II 

112TH CONGRESS 

1ST SESSION S. 1837 

To amend the Internal Revenue Code of 1986 to modify and permanently 

extend the incentives to reinvest foreign earnings in the United States. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 9, 2011 

Mr. LEE (for himself, Mr. CRAPO, Mr. DEMINT, Mr. PAUL, Mr. RISCH, and 

Mr. BLUNT) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

and permanently extend the incentives to reinvest foreign 

earnings in the United States. 

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 ‘‘Rebuilding America 

5 Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) United States multinational companies have 

9 an estimated $2,300,000,000,000 held in foreign acVerDate Mar 15 2010 03:16 Nov 10, 2011 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1837.IS S1837

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•S 1837 IS

1 counts that could be used to invest in domestic eco2 nomic recovery and employment growth. 

3 (2) Multinational companies are not investing 

4 those profits domestically due to high taxes. 

5 (3) The United States Treasury is not receiving 

6 any revenue from those foreign holdings. 

7 (4) Congress should encourage the investment 

8 of repatriated monies in domestic interests. 

9 SEC. 3. MODIFICATION AND PERMANENT EXTENSION OF 

10 THE INCENTIVES TO REINVEST FOREIGN 

11 EARNINGS IN THE UNITED STATES. 

12 (a) REPATRIATION SUBJECT TO 5 PERCENT TAX

13 RATE.—Subsection (a)(1) of section 965 of the Internal 

14 Revenue Code of 1986 is amended by striking ‘‘85 per15 cent’’ and inserting ‘‘85.7 percent’’. 

16 (b) PERMANENT EXTENSION TO ELECT REPATRI17 ATION.—Subsection (f) of section 965 of the Internal Rev18 enue Code of 1986 is amended to read as follows: 

19 ‘‘(f) ELECTION.—The taxpayer may elect to apply 

20 this section to any taxable year only if made on or before 

21 the due date (including extensions) for filing the return 

22 of tax for such taxable year.’’. 

23 (c) REPATRIATION INCLUDES CURRENT AND ACCU24 MULATED FOREIGN EARNINGS.— 


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1 (1) IN GENERAL.—Paragraph (1) of section 

2 965(b) of the Internal Revenue Code of 1986 is 

3 amended to read as follows: 

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

5 taken into account under subsection (a) shall not ex6 ceed the sum of the current and accumulated earn7 ings and profits described in section 959(c)(3) for 

8 the year a deduction is claimed under subsection (a), 

9 without diminution by reason of any distributions 

10 made during the election year, for all controlled for11 eign corporations of the United States shareholder.’’. 

12 (2) CONFORMING AMENDMENTS.— 

13 (A) Section 965(b) of such Code is amend14 ed by striking paragraphs (2) and (4) and by 

15 redesignating paragraph (3) as paragraph (2). 

16 (B) Section 965(c) of such Code is amend17 ed by striking paragraphs (1) and (2) and by 

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

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

20 (C) Paragraph (3) of section 965(c) of 

21 such Code, as redesignated by subparagraph 

22 (B), is amended to read as follows: 

23 ‘‘(3) CONTROLLED GROUPS.—All United States 

24 shareholders which are members of an affiliated 

25 group filing a consolidated return under section 


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1 1501 shall be treated as one United States share2 holder.’’. 

3 (d) CLERICAL AMENDMENTS.— 

4 (1) The heading for section 965 of the Internal 

5 Revenue Code of 1986 is amended by striking 

6 ‘‘TEMPORARY’’. 

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

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

9 amended by striking ‘‘Temporary dividends’’ and in10 serting ‘‘Dividends’’. 

11 (e) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years ending after the 

13 date of the enactment of this Act. 

Æ 


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