I 

113TH CONGRESS 

1ST SESSION H. R. 2084 

To establish the American Infrastructure Fund, to provide bond guarantees 

and make loans to States, local governments, and non-profit infrastructure providers for investments in certain infrastructure projects, and 

to provide equity investments in such projects, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 22, 2013 

Mr. DELANEY (for himself, Mr. BARR, Mr. BERA of California, Mr. CARNEY, 

Mr. COLE, Mr. CONNOLLY, Mr. RODNEY DAVIS of Illinois, Mr. 

FITZPATRICK, Ms. GABBARD, Mr. GARCIA, Mr. GIBSON, Mr. JOHNSON of 

Ohio, Mr. JOYCE, Mr. KENNEDY, Mr. KIND, Mr. KINZINGER of Illinois, 

Mr. MESSER, Mr. MORAN, Mr. MURPHY of Florida, Mr. PETERS of California, Mr. PITTENGER, Mr. POLIS, Mr. RUPPERSBERGER, Ms. SINEMA, 

Mr. STIVERS, Mr. TURNER, and Mr. YOHO) introduced the following bill; 

which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ways and Means, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To establish the American Infrastructure Fund, to provide 

bond guarantees and make loans to States, local governments, and non-profit infrastructure providers for investments in certain infrastructure projects, and to provide 

equity investments in such projects, and for other purposes. 


tkelley on DSK3SPTVN1PROD with BILLS
2 

•HR 2084 IH

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 ‘‘Partnership to Build 

5 America Act of 2013’’. 

6 SEC. 2. AMERICAN INFRASTRUCTURE FUND. 

7 (a) AMERICAN INFRASTRUCTURE FUND.— 

8 (1) IN GENERAL.—There is established a wholly 

9 owned Government corporation to be called the 

10 American Infrastructure Fund (‘‘AIF’’)— 

11 (A) which shall be headed by the Board of 

12 Trustees established under subsection (b); 

13 (B) which may have separate sub-accounts 

14 or subsidiaries for funds used to make loans, 

15 bond guarantees, and equity investments under 

16 this section and funds used to make bond guar17 antees under this section; 

18 (C) which shall be available to the AIF to 

19 pay for the costs of carrying out this section, 

20 including the compensation of the Board and 

21 other employees of the AIF; and 

22 (D) the funds of which may be invested by 

23 the Board in such manner as the Board deter24 mines appropriate. 


tkelley on DSK3SPTVN1PROD with BILLS
3 

•HR 2084 IH

1 (2) DEPOSITS TO AIF.—All funds received from 

2 bond issuances, loan payments, bond guarantee fees, 

3 and any other funds received in carrying out this 

4 section shall be held by AIF. 

5 (3) LIMITATIONS.—The charter of the AIF 

6 shall limit its activities to those activities described 

7 as the mission of the Board under subsection (b)(2). 

8 (4) OVERSIGHT.—The AIF shall register with 

9 the Securities and Exchange Commission and the 

10 Secretary shall report to Congress annually as to 

11 whether the AIF is fulfilling the mission of the 

12 Board under subsection (b)(2). 

13 (5) TREATMENT OF AIF.—Title 31, United 

14 States Code, is amended in each of sections 

15 9107(c)(3) and 9108(d)(2)— 

16 (A) by inserting ‘‘the American Infrastruc17 ture Fund,’’ after ‘‘the Regional Banks for Co18 operatives,’’; and 

19 (B) by striking ‘‘those banks’’ and insert20 ing ‘‘those entities’’. 

21 (b) BOARD OF TRUSTEES.— 

22 (1) IN GENERAL.—There is established a Board 

23 of Trustees of the AIF (the ‘‘Board’’), which shall 

24 be composed of 11 members, of which at least 4 

25 must be risk management experts, as certified by 


tkelley on DSK3SPTVN1PROD with BILLS
4 

•HR 2084 IH

1 the Board, having substantial experience in bond 

2 guarantees or municipal credit. 

3 (2) MISSION.—The Mission of the Board is— 

4 (A) to operate the AIF and its subsidiaries 

5 to be a low cost provider of bond guarantees, 

6 loans, and equity investments to State and local 

7 governments and non-profit infrastructure pro8 viders for both urban and rural non-profit in9 frastructure projects that provide a positive eco10 nomic impact and to meet such other standards 

11 as the Board may develop; 

12 (B) to operate the AIF in a self-sustaining 

13 manner so as to allow the AIF to repay its in14 frastructure bonds when due; 

15 (C) to not have a profit motive, but seek 

16 at all times to pursue its mission of providing 

17 low cost bond guarantees and loans while cov18 ering its costs, reserves as may be needed, and 

19 applying prudent underwriting standards; 

20 (D) to only consider projects put forth by 

21 State and local governments and not to seek 

22 projects directly; 

23 (E) to at all times make clear that no tax24 payer money supports the AIF or ever will; and 


tkelley on DSK3SPTVN1PROD with BILLS
5 

•HR 2084 IH

1 (F) to engage in no other activities other 

2 than those permitted under this section. 

3 (3) MEMBERSHIP.— 

4 (A) PRESIDENTIALLY-APPOINTED MEM5 BERS.—Except as provided under subparagraph 

6 (C), 4 members of the Board shall be appointed 

7 by the President, by and with the advice and 

8 consent of the Senate, and serve for a term of 

9 7 years. 

10 (B) ADDITIONAL MEMBERS.—Except as 

11 provided under subparagraph (C), 7 members 

12 of the Board shall be appointed by the current 

13 members of the Board appointed pursuant to 

14 this subparagraph or subparagraph (C)(ii), and 

15 serve for a term of 7 years. 

16 (C) INITIAL MEMBERS.—The Board shall 

17 initially consist of the following members, who 

18 shall be appointed not later than the end of the 

19 60-day period beginning on the date that bonds 

20 are issued under subsection (e): 

21 (i) Four members, appointed by the 

22 President, by and with the advice and con23 sent of the Senate. 

24 (ii) Seven additional members, ap25 pointed one each by the seven entities purVerDate Mar 15 2010 22:38 May 24, 2013 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2084.IH H2084

tkelley on DSK3SPTVN1PROD with BILLS
6 

•HR 2084 IH

1 chasing the largest amount of bonds (by 

2 aggregate face amount of bonds pur3 chased) under subsection (e). 

4 (D) STAGGERED TERMS.—The members of 

5 the Board shall serve staggered terms, with 2 

6 each of the initial members of the Board serv7 ing for terms of 4, 5, 6, 7, and 8 years, respec8 tively, and the initial Chair selected under sub9 paragraph (E) serving for 9 years. The decision 

10 of which Board members, other than the Chair, 

11 serve for which initial terms shall be made by 

12 the members of the Board drawing lots. 

13 (E) CHAIR.—The members of the Board 

14 shall choose 1 member to serve as the Chair of 

15 the Board for a term of 7 years, except that the 

16 initial Chair shall serve for a term of 7 years, 

17 as described under subparagraph (D). 

18 (F) VACANCIES.—Any member of the 

19 Board appointed to fill a vacancy occurring be20 fore the expiration of the term to which that 

21 member’s predecessor was appointed shall be 

22 appointed only for the remainder of the term. 

23 (G) CONTINUATION OF SERVICE.—Each 

24 member of the Board may continue to serve 

25 after the expiration of the term of office to 


tkelley on DSK3SPTVN1PROD with BILLS
7 

•HR 2084 IH

1 which that member was appointed until a suc2 cessor has been appointed. 

3 (H) CONFLICTS OF INTEREST.—No mem4 ber of the Board may have a financial interest 

5 in, or be employed by, a Qualified Infrastruc6 ture Project (‘‘QIP’’) related to assistance pro7 vided under this section or any entity that has 

8 purchased bonds under subsection (e). Owning 

9 municipal credit of any State or local govern10 ment or owning the securities of a diversified 

11 company that engages in infrastructure activi12 ties, provided those activities constitute less 

13 than 20 percent of the company’s revenues, or 

14 investing in broadly held investment funds shall 

15 not be deemed to create a conflict of interest. 

16 The Board may issue regulations to define 

17 terms used under this subparagraph. 

18 (4) COMPENSATION.—The members of the 

19 Board shall be compensated at an amount to be set 

20 by the Board, but under no circumstances may such 

21 compensation be higher than the rate prescribed for 

22 level IV of the Executive Schedule under section 

23 5315 of title 5, United States Code. 

24 (5) STAFF.—The Board shall employ and set 

25 compensation for such staff as the Board determines 


tkelley on DSK3SPTVN1PROD with BILLS
8 

•HR 2084 IH

1 as is necessary to carry out the activities and mis2 sion of the AIF, and such staff may be paid without 

3 regard to the provisions of chapter 51 and sub4 chapter III of chapter 53, United States Code, relat5 ing to classification and General Schedule pay rates. 

6 (6) PROCEDURES.—The Board shall establish 

7 such procedures as are necessary to carry out this 

8 section. 

9 (7) CORPORATE GOVERNANCE STANDARDS.— 

10 (A) BOARD COMMITTEES GENERALLY.— 

11 The Board shall maintain all of the committees 

12 required to be maintained by the board of direc13 tors of an issuer listed on the New York Stock 

14 Exchange as of the date of the enactment of 

15 this section. 

16 (B) RISK MANAGEMENT COMMITTEE.—The 

17 Board shall maintain a risk management com18 mittee, which shall— 

19 (i) consist of 4 members of the Board, 

20 with the initial 4 members consisting of 2 

21 members appointed under paragraph 

22 (3)(C)(i) and 2 members appointed under 

23 paragraph (3)(C)(ii); 

24 (ii) employ additional staff who are 

25 certified by the Board as having significant 


tkelley on DSK3SPTVN1PROD with BILLS
9 

•HR 2084 IH

1 and relevant experience in insurance un2 derwriting and credit risk management; 

3 and 

4 (iii) establish the risk management 

5 policies used by the Board. 

6 (C) STANDARDS.—The Board shall, to the 

7 extent practicable, follow all standards with re8 spect to corporate governance that are required 

9 to be followed by the board of directors of an 

10 issuer listed on the New York Stock Exchange 

11 as of the date of the enactment of this section. 

12 (c) INFRASTRUCTURE INVESTMENT.— 

13 (1) IN GENERAL.—The AIF shall provide bond 

14 guarantees to debt issued by State and local govern15 ments and non-profit infrastructure providers, make 

16 loans to States, local governments, and non-profit 

17 infrastructure providers, and make equity invest18 ments in projects sponsored by State and local gov19 ernments and non-profit infrastructure provider to 

20 help Qualified Infrastructure Projects (‘‘QIPs’’). 

21 The AIF may not make any loans or provide bond 

22 guaranties to for-profit entities. 

23 (2) QUALIFIED INFRASTRUCTURE PROJECTS.— 

24 A project qualifies as a QIP under this section if— 


tkelley on DSK3SPTVN1PROD with BILLS
10 

•HR 2084 IH

1 (A) the project involves the construction, 

2 maintenance, improvement, or repair of a trans3 portation, energy, water, communications, or 

4 educational facility; and 

5 (B) the recipient of bond guarantees, 

6 loans, equity investments, or any other financ7 ing technique authorized under this Act pro8 vides written assurances prescribed by the AIF 

9 that the project will be performed in compliance 

10 with the requirements of all Federal laws that 

11 would otherwise apply to similar projects to 

12 which the United States is a party. 

13 (3) APPLICATION FOR ASSISTANCE.— 

14 (A) IN GENERAL.—A State or local gov15 ernment that wishes to receive a loan or bond 

16 guarantee under this section shall submit an 

17 application to the Board in such form and man18 ner and containing such information as the 

19 Board may require. 

20 (B) REQUIREMENT FOR NON-PROFIT IN21 FRASTRUCTURE PROVIDERS TO APPLY

22 THROUGH STATE OR LOCAL GOVERNMENTS.—A 

23 non-profit infrastructure provider may only re24 ceive a bond guarantee, loan, or equity invest25 ment under this section if the State or local 


tkelley on DSK3SPTVN1PROD with BILLS
11 

•HR 2084 IH

1 government for the jurisdiction in which the 

2 non-profit infrastructure provider is located 

3 submits an application pursuant to subpara4 graph (A) on behalf of such non-profit infra5 structure provider. 

6 (4) LIMITATIONS ON SINGLE STATE AWARDS.— 

7 (A) ANNUAL LIMITATION.—The Board 

8 shall set an annual limit, as a percentage of 

9 total assistance provided under this section dur10 ing a year, on the amount of assistance a single 

11 State (including local governments and other 

12 non-profit infrastructure providers within such 

13 State) may receive in assistance provided under 

14 this section. 

15 (B) CUMULATIVE LIMITATION.—The 

16 Board shall set a limit, as a percentage of total 

17 assistance provided under this section out18 standing at any one time, on the amount of as19 sistance a single State (including local govern20 ments and other non-profit infrastructure pro21 viders within such State) may receive in assist22 ance provided under this section. 

23 (5) LOAN SPECIFICATIONS.—Loans made under 

24 this section shall have such maturity and carry such 

25 interest rate as the Board determines appropriate. 


tkelley on DSK3SPTVN1PROD with BILLS
12 

•HR 2084 IH

1 (6) BOND GUARANTEE.—The Board shall 

2 charge such fees for Bond guarantees made under 

3 this section as the Board determines appropriate. 

4 (7) EQUITY INVESTMENTS.—With respect to a 

5 QIP, the amount of an equity investment made by 

6 the AIF in such QIP may not exceed 20 percent of 

7 the total cost of the QIP. 

8 (8) PUBLIC-PRIVATE PARTNERSHIP REQUIRE9 MENTS.—At least 25 percent of the assistance pro10 vided under this section shall be provided to QIPs 

11 for which at least 20 percent of the financing for 

12 such QIPs comes from private debt or equity. 

13 (9) PROHIBITION ON PRINCIPAL FORGIVE14 NESS.—With respect to a loan made under this sec15 tion, the Board may not forgive any amount of prin16 cipal on such loan. 

17 (d) AMERICAN INFRASTRUCTURE BONDS.— 

18 (1) IN GENERAL.—The Secretary shall, not 

19 later than the end of the 90-day period following the 

20 date of the enactment of this section and acting 

21 through the AIF, issue bonds, to be called ‘‘Amer22 ican Infrastructure Bonds’’, the proceeds from which 

23 shall be deposited into the AIF. 

24 (2) FORMS AND DENOMINATIONS; INTEREST.— 

25 American Infrastructure Bonds shall— 


tkelley on DSK3SPTVN1PROD with BILLS
13 

•HR 2084 IH

1 (A) be in such forms and denominations as 

2 determined by the Secretary, and shall have a 

3 50-year maturity; and 

4 (B) bear interest of 1 percent. 

5 (3) NO FULL FAITH AND CREDIT.—Interest 

6 and principal payments paid to holders of American 

7 Infrastructure Bonds shall be paid from the AIF, to 

8 the extent funds are available, and shall not be 

9 backed by the full faith and credit of the United 

10 States. 

11 (4) AMOUNT OF BONDS.—The aggregate face 

12 amount of the bonds issued under this subsection 

13 shall be $50,000,000,000. 

14 (5) SALE OF AMERICAN INFRASTRUCTURE

15 BONDS.— 

16 (A) COMPETITIVE BIDDING PROCESS.— 

17 The Secretary shall sell the $50,000,000,000 of 

18 American Infrastructure Bonds— 

19 (i) through a competitive bidding 

20 process that encourages aggressive bidding; 

21 (ii) in a manner so as to ensure that 

22 there are at least 7 different un-affiliated 

23 purchasers; and 

24 (iii) with prospective purchasers bid25 ding on how low of a multiplier they will 


tkelley on DSK3SPTVN1PROD with BILLS
14 

•HR 2084 IH

1 accept (for purposes of subsection (b)(1) of 

2 section 966 of the Internal Revenue Code 

3 of 1986) when purchasing the American 

4 Infrastructure Bonds, for purposes of ap5 plying the foreign earnings exclusion de6 scribed under that section. 

7 (B) LIMITATION.—The multiplier de8 scribed under subparagraph (A)(iii) may not be 

9 greater than 6. 

10 (6) REIMBURSEMENT OF COSTS.—The Board 

11 shall repay the Secretary, from funds in the AIF, for 

12 the costs to the Secretary in carrying out this sub13 section. 

14 (e) ADDITIONAL BONDS.— 

15 (1) IN GENERAL.—The Board may issue such 

16 other bonds as the Board determines appropriate, 

17 the proceeds from which shall be deposited into the 

18 AIF. 

19 (2) NO FULL FAITH AND CREDIT.—Interest 

20 and principal payments paid to holders of bonds 

21 issued pursuant to paragraph (1) shall be paid from 

22 the AIF, to the extent funds are available, and shall 

23 not be backed by the full faith and credit of the 

24 United States. 

25 (f) DEFINITIONS.—For purposes of this section: 


tkelley on DSK3SPTVN1PROD with BILLS
15 

•HR 2084 IH

1 (1) BOND GUARANTEE.—The term ‘‘bond guar2 antee’’ has the meaning given the term ‘‘loan guar3 antee’’ under section 502 of the Federal Credit Re4 form Act of 1990 (2 U.S.C. 661a). 

5 (2) COST.—With respect to a loan or a bond 

6 guarantee, the term ‘‘cost’’ has the meaning given 

7 such term under section 502 of the Federal Credit 

8 Reform Act of 1990 (2 U.S.C. 661a). 

9 (3) NON-PROFIT INFRASTRUCTURE PRO10 VIDER.—The term ‘‘non-profit infrastructure pro11 vider’’ means a non-profit entity that seeks to fi12 nance a QIP. 

13 (4) LOAN.—The term ‘‘loan’’ has the meaning 

14 given the term ‘‘direct loan’’ under section 502 of 

15 the Federal Credit Reform Act of 1990 (2 U.S.C. 

16 661a). 

17 (5) SECRETARY.—The term ‘‘Secretary’’ means 

18 the Secretary of the Treasury. 

19 (6) STATE.—The term ‘‘State’’ means each of 

20 the several States, the District of Columbia, any ter21 ritory or possession of the United States, and each 

22 federally recognized Indian tribe. 


tkelley on DSK3SPTVN1PROD with BILLS
16 

•HR 2084 IH

1 SEC. 3. FOREIGN EARNINGS EXCLUSION FOR PURCHASE OF 

2 INFRASTRUCTURE BONDS. 

3 (a) IN GENERAL.—Subpart F of part III of sub4 chapter N of chapter 1 of the Internal Revenue Code of 

5 1986 is amended by adding at the end the following new 

6 section: 

7 ‘‘SEC. 966. FOREIGN EARNINGS EXCLUSION FOR PURCHASE 

8 OF INFRASTRUCTURE BONDS. 

9 ‘‘(a) EXCLUSION.—In the case of a corporation which 

10 is a United States shareholder and for which the election 

11 under this section is in effect for the taxable year, gross 

12 income does not include an amount equal to the qualified 

13 cash dividend amount. 

14 ‘‘(b) QUALIFIED CASH DIVIDEND AMOUNT.—For 

15 purposes of this section, the term ‘qualified cash dividend 

16 amount’ means an amount of the cash dividends which 

17 are received during a taxable year by such shareholder 

18 from controlled foreign corporations equal to— 

19 ‘‘(1) the multiplier determined under section 

20 2(d)(5) of the Partnership to Build America Act of 

21 2013 for such shareholder, multiplied by 

22 ‘‘(2) the face amount of qualified infrastructure 

23 bonds acquired at its original issue (directly or 

24 through an underwriter) by such shareholder. 

25 ‘‘(c) LIMITATIONS.— 


tkelley on DSK3SPTVN1PROD with BILLS
17 

•HR 2084 IH

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

2 taken into account under subsection (a) for a tax3 able year shall not exceed the lesser of— 

4 ‘‘(A) the cash dividends received by the 

5 taxpayer for such taxable year, or 

6 ‘‘(B) the amount shown on the applicable 

7 financial statement as earnings permanently re8 invested outside the United States. 

9 ‘‘(2) DIVIDENDS MUST BE EXTRAORDINARY.— 

10 The amount of dividends taken into account under 

11 subsection (a) shall not exceed the excess (if any) 

12 of— 

13 ‘‘(A) the cash dividends received during 

14 the taxable year by such shareholder from con15 trolled foreign corporations, over 

16 ‘‘(B) the annual average for the base pe17 riod years of the cash dividends received during 

18 each base period year by such shareholder from 

19 controlled foreign corporations. 

20 ‘‘(3) REDUCTION OF BENEFIT IF INCREASE IN

21 RELATED PARTY INDEBTEDNESS.—The amount of 

22 dividends which would (but for this paragraph) be 

23 taken into account under subsection (a) shall be re24 duced by the excess (if any) of— 


tkelley on DSK3SPTVN1PROD with BILLS
18 

•HR 2084 IH

1 ‘‘(A) the amount of indebtedness of the 

2 controlled foreign corporation to any related 

3 person (as defined in section 954(d)(3)) as of 

4 the close of the taxable year for which the elec5 tion under this section is in effect, over 

6 ‘‘(B) the amount of indebtedness of the 

7 controlled foreign corporation to any related 

8 person (as so defined) as of the close of the pre9 ceding taxable year. 

10 All controlled foreign corporations with respect to 

11 which the taxpayer is a United States shareholder 

12 shall be treated as 1 controlled foreign corporation 

13 for purposes of this subsection. The Secretary may 

14 prescribe such regulations as may be necessary or 

15 appropriate to prevent the avoidance of the purposes 

16 of this subsection, including regulations which pro17 vide that cash dividends shall not be taken into ac18 count under subsection (a) to the extent such divi19 dends are attributable to the direct or indirect trans20 fer (including through the use of intervening entities 

21 or capital contributions) of cash or other property 

22 from a related person (as so defined) to a controlled 

23 foreign corporation. 

24 ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur25 poses of this section— 


tkelley on DSK3SPTVN1PROD with BILLS
19 

•HR 2084 IH

1 ‘‘(1) QUALIFIED INFRASTRUCTURE BONDS.— 

2 The term ‘qualified infrastructure bond’ means a 

3 bond issued under section 2(d) of the Partnership to 

4 Build America Act of 2013. 

5 ‘‘(2) APPLICABLE FINANCIAL STATEMENT.— 

6 The term ‘applicable financial statement’ means, 

7 with respect to a taxable year— 

8 ‘‘(A) with respect to a United States 

9 shareholder which is required to file a financial 

10 statement with the Securities and Exchange 

11 Commission (or which is included in such a 

12 statement so filed by another person), the most 

13 recent audited annual financial statement (in14 cluding the notes which form an integral part 

15 of such statement) of such shareholder (or 

16 which includes such shareholder)— 

17 ‘‘(i) which was so filed for such tax18 able year, and 

19 ‘‘(ii) which is certified as being pre20 pared in accordance with generally accept21 ed accounting principles, and 

22 ‘‘(B) with respect to any other United 

23 States shareholder, the most recent audited fi24 nancial statement (including the notes which 

25 form an integral part of such statement) of 


tkelley on DSK3SPTVN1PROD with BILLS
20 

•HR 2084 IH

1 such shareholder (or which includes such share2 holder)— 

3 ‘‘(i) which is certified as being pre4 pared in accordance with generally accept5 ed accounting principles, and 

6 ‘‘(ii) which is used for the purposes of 

7 a statement or report— 

8 ‘‘(I) to creditors, 

9 ‘‘(II) to shareholders, or 

10 ‘‘(III) for any other substantial 

11 nontax purpose. 

12 ‘‘(3) BASE PERIOD YEARS.— 

13 ‘‘(A) IN GENERAL.—The base period years 

14 are the 3 taxable years— 

15 ‘‘(i) which are among the 5 most re16 cent preceding taxable years ending before 

17 the taxable year, and 

18 ‘‘(ii) which are determined by dis19 regarding— 

20 ‘‘(I) 1 taxable year for which the 

21 amount described in subsection 

22 (c)(2)(B) is the largest, and 

23 ‘‘(II) 1 taxable year for which 

24 such amount is the smallest. 


tkelley on DSK3SPTVN1PROD with BILLS
21 

•HR 2084 IH

1 ‘‘(B) SHORTER PERIOD.—If the taxpayer 

2 has fewer than 5 taxable years ending before 

3 the taxable year, then in lieu of applying sub4 paragraph (A), the base period years shall in5 clude all the taxable years of the taxpayer end6 ing before such taxable year. 

7 ‘‘(C) MERGERS, ACQUISITIONS, ETC.— 

8 ‘‘(i) IN GENERAL.—Rules similar to 

9 the rules of subparagraphs (A) and (B) of 

10 section 41(f)(3) shall apply for purposes of 

11 this paragraph. 

12 ‘‘(ii) SPIN-OFFS, ETC.—If there is a 

13 distribution to which section 355 (or so 

14 much of section 356 as relates to section 

15 355) applies during the 5-year period re16 ferred to in subparagraph (A)(i) and the 

17 controlled corporation (within the meaning 

18 of section 355) is a United States share19 holder— 

20 ‘‘(I) the controlled corporation 

21 shall be treated as being in existence 

22 during the period that the distributing 

23 corporation (within the meaning of 

24 section 355) is in existence, and 


tkelley on DSK3SPTVN1PROD with BILLS
22 

•HR 2084 IH

1 ‘‘(II) for purposes of applying 

2 subsection (c)(2) to the controlled cor3 poration and the distributing corpora4 tion, amounts described in subsection 

5 (c)(2)(B) which are received or includ6 ible by the distributing corporation or 

7 controlled corporation (as the case 

8 may be) before the distribution re9 ferred to in subclause (I) from a con10 trolled foreign corporation shall be al11 located between such corporations in 

12 proportion to their respective interests 

13 as United States shareholders of such 

14 controlled foreign corporation imme15 diately after such distribution. 

16 Subclause (II) shall not apply if neither 

17 the controlled corporation nor the distrib18 uting corporation is a United States share19 holder of such controlled foreign corpora20 tion immediately after such distribution. 

21 ‘‘(4) DIVIDEND.—The term ‘dividend’ shall not 

22 include amounts includible in gross income as a divi23 dend under section 78, 367, or 1248. In the case of 

24 a liquidation under section 332 to which section 

25 367(b) applies, the preceding sentence shall not 


tkelley on DSK3SPTVN1PROD with BILLS
23 

•HR 2084 IH

1 apply to the extent the United States shareholder 

2 actually receives cash as part of the liquidation. 

3 ‘‘(5) COORDINATION WITH DIVIDEND RECEIVED

4 DEDUCTION.—No deduction shall be allowed under 

5 section 243 or 245 for any dividend which is ex6 cluded from income by subsection (a). 

7 ‘‘(6) CONTROLLED GROUPS.—All United States 

8 shareholders which are members of an affiliated 

9 group filing a consolidated return under section 

10 1501 shall be treated as one United States share11 holder. 

12 ‘‘(7) REPORTING.—The Secretary shall require 

13 by regulation or other guidance the reporting of 

14 such information as the Secretary may require to 

15 carry out this section. 

16 ‘‘(e) DENIAL OF FOREIGN TAX CREDIT; DENIAL OF

17 CERTAIN EXPENSES.— 

18 ‘‘(1) FOREIGN TAX CREDIT.— 

19 ‘‘(A) IN GENERAL.—No credit shall be al20 lowed under section 901 for any taxes paid or 

21 accrued (or treated as paid or accrued) with re22 spect to the excluded portion of any dividend. 

23 ‘‘(B) DENIAL OF DEDUCTION OF RELATED

24 TAX.—No deduction shall be allowed under this 


tkelley on DSK3SPTVN1PROD with BILLS
24 

•HR 2084 IH

1 chapter for any tax for which credit is not al2 lowable by reason of the preceding sentence. 

3 ‘‘(2) EXPENSES.—No deduction shall be al4 lowed for expenses directly allocable to the exclud5 able portion described in paragraph (1). 

6 ‘‘(3) EXCLUDABLE PORTION.—For purposes of 

7 paragraph (1), unless the taxpayer otherwise speci8 fies, the excludable portion of any dividend or other 

9 amount is the amount which bears the same ratio to 

10 the amount of such dividend or other amount as the 

11 amount excluded from income under subsection (a) 

12 for the taxable year bears to the amount described 

13 in subsection (c)(2)(A) for such year. 

14 ‘‘(4) COORDINATION WITH SECTION 78.—Sec15 tion 78 shall not apply to any tax which is not allow16 able as a credit under section 901 by reason of this 

17 subsection. 

18 ‘‘(f) ELECTION TO HAVE SECTION APPLY.—A tax19 payer may elect to have this section apply for any taxable 

20 year.’’. 

21 (b) CLERICAL AMENDMENT.—The table of sections 

22 for subpart F of part III of subchapter N of chapter 1 

23 of such Code is amended by adding at the end the fol24 lowing new item: 

‘‘Sec. 966. Foreign earnings exclusion for purchase of infrastructure bonds.’’. 


tkelley on DSK3SPTVN1PROD with BILLS
25 

•HR 2084 IH

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to dividends received for taxable 

3 years ending after the date of the enactment of this Act. 

Æ 


tkelley on DSK3SPTVN1PROD with BILLS