Putting America First Corporate Tax Act

Summary: Putting America First Corporate Tax Act - Amends the Internal Revenue Code to include in subpart F income (income of a controlled foreign corporation earned outside the United States that is not tax deferred): (1) a shareholder's pro rata share of the average of certain U.S. and foreign property held by a controlled foreign corporation as of the close of each quarter of a taxable year, and (2) the income of a controlled foreign corporation derived from any foreign country. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Putting America First Corporate Tax 
Act''.

SEC. 2. INCLUSION IN SUBPART F INCOME OF INVESTMENTS BY CONTROLLED 
              FOREIGN CORPORATIONS WITH RESPECT TO MEMBERS OF FOREIGN 
              GROUP WHICH INCLUDES UNITED STATES SHAREHOLDER.

    (a) In General.--Section 956(a)(1)(A) of the Internal Revenue Code 
of 1986 is amended to read as follows:
                    ``(A) such shareholder's pro rata share of the 
                average of--
                            ``(i) the amounts of United States 
                        property, and
                            ``(ii) in the case of a controlled foreign 
                        corporation which is a member of an expanded 
                        affiliated group the common parent of which is 
                        not a United States person, the amount of 
                        foreign group property,
                held (directly or indirectly) by the controlled foreign 
                corporation as of the close of each quarter of such 
                taxable year, over''.
    (b) Foreign Group Property.--Section 956 of such Code is amended by 
redesignating subsections (d) and (e) as subsections (e) and (f), 
respectively, and by inserting after subsection (c) the following new 
subsection:
    ``(d) Foreign Group Property; Expanded Affiliated Group.--For 
purposes of this section--
            ``(1) Foreign group property.--
                    ``(A) In general.--The term `foreign group 
                property' means any stock or obligation of any foreign 
                person which is not a controlled foreign corporation.
                    ``(B) Exceptions.--Such term shall not include--
                            ``(i) the stock or obligation of any entity 
                        if less than 25 percent of the total combined 
                        voting power of such entity, immediately after 
                        the acquisition of any stock in such entity by 
                        the controlled foreign corporation, is owned 
                        (directly or indirectly) by the common parent 
                        referred to in subsection (a)(1)(A)(ii), and
                            ``(ii) property described in subparagraph 
                        (C), (I), (J), or (K) of subsection (c)(2), 
                        applied by substituting `foreign person' for 
                        `United States person' in such subparagraphs 
                        (C) and (J).
            ``(2) Expanded affiliated group.--The term `expanded 
        affiliated group' means an affiliated group as defined in 
        section 1504(a), determined--
                    ``(A) by substituting `more than 50 percent' for 
                `at least 80 percent' each place it appears, and
                    ``(B) without regard to paragraphs (2) and (3) of 
                section 1504(b).
        A partnership or any other entity (other than a corporation) 
        shall be treated as a member of an expanded affiliated group if 
        such entity controls (as determined under section 954(d)(3)), 
        or is controlled by (as so determined), members of such group 
        (including any entity treated as a member of such group by 
        reason of this sentence).
            ``(3) Application to non-corporate entities.--In the case 
        of any entity which is not a corporation--
                    ``(A) any reference in this subsection to stock 
                shall be treated as a reference to any equity or 
                profits interest in such entity, and
                    ``(B) except as otherwise provided by the 
                Secretary, paragraph (1)(B)(i) shall be applied by 
                substituting `25 percent (by value) of the beneficial 
                interests in such entity' for `25 percent of the total 
                combined voting power of such entity'.''.
    (c) Application of Rules for Pledges and Guarantees.--Section 
956(e) of such Code, as so redesignated, is amended to read as follows:
    ``(e) Pledges and Guarantees.--For purposes of subsection (a), a 
controlled foreign corporation shall, under regulations prescribed by 
the Secretary, be considered as holding--
            ``(1) an obligation of a United States person if such 
        controlled foreign corporation is a pledgor or guarantor of 
        such obligation, and
            ``(2) an obligation of a foreign person if such controlled 
        foreign corporation or, to the extent provided under such 
        regulations, any United States shareholder of such controlled 
        foreign corporation, is a pledgor or guarantor of such 
        obligation.''.
    (d) Application of Limitation on Amount of Foreign Taxes Deemed 
Paid With Respect to Section 956 Inclusions.--Notwithstanding section 
214(b) of Public Law 111-226, section 960(c) of the Internal Revenue 
Code of 1986 shall apply to acquisitions of foreign group property (as 
defined in 956(d) of such Code, as amended by this section) after 
December 31, 2010, in addition to acquisitions of United States 
property (as defined in section 956(c) of such Code) after such date.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years of controlled foreign corporations ending after 
the date of the enactment of this Act and to taxable years of United 
States shareholders in which or with which such taxable years of 
controlled foreign corporations end.

SEC. 3. TERMINATION OF DEFERRAL OF ACTIVE INCOME OF CONTROLLED FOREIGN 
              CORPORATIONS.

    (a) In General.--Section 952 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(d) Special Application of Subpart.--
            ``(1) In general.--For taxable years beginning after 
        December 31, 2014, notwithstanding any other provision of this 
        subpart, the term `subpart F income' means, in the case of any 
        controlled foreign corporation, the income of such corporation 
        derived from any foreign country.
            ``(2) Applicable rules.--Rules similar to the rules under 
        the last sentence of subsection (a) and subsection (d) shall 
        apply to this subsection.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2014.