,,ii  #aag? ,,congress  #a/ ,session    
,s4 #bfhj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,augu/ #i1 #bjba,ms4   
,w>r5 7= h]self1 ,mr4 ,k+1 ,mr4 ,m]kley1
 ,mr4 ,m>key1 & ,mr4 ,:iteh\se7         
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to impose a tax on
 real pr(its ( c]ta9 corporations4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,real ,corporate ,pr(its ,tax ,act (    
#bjba4  #b4 ,imposition ( additional tax
 on real corporate pr(its  7a7          
,imposition ( tax  7#a7 ,9 g5]al        
,subtitle ,a ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+ new *apt]3  #d;,a ,tax on        
corporate book income  ,sec4 #adgf4 ,tax
 on book income4 ,sec4 #adgg4 ,cr$it =  
income taxes paid4  #adgf4 ,tax on book 
income  7a7 ,9 g5]al ,9 addition to any 
o!r tax1 9 ! case ( a corporation1 !re  
is impos$ a tax = ea* taxable ye> on s  
mu* ( ! adju/$ net book income ( !      

corporation z exce$s #ajj1jjj1jjj4  7b7 
,am\nt ( tax ,! am\nt ( tax impos$ "u   
subsection 7a7 %all be #g p]c5t4  7c7   
,adju/$ net book income ,= purposes (   
?is section-- 7#a7 ,9 g5]al ,! t]m      
adju/$ net book income means ! net      
income or loss ( ! taxpay] set =? on !  
taxpay]'s applicable f9ancial /atem5t z 
requir$ to be report$ 7or z w\ld h be5  
prop]ly report$ if ! taxpay] 7 s        
requir$7 on ! taxpay]'s f9ancial /atem5t
 net income or loss reconciliation = !  
fiscal ye> end+ ) or )9 su* taxable ye>1
 det]m9$ )\t reg>d to ! tax impos$ by   
?is section & adju/$ z provid$ 9 ?is    
subsection4  7#b7 ,gr\p ( entities ,=   
purposes ( ?is subsection-- 7,a7 if !   
f9ancial results ( a taxpay] are report$
 on ! applicable f9ancial /atem5t = a   
gr\p ( entities1 su* /atem5t %all be    
treat$ z ! applicable f9ancial /atem5t (
 ! taxpay]1 &  7,b7 if ! taxpay] files a
 consolidat$ return = any taxable ye>1  
adju/$ net book income = su* taxable ye>
 %all take into acc\nt items on !       

taxpay]'s applicable f9ancial /atem5t   
:i* are prop]ly allocable to memb]s (   
su* gr\p includ$ on su* return4  7#c7   
,applicable f9ancial /atem5t ,= purposes
 ( ?is subsection1 ! t]m applicable     
f9ancial /atem5t has ! mean+ giv5 su*   
t]m "u section #dea7;b77#c74  7d7       
,exception ,subsection 7a7 %all n apply 
to a corporation subject to ! tax impos$
 "u sub*apt] ,m 7relat+ to regulat$     
inve/m5t companies & real e/ate inve/m5t
 tru/s74  7e7 ,application to =eign     
corporations ,9 ! case ( a =eign        
corporation1 ! tax impos$ by subsection 
7a7 %all apply only to ^? items on !    
taxpay]'s applicable f9ancial /atem5t z 
are prop]ly allocable to ! income ( !   
taxpay] :i* is effectively connect$ ) ! 
conduct ( a trade or bus9ess )9 ! ,unit$
 ,/ates 7z det]m9$ "u rules simil> to ! 
rules 9 section #hhb74  7f7 ,regulations
 ,! ,secret>y %all prescribe su*        
regulations & guidance z necess>y to    
c>ry out ! purposes ( ?is section1      
includ+ regulations & guidance relat$ to

 ! application ( ?is section to         
consolidat$ f9ancial /atem5ts4  #adgg4  
,cr$it = income taxes paid  7a7 ,9 g5]al
 ,9 ! case ( a taxpay] o!r ?an an ,s    
corporation1 !re %all be all[$ a cr$it  
aga9/ ! tax impos$ by section #adgf =   
any taxable ye> an am\nt equal to #cc   
p]c5t ( s mu* ( ! taxpay]'s net regul>  
tax liability = ! taxable ye> z exce$s !
 product (-- 7#a7 ! highe/ rate ( tax   
specifi$ 9 section #aa1 &  7#b7 ! doll> 
am\nt describ$ 9 section #adgf7;a74  7b7
 ,net regul> tax liability ,= purposes (
 ?is section1 ! t]m net regul> tax      
liability means ! regul> tax liability  
impos$ "u *apt] #a r$uc$ by ! sum ( !   
cr$its all[able "u subp>ts ,a1 ,b & ,d (
 "p ,,iv ( sub*apt] ,a ( *apt] #a4  4   
7#b7 ,cl]ical am5dm5t ,! table ( *apt] =
 ! ,int]nal ,rev5ue ,code ( #aihf is    
am5d$ to read z foll[s3  ,*apt]         
#d;,a--,tax on corporate book income  4 
7b7 ,d5ial ( income tax d$uction        
,section #bge7;a77#a7 ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$ by /rik+ 

& at ! end ( p>agraph 7#b71 by /rik+ !  
p]iod at ! end ( p>agraph 7#c7 & ins]t+ 
2 &1 & by add+ at ! end ! foll[+ new    
p>agraph3  7#d7 ! tax impos$ by *apt]   
#d;,a4  4  7c7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4