I 

118TH CONGRESS 

2D SESSION H. R. 8274 

To amend the Internal Revenue Code of 1986 to encourage the transfer 

of intangible property from controlled foreign corporations to United 

States shareholders. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 7, 2024 

Mr. LAHOOD (for himself, Mr. FERGUSON, Mr. SMITH of Nebraska, Mrs. 

MILLER of West Virginia, Ms. TENNEY, and Mr. FEENSTRA) 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 encourage 

the transfer of intangible property from controlled foreign corporations to United States shareholders. 

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 ‘‘Bringing Back Amer5 ican Jobs Through Intellectual Property Repatriation 

6 Act’’. 


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1 SEC. 2. SPECIAL RULES FOR TRANSFERS OF INTANGIBLE 

2 PROPERTY FROM CONTROLLED FOREIGN 

3 CORPORATIONS TO UNITED STATES SHARE4 HOLDERS. 

5 (a) IN GENERAL.—Subpart F of part III of sub6 chapter N of chapter 1 of the Internal Revenue Code of 

7 1986 is amended by adding at the end the following new 

8 section: 

9 ‘‘SEC. 966. TRANSFERS OF INTANGIBLE PROPERTY TO 

10 UNITED STATES SHAREHOLDERS. 

11 ‘‘(a) IN GENERAL.—If a controlled foreign corpora12 tion holds intangible property on the date of the enact13 ment of this section and thereafter distributes such prop14 erty to a domestic corporation which is a United States 

15 shareholder with respect to such controlled foreign cor16 poration— 

17 ‘‘(1) for purposes of part I of subchapter C and 

18 any other provision of this title specified by the Sec19 retary, the fair market value of such property on the 

20 date of such distribution shall be treated as not ex21 ceeding the adjusted basis of such property imme22 diately before such distribution, and 

23 ‘‘(2) if any portion of such distribution is not 

24 a dividend— 


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1 ‘‘(A) no gain shall be recognized by such 

2 United States shareholder with respect to such 

3 distribution, and 

4 ‘‘(B) the adjusted basis of such property in 

5 the hands of such United States shareholder 

6 immediately after such distribution shall be the 

7 adjusted basis of such property in the hands of 

8 such controlled foreign corporation immediately 

9 before such distribution reduced by the amount 

10 (if any) of gain not recognized by reason of 

11 subparagraph (A) (determined after the appli12 cation of paragraph (1)). 

13 ‘‘(b) INTANGIBLE PROPERTY.—For purposes of this 

14 section, the term ‘intangible property’ means any— 

15 ‘‘(1) patent, copyright, license, invention, for16 mula, process, design, pattern, know-how, or format, 

17 ‘‘(2) method, program, system, procedure, cam18 paign, survey, study, forecast, estimate, or technical 

19 data, 

20 ‘‘(3) computer software (as defined in section 

21 197(e)(3)(B)), or 

22 ‘‘(4) any similar item, which has substantial 

23 value independent of the services of any individual. 

24 ‘‘(c) APPLICATION TO TRANSFERS OF INTANGIBLE

25 PROPERTY TO A UNITED STATES SHAREHOLDER


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1 THROUGH A CHAIN OF CONTROLLED FOREIGN CORPORA2 TIONS.—In the case of intangible property which is held 

3 by a controlled foreign corporation on the date of the en4 actment of this section and is thereafter distributed to an5 other controlled foreign corporation, the rules of sub6 section (a) shall apply with respect to such distribution 

7 (and any subsequent distribution of such property by a 

8 controlled foreign corporation to another controlled for9 eign corporation or United States shareholder) if, not later 

10 than 180 days after the date of such first distribution, 

11 such property is distributed to a domestic corporation 

12 which is a United States shareholder with respect to each 

13 such controlled foreign corporation.’’. 

14 (b) CONFORMING AMENDMENTS.— 

15 (1) Section 197(f)(2)(B)(i) of such Code is 

16 amended by inserting ‘‘966(a),’’ after ‘‘731,’’. 

17 (2) The table of sections for subpart F of part 

18 III of subchapter N of chapter 1 of such Code is 

19 amended by adding at the end the following new 

20 item: 

‘‘Sec. 966. Transfers of intangible property to United States shareholders.’’. 

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

22 this section shall apply to distributions made in taxable 

23 years of foreign corporations beginning after December 

24 31, 2023, and to taxable years of United States shareVerDate Sep 11 2014 03:45 Jun 09, 2024 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8274.IH H8274

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1 holders in which or with which such taxable years of for2 eign corporations end. 

Æ 


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