to be treat$ z a dome/ic corporation = taxable ye>s beg9n+ ) ! la/ taxable ye> :i* beg9s be=e ,janu>y #a1 #bjah4 7,b7 ,election ,an election "u ?is subsection-- 7i7 %all be made n lat] ?an #cj days aft] ! date ( ! enactm5t ( ?is subsection1 & 7ii7 once made1 %all be irrevocable4 7,c7 ,"t = fil+ returns & paym5t ( taxes ,not)/&+ sections #fjgb & #faea1 any return = any taxable ye> end+ be=e ! date describ$ 9 subp>agraph 7,b77i71 & any paym5t ( taxes or p5alties1 %all n be consid]$ due be=e ,janu>y #a1 #bjba4 7#b7 ,inv]t$ dome/ic corporation ,= purposes ( ?is subsection1 ! t]m inv]t$ dome/ic corporation means any =eign corporation :i*1 pursuant to a plan 7or a s]ies ( relat$ transactions7-- 7,a7 completes aft] ,m>* #d1 #bjjc1 ! direct or indirect acquisition (-- 7i7 sub/antially all ( ! prop]ties held directly or indirectly by a dome/ic corporation1 or 7ii7 sub/antially all ( ! assets (1 or sub/antially all ( ! prop]ties con/itut+ a trade or bus9ess (1 a dome/ic p>tn]%ip1 & 7,b7 aft] ! acquisition1 ei!r-- 7i7 m ?an #ej p]c5t ( ! /ock 7by vote or value7 ( ! corporation is held-- 7,i7 9 ! case ( an acquisition ) respect to a dome/ic corporation1 by =m] %>ehold]s ( ! dome/ic corporation by reason ( hold+ /ock 9 ! dome/ic corporation1 or 7,,ii7 9 ! case ( an acquisition ) respect to a dome/ic p>tn]%ip1 by =m] p>tn]s ( ! dome/ic p>tn]%ip by reason ( hold+ a capital or pr(its int]e/ 9 ! dome/ic p>tn]%ip1 or 7ii7 ! managem5t & control ( ! exp&$ affiliat$ gr\p :i* includes ! corporation occurs1 directly or indirectly1 prim>ily )9 ! ,unit$ ,/ates1 & su* exp&$ affiliat$ gr\p has significant dome/ic bus9ess activities4 7#c7 ,exception = corporations ) sub/antial bus9ess activities 9 =eign c\ntry ( organization ,su* t]m %all n include a =eign corporation describ$ 9 p>agraph 7#b7 if aft] ! acquisition ! exp&$ affiliat$ gr\p :i* includes ! corporation has sub/antial bus9ess activities 9 ! =eign c\ntry 9 :i* or "u ! law ( :i* ! corporation is creat$ or organiz$ :5 comp>$ to ! total bus9ess activities ( su* exp&$ affiliat$ gr\p4 ,= purposes ( ! prec$+ s5t5ce1 ! t]m sub/antial bus9ess activities %all h ! mean+ giv5 su* t]m "u regulations 9 effect on ,janu>y #ah1 #bjag1 except t ! ,secret>y may issue regulations increas+ ! ?re%old p]c5t 9 any ( ! te/s "u su* regulations = det]m9+ if bus9ess activities con/itute sub/antial bus9ess activities = purposes ( ?is p>agraph4 7#d7 ,managem5t & control ,= purposes ( p>agraph 7#b77;,b77ii7-- 7,a7 ,9 g5]al ,! ,secret>y %all prescribe regulations = purposes ( det]m9+ cases 9 :i* ! managem5t & control ( an exp&$ affiliat$ gr\p is to be treat$ z occurr+1 directly or indirectly1 prim>ily )9 ! ,unit$ ,/ates4 ,! regulations prescrib$ "u ! prec$+ s5t5ce %all apply to p]iods aft] ,m>* #d1 #bjjc4 7,b7 ,executive (fic]s & s5ior managem5t ,su* regulations %all provide t ! managem5t & control ( an exp&$ affiliat$ gr\p %all be treat$ z occurr+1 directly or indirectly1 prim>ily )9 ! ,unit$ ,/ates if sub/antially all ( ! executive (fic]s & s5ior managem5t ( ! exp&$ affiliat$ gr\p :o ex]cise day-to-day responsibility = mak+ decisions involv+ /rategic1 f9ancial1 & op]ational policies ( ! exp&$ affiliat$ gr\p are bas$ or prim>ily locat$ )9 ! ,unit$ ,/ates4 ,individuals :o 9 fact ex]cise su* day-to-day responsibilities %all be treat$ z executive (fic]s & s5ior managem5t reg>dless ( _! title4 7#e7 ,significant dome/ic bus9ess activities ,= purposes ( p>agraph 7#b77;,b77ii71 an exp&$ affiliat$ gr\p has significant dome/ic bus9ess activities if at lea/ #be p]c5t (-- 7,a7 ! employees ( ! gr\p are bas$ 9 ! ,unit$ ,/ates1 7,b7 ! employee comp5sation incurr$ by ! gr\p is incurr$ ) respect to employees bas$ 9 ! ,unit$ ,/ates1 7,c7 ! assets ( ! gr\p are locat$ 9 ! ,unit$ ,/ates1 or 7,d7 ! income ( ! gr\p is d]iv$ 9 ! ,unit$ ,/ates1 det]m9$ 9 ! same mann] z su* det]m9ations are made = purposes ( det]m9+ sub/antial bus9ess activities "u regulations ref]r$ to 9 p>agraph 7#c7 z 9 effect on ,janu>y #ah1 #bjag1 b appli$ by treat+ all ref]5ces 9 su* regulations to =eign c\ntry & relevant =eign c\ntry z ref]5ces to ! ,unit$ ,/ates4 ,! ,secret>y may issue regulations decreas+ ! ?re%old p]c5t 9 any ( ! te/s "u su* regulations = det]m9+ if bus9ess activities con/itute significant dome/ic bus9ess activities = purposes ( ?is p>agraph4 7#f7 ,def9itions & o!r rules 7,a7 ,exp&$ affiliat$ gr\p ,! t]m exp&$ affiliat$ gr\p has ! mean+ give su* t]m "u section #ghgd7;c77#a74 7,b7 ,o!r rules ,rules simil> to ! rules ( p>agraphs 7#b71 7#c71 7#e71 & 7#f7 ( section #ghgd7;c7 %all apply = purposes ( ?is subsection4 4