,i  #aah? ,,congress  #b;d ,session  ,h4
 ,r4 #hbgd  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,may #g1 #bjbd ,mr4   
,la,hood 7= himself1 ,mr4 ,f]guson1 ,mr4
 ,smi? ( ,nebraska1 ,mrs4 ,mill] ( ,we/ 
,virg9ia1 ,ms4 ,t5ney1 & ,mr4 ,fe5/ra7  
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to enc\rage ! transf] (   
intangible prop]ty f controll$ =eign    
corporations to ,unit$ ,/ates %>ehold]s4
  #a4 ,%ort title ,?is ,act may be cit$ 
z ! ,br++ ,back ,am]ican ,jobs ,?r\gh   
,intellectual ,prop]ty ,repatriation    
,act4  #b4 ,special rules = transf]s (  
intangible prop]ty f controll$ =eign    
corporations to ,unit$ ,/ates %>ehold]s 
7a7 ,9 g5]al ,subp>t ,f ( "p ,,iii (    
sub*apt] ,n ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new section3  #iff4   
,transf]s ( intangible prop]ty to ,unit$
 ,/ates %>ehold]s  7a7 ,9 g5]al ,if a   
controll$ =eign corporation holds       

intangible prop]ty on ! date ( !        
enactm5t ( ?is section & !reaft]        
di/ributes su* prop]ty to a dome/ic     
corporation :i* is a ,unit$ ,/ates      
%>ehold] ) respect to su* controll$     
=eign corporation-- 7#a7 = purposes ( "p
 ,i ( sub*apt] ,c & any o!r provision ( 
?is title specifi$ by ! ,secret>y1 !    
fair m>ket value ( su* prop]ty on ! date
 ( su* di/ribution %all be treat$ z n   
exce$+ ! adju/$ basis ( su* prop]ty     
imm$iately be=e su* di/ribution1 &  7#b7
 if any portion ( su* di/ribution is n a
 divid5d-- 7,a7 no ga9 %all be recogniz$
 by su* ,unit$ ,/ates %>ehold] ) respect
 to su* di/ribution1 &  7,b7 ! adju/$   
basis ( su* prop]ty 9 ! h&s ( su* ,unit$
 ,/ates %>ehold] imm$iately aft] su*    
di/ribution %all be ! adju/$ basis ( su*
 prop]ty 9 ! h&s ( su* controll$ =eign  
corporation imm$iately be=e su*         
di/ribution r$uc$ by ! am\nt 7if any7 ( 
ga9 n recogniz$ by reason ( subp>agraph 
7,a7 7det]m9$ aft] ! application (      
p>agraph 7#a774  7b7 ,intangible prop]ty

 ,= purposes ( ?is section1 ! t]m       
intangible prop]ty means any--  7#a7    
pat5t1 copyright1 lic5se1 inv5tion1     
=mula1 process1 design1 patt]n1 "k-h[1  
or =mat1  7#b7 me?od1 program1 sy/em1   
proc$ure1 campaign1 survey1 /udy1 =eca/1
 e/imate1 or te*nical data1  7#c7       
comput] s(tw>e 7z def9$ 9 section       
#aig7;e77#c77;,b771 or  7#d7 any simil> 
item1 :i* has sub/antial value indep5d5t
 ( ! s]vices ( any individual4  7c7     
,application to transf]s ( intangible   
prop]ty to a ,unit$ ,/ates %>ehold]     
?r\gh a *a9 ( controll$ =eign           
corporations ,9 ! case ( intangible     
prop]ty :i* is held by a controll$ =eign
 corporation on ! date ( ! enactm5t (   
?is section & is !reaft] di/ribut$ to   
ano!r controll$ =eign corporation1 !    
rules ( subsection 7a7 %all apply )     
respect to su* di/ribution 7& any       
subsequ5t di/ribution ( su* prop]ty by a
 controll$ =eign corporation to ano!r   
controll$ =eign corporation or ,unit$   
,/ates %>ehold]7 if1 n lat] ?an #ahj    

days aft] ! date ( su* fir/ di/ribution1
 su* prop]ty is di/ribut$ to a dome/ic  
corporation :i* is a ,unit$ ,/ates      
%>ehold] ) respect to ea* su* controll$ 
=eign corporation4  4  7b7 ,con=m+      
am5dm5ts  7#a7 ,section                 
#aig7;f77#b77;,b77i7 ( su* ,code is     
am5d$ by ins]t+ #iff7;a71 aft] #gca14   
7#b7 ,! table ( sections = subp>t ,f (  
"p ,,iii ( sub*apt] ,n ( *apt] #a ( su* 
,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #iff4 ,transf]s (     
intangible prop]ty to ,unit$ ,/ates     
%>ehold]s4  4  7c7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to di/ributions made 9 taxable ye>s (   
=eign corporations beg9n+ aft] ,decemb] 
#ca1 #bjbc1 & to taxable ye>s ( ,unit$  
,/ates %>ehold]s 9 :i* or ) :i* su*     
taxable ye>s ( =eign corporations end4