To amend the Internal Revenue Code of 1986 to extend the deduction for dividends received from a controlled foreign corporation by any corporation that has increased wages or placed property in service for the year.

Summary: Returning Investment to America Act of 2011 - Amends the Internal Revenue Code to allow an extension of the election allowed to domestic corporations to deduct dividends received from controlled foreign corporations (election may be made for any taxable year beginning before December 31, 2012).  Limits the amount of such deduction in any taxable year to the amount by which the domestic corporation increases its payroll and by the amount of its investment in depreciable business assets.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Returning Investment to America Act 
of 2011''.

SEC. 2. EXTENSION OF DIVIDENDS RECEIVED DEDUCTION FOR DIVIDENDS 
              RECEIVED FROM CONTROLLED FOREIGN CORPORATIONS BY 
              CORPORATIONS INCREASING PAYROLL.

    (a) Extension.--Subsection (f) of section 965 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(f) Election.--
            ``(1) In general.--An election under this section may be 
        made for any taxable year beginning before December 31, 2012, 
        and shall be made at such time and in such manner as the 
        Secretary may prescribe, and, once made, may be revoked only 
        with the consent of the Secretary.
            ``(2) Controlled groups.--If an election under this section 
        is made by a member of a controlled group of corporations 
        (within the meaning of section 1563(a), except that `more than 
        50 percent' shall be substituted for `at least 80 percent' each 
        place it appears therein) then, except as otherwise provided by 
        the Secretary, such election shall apply to all members of such 
        controlled group.''.
    (b) Deduction Limited by Payroll Increase and Property Placed in 
Service.--Subsection (b) of section 965 of such Code is amended to read 
as follows:
    ``(b) Deduction Limited by Payroll Increase.--
            ``(1) In general.--The amount of dividends taken into 
        account under subsection (a) for any taxable year shall not 
        exceed an amount equal to the reinvestment amount of such 
        employer (if any) for such taxable year.
            ``(2) Reinvestment amount.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `reinvestment amount' 
                means the sum of--
                            ``(i) the employer's payroll increase for 
                        the calendar year ending during the taxable 
                        year, plus
                            ``(ii) the basis of qualified property 
                        placed in service by the taxpayer during the 
                        taxable year.
                    ``(B) Payroll increase.--
                            ``(i) In general.--The term `payroll 
                        increase' means, with respect to an employer 
                        for a calendar year, the excess (if any) of--
                                    ``(I) the aggregate amount of wages 
                                paid by such employer to all employees 
                                for such calendar year, over
                                    ``(II) aggregate amount of 
                                inflation adjusted wages paid by such 
                                employer to all employees for the 
                                preceding calendar year.
                            ``(ii) Wages.--The term `wages' has the 
                        meaning given such term by section 3121(a) for 
                        purposes of section 3111(a).
                            ``(iii) Inflation adjusted wages.--The term 
                        `inflation adjusted wages' means an amount 
                        equal to--
                                    ``(I) wages with respect to an 
                                employee, multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year for which 
                                the reduction in deposits under this 
                                section is being determined occurs, 
                                determined by substituting `calendar 
                                year 2010' for `calendar year 1992' in 
                                subparagraph (B) thereof.
                    ``(C) Qualified property.--The term `qualified 
                property' means any tangible personal property with 
                respect to which depreciation (or amortization in lieu 
                of depreciation) is allowable.
            ``(3) Bonus reinvestment amount for 2012.--In the case of 
        any taxable year beginning in 2012, the taxpayer may elect to 
        increase the reinvestment amount for such taxable year by an 
        amount equal to--
                    ``(A) the employer's payroll increase for the 
                calendar year ending during the preceding taxable year, 
                plus
                    ``(B) the basis of qualified property placed in 
                service by the taxpayer during the preceding taxable 
                year after the mid-point of such preceding taxable 
                year.
            ``(4) Adjustments for certain acquisitions, etc.--Under 
        regulations prescribed by the Secretary--
                    ``(A) Acquisitions.--If an employer acquires the 
                major portion of a trade or business of another person 
                (hereafter in this paragraph referred to as the 
                `predecessor') or the major portion of a separate unit 
                of a trade or business of a predecessor, then, for 
                purposes of applying this section for any calendar year 
                ending after such acquisition, the amount of wages or 
                compensation deemed paid by the employer during periods 
                before such acquisition shall be increased by so much 
                of such wages or compensation paid by the predecessor 
                with respect to the acquired trade or business as is 
                attributable to the portion of such trade or business 
                acquired by the employer.
                    ``(B) Dispositions.--If--
                            ``(i) an employer disposes of the major 
                        portion of any trade or business of the 
                        employer or the major portion of a separate 
                        unit of a trade or business of the employer in 
                        a transaction to which subparagraph (A) 
                        applies, and
                            ``(ii) the employer furnishes the acquiring 
                        person such information as is necessary for the 
                        application of subparagraph (A),
                then, for purposes of applying this section for any 
                calendar year ending after such disposition, the amount 
                of wages or compensation deemed paid by the employer 
                during periods before such disposition shall be reduced 
                by so much of such wages as is attributable to such 
                trade or business or separate unit.''.
    (c) Conforming Amendments.--
            (1) Subsection (c) of section 965 of such Code is amended 
        by striking paragraphs (1) and (2) and by redesignating 
        paragraphs (3), (4), and (5) as paragraphs (1), (2), and (3), 
        respectively.
            (2) Subparagraph (B) of section 965(c)(5) of such Code is 
        amended--
                    (A) by striking ``shall be limited to one 
                $5,000,000,000 amount in subsection (b)(1)(A)'' and 
                inserting ``shall be treated as one employer for 
                purposes of determining the amount of any limitation 
                under subsection (b)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.