,,ii #aahth ,,congress #ast ,session ,s4 #beah ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bf1 #bjbc ,mr4 ,wyden introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to make investment income of certain foreign governments subject to tax4 #a4 ,short title ,this ,act may be cited as the ,ending ,tax ,breaks for ,massive ,sovereign ,wealth ,funds ,act4 #b4 ,investment income of certain foreign governments subject to tax 7a7 ,in general ,section #hib7;a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#d7 ,investment income of non-exempt foreign governments 7,a7 ,in general ,paragraph 7#a77;,a77i7 shall not apply to income from investments of a non-exempt foreign government4 7,b7 ,non-exempt foreign government ,for purposes of this paragraph1 the term non-exempt foreign government means any foreign government which-- 7i7 holds1 directly or indirectly1 more than #ajj1jjj1jjj1jjj in assets for investment or for the production of income1 and 7ii7 either-- 7,i7 does not have a free trade agreement in effect with the ,united ,states or an income tax treaty or convention in effect with the ,united ,states1 or 7,,ii7 is a foreign government of a covered nation 7as defined in section #dhgb7;d77#b7 of title #aj1 ,united ,states ,code74 4 7b7 ,regulations ,section #hib7;c7 of the ,internal ,revenue ,code of #aihf is amended by inserting before the period at the end the following 1 including-- 7#a7 regulations to prevent the avoidance of the purposes of subsection 7a77#d71 and 7#b7 regulations relating to the types of assets taken into account under subsection 7a77#d77;,b77i74 4 7c7 ,publication of list of non-,exempt foreign governments 7#a7 ,in general ,not later than ,december #ca1 #bjbd1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall publish a list of foreign governments which are non-exempt foreign governments 7as defined in section #hib7;a77#d7 of the ,internal ,revenue ,code of #aihf1 as added by this section74 7#b7 ,updating ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall regularly update the list published under paragraph 7#a74 7d7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall apply to income received after ,december #ca1 #bjbc4 7#b7 ,delay in application for income on qualified investments ,in the case of any qualified investment1 the amendments made by this section shall apply to income received from such investment after ,december #ca1 #bjbe4 7#c7 ,qualified investment ,for purposes of paragraph 7#b7-- 7,a7 ,in general ,the term qualified investment means1 with respect to a non-exempt foreign government1 any investment made by such government on or before the date of the enactment of this ,act the income from which would 7without regard to the amendments made by this ,act7 be excluded from the gross income of such government under section #hib of the ,internal ,revenue ,code of #aihf4 7,b7 ,certain later investments treated as qualified investments ,in the case of an investment made by a non-exempt foreign government which would be treated as a qualified investment of such government but for the fact it was made after the date of the enactment of this ,act and before ,january #a1 #bjbf1 such investment shall be treated as a qualified investment if it-- 7i7 was made pursuant to a binding contract which-- 7,i7 was in effect on such date of enactment and at all times thereafter before such investment1 7,,ii7 required such investment to be made on a fixed date and in a fixed amount1 and 7,,iii7 did not allow any person to delay1 deny1 or excuse such investment1 or 7ii7 is a qualified public investment4 7,c7 ,termination of qualified investment treatment 7i7 ,in general ,if-- 7,i7 a domestic corporation of which a non-exempt foreign government is a direct shareholder and which has received #a or more qualified investments1 or 7,,ii7 a domestic or foreign partnership 7or similar flow-through entity7 in which a non-exempt foreign government is a direct partner and which has made #a or more qualified investments on behalf of a non-exempt foreign government1 receives an additional investment 7which is not a qualified investment7 from any non-exempt foreign government1 then1 notwithstanding paragraph 7#b71 the amendments made by this section shall apply to income received from all the qualified investments received by the non-exempt foreign government from such domestic corporation or through such partnership 7or similar flow-through entity7 after the date on which such domestic corporation or partnership 7or similar flow-through entity7 receives such additional investment4 7ii7 ,determination of receipt ,for purposes of this subparagraph1 an entity described in subclause 7,i7 or 7,,ii7 of clause 7i7 shall be treated as having received an additional investment from a non-exempt foreign government if-- 7,i7 it receives such investment directly from such government1 or 7,,ii7 it receives such investment from a partnership 7or similar flow-through entity7 of which such government is a direct or indirect partner4 7iii7 ,certification ,for purposes of this subparagraph1 an entity shall be treated as having received additional investments described in clause 7i7 unless1 at the time of making payments of income on any qualified investment1 such entity certifies 7in such manner as the ,secretary of the ,treasury or his delegate may prescribe7 that no such additional investments have been received as of such time4 7,d7 ,qualified public investment ,for purposes of subparagraph 7,b77ii7-- 7i7 ,in general ,the term qualified public investment means any investment by a non-exempt foreign government in a domestic corporation or a domestic or foreign partnership which is regularly traded on an established securities market4 7ii7 ,exception ,such term shall not include-- 7,i7 any investment in a domestic corporation on or after the date on which such non-exempt foreign government holds 7directly or indirectly7 #aj percent or more 7by vote or value7 of the total outstanding shares of stock in such domestic corporation1 and 7,,ii7 any investment in a domestic or foreign partnership on or after the date on which such non-exempt foreign government holds 7directly or indirectly7 #aj percent or more of the capital or profits interests of such domestic partnership4 7,e7 ,other terms ,for purposes of this paragraph-- 7i7 ,non-exempt foreign government ,the term non-exempt foreign government has the meaning given such term under section #hib7;a77#d7 of the ,internal ,revenue ,code of #aihf 7as added by this section74 7ii7 ,investment ,the term investment means an investment described in section #hib7;a77#a77;,a77i7 of the ,internal ,revenue ,code of #aihf4