,,ii  #aai? ,,congress  #a/ ,session    
,s4 #bjba  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #aa1 #bjbe ,mr4  
,wyd5 7= himself1 ,mr4 ,w>n]1 ,mr4      
,w>nock1 & ,mr4 ,wel*7 introduc$ !      
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,f9ance  ,a ,,bill   
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to exclude r\nd-tripp$ income =   
purposes ( calculat+ global intangible  
l[-tax$ income1 & = o!r purposes4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,close ! ,r\nd-,tripp+ ,loophole ,act4  
#b4 ,modification to det]m9ation ( net  
deem$ intangible income return  7a7 ,9  
g5]al ,section #iea;,a7b77#b77;,a7 ( !  
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7#a7 by /rik+ #aj p]c5t ( !    
aggregate ( & ins]t+ #aj p]c5t ( !      
excess 7if any7 (--  7i7 ! aggregate (  
1 &  7#b7 by add+ at ! end ! foll[+ new 
clause3  7ii7 an am\nt equal to !       
product ( ! am\nt det]m9$ "u clause 7i7 
& ! r\nd-tripp+ ratio1 ov]  4  7b7      
,r\nd-,tripp+ ratio ,section #iea;,a7b7 

( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by add+ at ! end ! foll[+ new     
p>agraph3  7#c7 ,r\nd-tripp+ ratio ,=   
purposes ( ?is subsection-- 7,a7 ,9     
g5]al ,! r\nd-tripp+ ratio means1 )     
respect to any ,unit$ ,/ates %>ehold] = 
any taxable ye>1 ! p]c5tage 7n great]   
?an #ajj p]c5t7 :i* is equal to ! ratio 
:i*--  7i7 ! %>ehold]'s r\nd-tripp$ net 
,,cfc te/$ income = su* taxable ye>     
det]m9$ "u subp>agraph 7,b71 be>s to    
7ii7 ! %>ehold]'s net ,,cfc te/$ income 
= su* taxable ye>1 det]m9$ )\t reg>d to 
?is p>agraph4  7,b7 ,%>ehold]'s         
r\nd-tripp$ net ,,cfc te/$ income ,=    
purposes ( subp>agraph 7,a77i71 a ,unit$
 ,/ates %>ehold]'s r\nd-tripp$ net ,,cfc
 te/$ income = any taxable ye> is ! net 
,,cfc te/$ income ( su* %>ehold] :i*    
w\ld be det]m9$ "u subsection 7c7 = su* 
taxable ye> if-- 7i7 ! only income tak5 
into acc\nt "u clause 7i7 ( subsection  
7c77#b77;,a7 9 det]m9+ ! te/$ income or 
te/$ loss ( ea* controll$ =eign         
corporation tak5 into acc\nt by su*     

%>ehold] "u subsection 7c77#a7 = su*    
taxable ye> 7 income describ$ 9 su*     
clause :i* is d]iv$ 9 connection )--    
7,i7 prop]ty-- 7aa7 :i* is sold by !    
taxpay] to any p]son :o is a ,unit$     
,/ates p]son1 or  7bb7 :i* ! taxpay] _c 
e/abli% to ! satisfaction ( ! ,secret>y 
is = =eign use1 or  7,,ii7 s]vices      
provid$ by ! taxpay] :i* ! taxpay] _c   
e/abli% to ! satisfaction ( ! ,secret>y 
are provid$ to any p]son1 or ) respect  
to prop]ty1 n locat$ )9 ! ,unit$ ,/ates1
 &  7ii7 ! only d$uctions tak5 into     
acc\nt "u clause 7ii7 ( subsection      
7c77#b77;,a7 9 det]m9+ su* te/$ income  
or te/$ loss 7 d$uctions prop]ly        
allocable to income describ$ 9 clause   
7i74  7,c7 ,=eign use ,= purposes ( ?is 
subsection1 ! det]m9ation ( :e!r prop]ty
 is = a =eign use %all be made 9 ! same 
mann] z "u section #bej7;b74  7,d7      
,exception = c]ta9 small taxpay]s  7i7  
,9 g5]al ,9 ! case ( any ,unit$ ,/ates  
%>ehold] describ$ 9 clause 7ii71 !      
r\nd-tripp+ ratio %all be #j p]c5t4     

7ii7 ,taxpay] describ$  7,i7 ,9 g5]al ,a
 ,unit$ ,/ates %>ehold] is describ$ 9   
?is clause if ! av]age annual gross     
receipts ( su* ,unit$ ,/ates %>ehold] = 
! #c-taxable ye> p]iod end+ ) ! taxable 
ye> :i* prec$es su* taxable ye> does n  
exce$ #ajj1jjj1jjj4  7,,ii7 ,application
 ( c]ta9 rules ,rules simil> to ! rules 
( p>agraphs 7#b77;,b7 & 7#c7 ( section  
#ei;,a7e7 %all apply = purposes ( ?is   
clause4  4  7c7 ,effective date ,!      
am5dm5ts made by ?is section %all apply 
taxable ye>s ( =eign corporations beg9n+
 aft] ! date ( ! enactm5t ( ?is ,act1 & 
to taxable ye>s ( ,unit$ ,/ates         
%>ehold]s 9 :i* or ) :i* su* taxable    
ye>s ( =eign corporations end4  #c4     
,limitation on d$uction = global        
intangible l[-tax$ income  7a7 ,9 g5]al 
,section #bej7;a77#a77;,b7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  7,b7 #ej p]c5t ( ! excess 7if 
any7 (--  7i7 ! sum (-- 7,i7 ! global   
intangible l[-tax$ income am\nt 7if any7
 :i* is includ$ 9 ! gross income ( su*  

dome/ic corporation "u section #iea;,a =
 su* taxable ye>1 &  7,,ii7 ! am\nt     
treat$ z a divid5d receiv$ by su*       
corporation "u section #gh :i* is       
attributable to ! am\nt describ$ 9      
subclause 7,i71 ov]  7ii7 an am\nt equal
 to ! product ( ! am\nt det]m9$ "u      
clause 7i7 & ! r\nd-tripp+ ratio 7z     
det]m9$ "u section #iea;,a7b77#c77 ( su*
 dome/ic corporation = su* taxable ye>4 
4  7b7 ,effective date ,! am5dm5t made  
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ! date ( ! enactm5t (  
?is ,act4