I 

112TH CONGRESS 

1ST SESSION H. R. 3460 

To amend the Internal Revenue Code of 1986 to allow temporarily a reduced 

rate of tax with respect to repatriated foreign earnings. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 17, 2011 

Ms. BERKLEY (for herself, Mr. MORAN, and Mr. POLIS) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow temporarily a reduced rate of tax with respect to repatriated 

foreign earnings. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Jobs First 

5 Act of 2011’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

2 

•HR 3460 IH

1 SEC. 2. EXTENSION AND MODIFICATION OF DIVIDENDS RE2 CEIVED DEDUCTION FOR CERTAIN REPATRI3 ATED FOREIGN EARNINGS. 

4 (a) IN GENERAL.—Section 965 of such Code is 

5 amended by adding at the end the following new sub6 section: 

7 ‘‘(g) TEMPORARY EXTENSION AND MODIFICATION.— 

8 ‘‘(1) IN GENERAL.—In the case of an election 

9 under this subsection, subsection (f)(1) shall be ap10 plied by substituting ‘the date of the enactment of 

11 subsection (g)’ for ‘the date of the enactment of this 

12 section’. 

13 ‘‘(2) PERCENTAGE DEDUCTIBLE.— 

14 ‘‘(A) IN GENERAL.—In the case of an elec15 tion under this subsection, subsection (a)(1) 

16 shall be applied by substituting ‘the applicable 

17 percentage’ for ‘85 percent’. 

18 ‘‘(B) APPLICABLE PERCENTAGE.—For 

19 purposes of this section, the applicable percent20 age is 29 percent, increased by the number of 

21 percentage points determined with respect to 

22 the taxpayer under subparagraph (C). 

23 ‘‘(C) INCREASED DEDUCTION FOR PAY24 ROLL EXPANSION.— 

25 ‘‘(i) IN GENERAL.—For purposes of 

26 subparagraph (B), the number of percentmstockstill on DSK4VPTVN1PROD with BILLS

3 

•HR 3460 IH

1 age points determined with respect to a 

2 taxpayer under this subparagraph shall 

3 be— 

4 ‘‘(I) so much of the percentage 

5 increase, if any, in the taxpayer’s 

6 qualified payroll for all quarters end7 ing during the taxable year as com8 pared to the qualified payroll for the 

9 same quarters during the taxpayer’s 

10 taxable year ending during 2010 as 

11 does not exceed 14 percent, multiplied 

12 by 

13 ‘‘(II) 4. 

14 ‘‘(ii) QUALIFIED PAYROLL.—For pur15 poses of this subparagraph, the term 

16 ‘qualified payroll’ means the amount of all 

17 wages (within the meaning of section 

18 3121(a)) paid or incurred by the taxpayer 

19 to the employees of such taxpayer, except 

20 that, with respect to each such employee, 

21 such wages shall be taken into account 

22 only to the extent that such wages do not 

23 exceed the contribution and benefit base as 

24 determined under section 230 of the Social 

25 Security Act. 

mstockstill on DSK4VPTVN1PROD with BILLS

4 

•HR 3460 IH

1 ‘‘(iii) RAILWAY LABOR.—In the case 

2 of remuneration subject to the tax imposed 

3 by section 3221(a), clause (ii) shall be ap4 plied by substituting ‘all compensation 

5 (within the meaning of section 3231(e))’ 

6 for ‘all wages (within the meaning of sec7 tion 3121(a))’. 

8 ‘‘(iv) SPECIAL RULE FOR CONVERTED

9 EMPLOYEES.—For purposes of this sub10 paragraph— 

11 ‘‘(I) IN GENERAL.—The wages of 

12 any specified individual shall not be 

13 taken into account. 

14 ‘‘(II) SPECIFIED INDIVIDUAL.— 

15 Except as provided by the Secretary, 

16 the term ‘specified individual’ means 

17 any individual who, during the 2-year 

18 period ending on the date of the en19 actment of this subsection, performed 

20 services directly or indirectly for the 

21 taxpayer and was treated for purposes 

22 of employment taxes as not an em23 ployee with respect to the performance 

24 of such services. 

25 ‘‘(3) SPECIAL RULES.— 

mstockstill on DSK4VPTVN1PROD with BILLS

5 

•HR 3460 IH

1 ‘‘(A) RECAPTURE IN CASE OF PAYROLL

2 DECREASE DURING RECAPTURE PERIOD.—The 

3 Secretary shall, by regulations, provide for re4 capturing any portion of the benefit under any 

5 deduction allowable by this subsection, and at6 tributable to paragraph (2)(C), to the extent— 

7 ‘‘(i) the taxpayer’s qualified payroll 

8 for all quarters ending during the taxable 

9 year for which the such deduction was al10 lowed, exceeds 

11 ‘‘(ii) the taxpayer’s qualified payroll 

12 for all quarters ending during either of the 

13 2 taxable years following the taxable year 

14 with respect to which such deduction was 

15 allowed. 

16 ‘‘(B) CONTROLLED GROUPS.—All employ17 ers treated as a single employer under section 

18 (a) or (b) of section 52 shall be treated as a 

19 single employer for purposes of this sub20 section.’’. 

21 (b) CONFORMING AMENDMENT.— 

22 (1) Subsection (b) of section 965 of such Code 

23 is amended by striking paragraph (4). 

mstockstill on DSK4VPTVN1PROD with BILLS

6 

•HR 3460 IH

1 (2) Section 965 of such Code is amended by 

2 striking ‘‘June 30, 2003’’ each place it occurs and 

3 inserting ‘‘June 30, 2010’’. 

4 (3) Subparagraph (B) of section 965(b)(3) of 

5 such Code is amended by striking ‘‘October 3, 

6 2004’’ and inserting ‘‘October 1, 2011’’. 

7 (c) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to taxable years ending on or after 

9 the date of the enactment of this Act 

Æ 

mstockstill on DSK4VPTVN1PROD with BILLS