I 

112TH CONGRESS 

1ST SESSION H. R. 3448 

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. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 16, 2011 

Mr. RENACCI (for himself, Mr. CARNEY, and Mr. WELCH) 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 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. 

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 ‘‘Returning Investment 

5 to America Act of 2011’’. 


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1 SEC. 2. EXTENSION OF DIVIDENDS RECEIVED DEDUCTION 

2 FOR DIVIDENDS RECEIVED FROM CON3 TROLLED FOREIGN CORPORATIONS BY COR4 PORATIONS INCREASING PAYROLL. 

5 (a) EXTENSION.—Subsection (f) of section 965 of the 

6 Internal Revenue Code of 1986 is amended to read as fol7 lows: 

8 ‘‘(f) ELECTION.— 

9 ‘‘(1) IN GENERAL.—An election under this sec10 tion may be made for any taxable year beginning be11 fore December 31, 2012, and shall be made at such 

12 time and in such manner as the Secretary may pre13 scribe, and, once made, may be revoked only with 

14 the consent of the Secretary. 

15 ‘‘(2) CONTROLLED GROUPS.—If an election 

16 under this section is made by a member of a con17 trolled group of corporations (within the meaning of 

18 section 1563(a), except that ‘more than 50 percent’ 

19 shall be substituted for ‘at least 80 percent’ each 

20 place it appears therein) then, except as otherwise 

21 provided by the Secretary, such election shall apply 

22 to all members of such controlled group.’’. 

23 (b) DEDUCTION LIMITED BY PAYROLL INCREASE

24 AND PROPERTY PLACED IN SERVICE.—Subsection (b) of 

25 section 965 of such Code is amended to read as follows: 


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1 ‘‘(b) DEDUCTION LIMITED BY PAYROLL IN2 CREASE.— 

3 ‘‘(1) IN GENERAL.—The amount of dividends 

4 taken into account under subsection (a) for any tax5 able year shall not exceed an amount equal to the 

6 reinvestment amount of such employer (if any) for 

7 such taxable year. 

8 ‘‘(2) REINVESTMENT AMOUNT.—For purposes 

9 of this subsection— 

10 ‘‘(A) IN GENERAL.—The term ‘reinvest11 ment amount’ means the sum of— 

12 ‘‘(i) the employer’s payroll increase 

13 for the calendar year ending during the 

14 taxable year, plus 

15 ‘‘(ii) the basis of qualified property 

16 placed in service by the taxpayer during 

17 the taxable year. 

18 ‘‘(B) PAYROLL INCREASE.— 

19 ‘‘(i) IN GENERAL.—The term ‘payroll 

20 increase’ means, with respect to an em21 ployer for a calendar year, the excess (if 

22 any) of— 

23 ‘‘(I) the aggregate amount of 

24 wages paid by such employer to all 

25 employees for such calendar year, over 


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1 ‘‘(II) aggregate amount of infla2 tion adjusted wages paid by such em3 ployer to all employees for the pre4 ceding calendar year. 

5 ‘‘(ii) WAGES.—The term ‘wages’ has 

6 the meaning given such term by section 

7 3121(a) for purposes of section 3111(a). 

8 ‘‘(iii) INFLATION ADJUSTED WAGES.— 

9 The term ‘inflation adjusted wages’ means 

10 an amount equal to— 

11 ‘‘(I) wages with respect to an em12 ployee, multiplied by 

13 ‘‘(II) the cost-of-living adjust14 ment determined under section 1(f)(3) 

15 for the calendar year for which the re16 duction in deposits under this section 

17 is being determined occurs, deter18 mined by substituting ‘calendar year 

19 2010’ for ‘calendar year 1992’ in sub20 paragraph (B) thereof. 

21 ‘‘(C) QUALIFIED PROPERTY.—The term 

22 ‘qualified property’ means any tangible personal 

23 property with respect to which depreciation (or 

24 amortization in lieu of depreciation) is allow25 able. 


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1 ‘‘(3) BONUS REINVESTMENT AMOUNT FOR

2 2012.—In the case of any taxable year beginning in 

3 2012, the taxpayer may elect to increase the rein4 vestment amount for such taxable year by an 

5 amount equal to— 

6 ‘‘(A) the employer’s payroll increase for 

7 the calendar year ending during the preceding 

8 taxable year, plus 

9 ‘‘(B) the basis of qualified property placed 

10 in service by the taxpayer during the preceding 

11 taxable year after the mid-point of such pre12 ceding taxable year. 

13 ‘‘(4) ADJUSTMENTS FOR CERTAIN ACQUISI14 TIONS, ETC.—Under regulations prescribed by the 

15 Secretary— 

16 ‘‘(A) ACQUISITIONS.—If an employer ac17 quires the major portion of a trade or business 

18 of another person (hereafter in this paragraph 

19 referred to as the ‘predecessor’) or the major 

20 portion of a separate unit of a trade or business 

21 of a predecessor, then, for purposes of applying 

22 this section for any calendar year ending after 

23 such acquisition, the amount of wages or com24 pensation deemed paid by the employer during 

25 periods before such acquisition shall be inVerDate Mar 15 2010 02:14 Nov 18, 2011 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3448.IH H3448

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1 creased by so much of such wages or compensa2 tion paid by the predecessor with respect to the 

3 acquired trade or business as is attributable to 

4 the portion of such trade or business acquired 

5 by the employer. 

6 ‘‘(B) DISPOSITIONS.—If— 

7 ‘‘(i) an employer disposes of the major 

8 portion of any trade or business of the em9 ployer or the major portion of a separate 

10 unit of a trade or business of the employer 

11 in a transaction to which subparagraph 

12 (A) applies, and 

13 ‘‘(ii) the employer furnishes the ac14 quiring person such information as is nec15 essary for the application of subparagraph 

16 (A), 

17 then, for purposes of applying this section for 

18 any calendar year ending after such disposition, 

19 the amount of wages or compensation deemed 

20 paid by the employer during periods before such 

21 disposition shall be reduced by so much of such 

22 wages as is attributable to such trade or busi23 ness or separate unit.’’. 

24 (c) CONFORMING AMENDMENTS.— 


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1 (1) Subsection (c) of section 965 of such Code 

2 is amended by striking paragraphs (1) and (2) and 

3 by redesignating paragraphs (3), (4), and (5) as 

4 paragraphs (1), (2), and (3), respectively. 

5 (2) Subparagraph (B) of section 965(c)(5) of 

6 such Code is amended— 

7 (A) by striking ‘‘shall be limited to one 

8 $5,000,000,000 amount in subsection 

9 (b)(1)(A)’’ and inserting ‘‘shall be treated as 

10 one employer for purposes of determining the 

11 amount of any limitation under subsection (b)’’. 

12 (d) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2011. 

Æ 


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