Patriot Corporations of America Act of 2013

Summary: Patriot Corporations of America Act of 2013 - Grants after 2013 a preference to Patriot corporations in the evaluation of bids or proposals for federal contracts. Defines &quot;Patriot corporation&quot; as a corporation which: (1) produces at least 90% of its goods and services in the United States; (2) does not pay its its management-level employees at a rate more than 10,000% of the compensation of its lowest paid employee; (3) conducts at least 50% of its research and development in the United States; (4) contributes at least 5% of its payroll to a portable pension fund for its employees; (5) pays at least 70% of its employees' health insurance costs; (6) maintains a policy of neutrality in employee organizing drives; (7) provides full differential salary and insurance benefits for all National Guard and Reserve employees who are called to active duty; and (8) has not violated federal regulations, including regulations relating to the environment, workplace safety, labor relations, and consumer protections. Amends the Internal Revenue Code to: (1) reduce the income tax rate for Patriot corporations, and (2) reclassify foreign corporations created or organized to avoid federal taxation as domestic corporations for income tax purposes. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Patriot Corporations of America Act 
of 2013''.

SEC. 2. FEDERAL CONTRACTING PREFERENCE FOR PATRIOT CORPORATIONS.

    After December 31, 2013, in the evaluation of bids or proposals for 
a contract for the procurement of goods or services, the Federal 
Government shall provide a preference to any entity that is a Patriot 
corporation (as defined in section 11(e) of the Internal Revenue Code 
of 1986, as added by section 3 of this Act), unless the award of the 
contract to such entity would jeopardize the national security 
interests of the United States.

SEC. 3. REDUCTION IN RATE OF INCOME TAX FOR PATRIOT CORPORATIONS.

    (a) In General.--Section 11 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(e) Patriot Corporations.--
            ``(1) Rate reduction for patriot corporations.--In the case 
        of a Patriot corporation, the amount of the tax imposed under 
        subsection (a) (determined without regard to this paragraph) 
        shall be reduced (but not below zero) by an amount equal to 5 
        percent of the taxable income of such corporation.
            ``(2) Patriot corporation defined.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `Patriot corporation' 
                means, with respect to any taxable year, any 
                corporation which is certified by the Secretary as 
                meeting the requirements of subparagraph (B) for such 
                taxable and the preceding taxable year.
                    ``(B) Requirements.--A corporation meets the 
                requirements of this subparagraph, with respect to any 
                taxable year, if such corporation--
                            ``(i) produces in the United States at 
                        least 90 percent of the goods and services sold 
                        by such corporation during such taxable year,
                            ``(ii) does not provide compensation to any 
                        management personnel of such corporation at a 
                        level of compensation which exceeds 10,000 
                        percent of the level of compensation of the 
                        full-time employee of such corporation with the 
                        lowest level of compensation during such 
                        taxable year,
                            ``(iii) conducts at least 50 percent of the 
                        research and development conducted by such 
                        corporation during such taxable year 
                        (determined on the basis of cost) in the United 
                        States,
                            ``(iv) has contributed at least 5 percent 
                        of wages paid by the corporation during the 
                        taxable year to a portable pension fund for the 
                        benefit of employees of the corporation,
                            ``(v) has paid at least 70 percent of the 
                        cost of a standardized health insurance plan 
                        for the benefit of employees of the corporation 
                        during such taxable year,
                            ``(vi) has maintained at all times during 
                        such taxable year neutrality in employee 
                        organizing drives and has in effect a policy to 
                        that effect,
                            ``(vii) provides full differential salary 
                        and insurance benefits for all National Guard 
                        and Reserve employees who are called to active 
                        duty,
                            ``(viii) has not been (at any time during 
                        such taxable year) in violation of appropriate 
                        Federal regulations including those related to 
                        the environment, workplace safety, labor 
                        relations, and consumer protections, as 
                        determined by the Secretary, and
                            ``(ix) has not been in violation of any 
                        other regulations specified by the Secretary.
                    ``(C) Certification process.--Not later than 90 
                days after the date of the enactment of this 
                subsection, the Secretary shall establish an 
                application and certification process to annually 
                certify corporations as Patriot corporations. Such 
                certifications shall be made at such time and on the 
                basis of such materials as the Secretary determines 
                appropriate.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.
    (c) Certification Allowed for Year Preceding Effective Date of Rate 
Reduction.--For purposes of section 11(e) of the Internal Revenue Code 
of 1986, as added by this section, the Secretary may certify a 
corporation as a Patriot corporation for the last taxable year of the 
corporation beginning on or before December 31, 2013, if the 
corporation meets the requirements of paragraph (2)(B) of such section 
for such taxable year.

SEC. 4. TAX AVOIDANCE FOREIGN CORPORATIONS SUBJECT TO UNITED STATES 
              INCOME TAX.

    (a) In General.--Paragraph (4) of section 7701(a) of the Internal 
Revenue Code of 1986 (defining domestic) is amended to read as follows:
            ``(4) Domestic.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `domestic' when applied to a 
                corporation or partnership means created or organized 
                in the United States or under the law of the United 
                States or of any State unless, in the case of a 
                partnership, the Secretary provides otherwise by 
                regulations.
                    ``(B) Tax avoidance foreign corporations treated as 
                domestic.--Any corporation which would (but for this 
                subparagraph) be treated as a foreign corporation shall 
                be treated as a domestic corporation if the Secretary 
                determines that such corporation was created or 
                organized as a foreign corporation (instead of as a 
                domestic corporation) principally for the purpose of 
                avoiding being treated as a domestic corporation under 
                this title.''.
    (b) Effective Dates.--The amendment made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.