I 

117TH CONGRESS 

1ST SESSION H. R. 2341 

To amend the Internal Revenue Code of 1986 to encourage domestic 

insourcing and discourage foreign outsourcing. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2021 

Mr. PASCRELL (for himself, Mr. SUOZZI, Ms. NORTON, and Ms. BROWNLEY) 

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 

domestic insourcing and discourage foreign outsourcing. 

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 ‘‘Bring Jobs Home 

5 Act’’. 

6 SEC. 2. CREDIT FOR INSOURCING EXPENSES. 

7 (a) IN GENERAL.—Subpart D of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 is amended by adding at the end the following new 

10 section: 


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1 ‘‘SEC. 45U. CREDIT FOR INSOURCING EXPENSES. 

2 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

3 insourcing expenses credit for any taxable year is an 

4 amount equal to 20 percent of the eligible insourcing ex5 penses of the taxpayer which are taken into account in 

6 such taxable year under subsection (d). 

7 ‘‘(b) ELIGIBLE INSOURCING EXPENSES.—For pur8 poses of this section— 

9 ‘‘(1) IN GENERAL.—The term ‘eligible 

10 insourcing expenses’ means— 

11 ‘‘(A) eligible expenses paid or incurred by 

12 the taxpayer in connection with the elimination 

13 of any business unit of the taxpayer (or of any 

14 member of any expanded affiliated group in 

15 which the taxpayer is also a member) located 

16 outside the United States, and 

17 ‘‘(B) eligible expenses paid or incurred by 

18 the taxpayer in connection with the establish19 ment of any business unit of the taxpayer (or 

20 of any member of any expanded affiliated group 

21 in which the taxpayer is also a member) located 

22 within the United States, 

23 if such establishment constitutes the relocation of 

24 business unit so eliminated. For purposes of the pre25 ceding sentence, a relocation shall not be treated as 

26 failing to occur merely because such elimination ocVerDate Sep 11 2014 04:03 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2341.IH H2341

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1 curs in a different taxable year than such establish2 ment. 

3 ‘‘(2) ELIGIBLE EXPENSES.—The term ‘eligible 

4 expenses’ means— 

5 ‘‘(A) any amount for which a deduction is 

6 allowed to the taxpayer under section 162, and 

7 ‘‘(B) permit and license fees, lease broker8 age fees, equipment installation costs, and, to 

9 the extent provided by the Secretary, other 

10 similar expenses. 

11 Such term does not include any compensation which 

12 is paid or incurred in connection with severance 

13 from employment and, to the extent provided by the 

14 Secretary, any similar amount. 

15 ‘‘(3) BUSINESS UNIT.—The term ‘business unit’ 

16 means— 

17 ‘‘(A) any trade or business, and 

18 ‘‘(B) any line of business, or functional 

19 unit, which is part of any trade or business. 

20 ‘‘(4) EXPANDED AFFILIATED GROUP.—The 

21 term ‘expanded affiliated group’ means an affiliated 

22 group as defined in section 1504(a), determined 

23 without regard to section 1504(b)(3) and by sub24 stituting ‘more than 50 percent’ for ‘at least 80 per25 cent’ each place it appears in section 1504(a). A 


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1 partnership or any other entity (other than a cor2 poration) shall be treated as a member of an ex3 panded affiliated group if such entity is controlled 

4 (within the meaning of section 954(d)(3)) by mem5 bers of such group (including any entity treated as 

6 a member of such group by reason of this para7 graph). 

8 ‘‘(5) EXPENSES MUST BE PURSUANT TO

9 INSOURCING PLAN.—Amounts shall be taken into ac10 count under paragraph (1) only to the extent that 

11 such amounts are paid or incurred pursuant to a 

12 written plan approved by the board of directors or 

13 authorized officers to carry out the relocation de14 scribed in paragraph (1). 

15 ‘‘(6) OPERATING EXPENSES NOT TAKEN INTO

16 ACCOUNT.—Any amount paid or incurred in connec17 tion with the ongoing operation of a business unit 

18 shall not be treated as an amount paid or incurred 

19 in connection with the establishment or elimination 

20 of such business unit. 

21 ‘‘(c) INCREASED DOMESTIC EMPLOYMENT REQUIRE22 MENT.—No credit shall be allowed under this section un23 less the number of full-time equivalent employees of the 

24 taxpayer for the taxable year for which the credit is 

25 claimed exceeds the number of full-time equivalent emVerDate Sep 11 2014 04:03 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2341.IH H2341

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1 ployees of the taxpayer for the last taxable year ending 

2 before the first taxable year in which such eligible 

3 insourcing expenses were paid or incurred. For purposes 

4 of this subsection, full-time equivalent employees has the 

5 meaning given such term under section 45R(d) (and the 

6 applicable rules of section 45R(e)), determined by only 

7 taking into account wages (as otherwise defined in section 

8 45R(e)) paid with respect to services performed within the 

9 United States. All employers treated as a single employer 

10 under subsection (b), (c), (m), or (o) of section 414 shall 

11 be treated as a single employer for purposes of this sub12 section. 

13 ‘‘(d) CREDIT ALLOWED UPON COMPLETION OF

14 INSOURCING PLAN.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), eligible insourcing expenses shall be taken 

17 into account under subsection (a) in the taxable year 

18 during which the plan described in subsection (b)(5) 

19 has been completed and all eligible insourcing ex20 penses pursuant to such plan have been paid or in21 curred. 

22 ‘‘(2) ELECTION TO APPLY EMPLOYMENT TEST

23 AND CLAIM CREDIT IN FIRST FULL TAXABLE YEAR

24 AFTER COMPLETION OF PLAN.—If the taxpayer 

25 elects the application of this paragraph, eligible 


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1 insourcing expenses shall be taken into account 

2 under subsection (a) in the first taxable year after 

3 the taxable year described in paragraph (1). 

4 ‘‘(e) POSSESSIONS TREATED AS PART OF THE

5 UNITED STATES.—For purposes of this section, the term 

6 ‘United States’ shall be treated as including each posses7 sion of the United States (including the Commonwealth 

8 of Puerto Rico and the Commonwealth of the Northern 

9 Mariana Islands). 

10 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

11 such regulations or other guidance as may be necessary 

12 or appropriate to carry out the purposes of this section.’’. 

13 (b) CREDIT TO BE PART OF GENERAL BUSINESS

14 CREDIT.—Section 38(b) of such Code is amended by strik15 ing ‘‘plus’’ at the end of paragraph (32), by striking the 

16 period at the end of paragraph (33) and inserting ‘‘, plus’’, 

17 and by adding at the end the following new paragraph: 

18 ‘‘(34) the insourcing expenses credit determined 

19 under section 45U(a).’’. 

20 (c) CONFORMING AMENDMENTS.— 

21 (1) Section 280C of such Code is amended by 

22 adding at the end the following new subsection: 

23 ‘‘(i) CREDIT FOR INSOURCING EXPENSES.—No de24 duction shall be allowed for that portion of the expenses 

25 otherwise allowable as a deduction taken into account in 


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1 determining the credit under section 45U for the taxable 

2 year which is equal to the amount of the credit determined 

3 for such taxable year under section 45U(a).’’. 

4 (2) The table of sections for subpart D of part 

5 IV of subchapter A of chapter 1 of such Code is 

6 amended by adding at the end the following new 

7 item: 

‘‘Sec. 45U. Credit for insourcing expenses.’’. 

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

9 this section shall apply to amounts paid or incurred after 

10 the date of the enactment of this Act. 

11 (e) APPLICATION TO UNITED STATES POSSES12 SIONS.— 

13 (1) PAYMENTS TO POSSESSIONS.— 

14 (A) MIRROR CODE POSSESSIONS.—The 

15 Secretary of the Treasury shall make periodic 

16 payments to the United States Virgin Islands, 

17 Guam, and the Commonwealth of the Northern 

18 Mariana Islands in an amount equal to the loss 

19 to that possession by reason of section 45U of 

20 the Internal Revenue Code of 1986. Such 

21 amount shall be determined by the Secretary of 

22 the Treasury based on information provided by 

23 the government of the respective possession. 

24 (B) OTHER POSSESSIONS.—The Secretary 

25 of the Treasury shall make annual payments to 


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1 the Commonwealth of Puerto Rico and Amer2 ican Samoa in an amount estimated by the Sec3 retary of the Treasury as being equal to the ag4 gregate benefits that would have been provided 

5 to residents of each such possession by reason 

6 of section 45U of such Code if a mirror code 

7 tax system had been in effect in such posses8 sion. The preceding sentence shall not apply 

9 with respect to any possession of the United 

10 States unless such possession has a plan, which 

11 has been approved by the Secretary of the 

12 Treasury, under which such possession will 

13 promptly distribute such payment to the resi14 dents of such possession. 

15 (2) COORDINATION WITH CREDIT ALLOWED

16 AGAINST UNITED STATES INCOME TAXES.—No cred17 it shall be allowed against United States income 

18 taxes under section 45U of such Code to any per19 son— 

20 (A) to whom a credit is allowed against 

21 taxes imposed by the possession by reason of 

22 such section, or 

23 (B) who is eligible for a payment under a 

24 plan described in paragraph (1)(B). 


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1 (3) TREATMENT OF PAYMENTS.—For purposes 

2 of section 1324(b)(2) of title 31, United States 

3 Code, the payments under this section shall be treat4 ed in the same manner as a refund due from sec5 tions referred to in such section 1324(b)(2). 

6 SEC. 3. DENIAL OF DEDUCTION FOR OUTSOURCING EX7 PENSES. 

8 (a) IN GENERAL.—Part IX of subchapter B of chap9 ter 1 of the Internal Revenue Code of 1986 is amended 

10 by adding at the end the following new section: 

11 ‘‘SEC. 280I. OUTSOURCING EXPENSES. 

12 ‘‘(a) IN GENERAL.—No deduction otherwise allow13 able under this chapter shall be allowed for any specified 

14 outsourcing expense. 

15 ‘‘(b) SPECIFIED OUTSOURCING EXPENSE.—For pur16 poses of this section— 

17 ‘‘(1) IN GENERAL.—The term ‘specified out18 sourcing expense’ means— 

19 ‘‘(A) any eligible expense paid or incurred 

20 by the taxpayer in connection with the elimi21 nation of any business unit of the taxpayer (or 

22 of any member of any expanded affiliated group 

23 in which the taxpayer is also a member) located 

24 within the United States, and 


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1 ‘‘(B) any eligible expense paid or incurred 

2 by the taxpayer in connection with the estab3 lishment of any business unit of the taxpayer 

4 (or of any member of any expanded affiliated 

5 group in which the taxpayer is also a member) 

6 located outside the United States, 

7 if such establishment constitutes the relocation of 

8 business unit so eliminated. For purposes of the pre9 ceding sentence, a relocation shall not be treated as 

10 failing to occur merely because such elimination oc11 curs in a different taxable year than such establish12 ment. 

13 ‘‘(2) APPLICATION OF CERTAIN DEFINITIONS

14 AND RULES.— 

15 ‘‘(A) DEFINITIONS.—For purposes of this 

16 section, the terms ‘eligible expenses’, ‘business 

17 unit’, and ‘expanded affiliated group’ shall have 

18 the respective meanings given such terms by 

19 section 45U(b). 

20 ‘‘(B) OPERATING EXPENSES NOT TAKEN

21 INTO ACCOUNT.—A rule similar to the rule of 

22 section 45U(b)(6) shall apply for purposes of 

23 this section. 

24 ‘‘(c) SPECIAL RULES.— 


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1 ‘‘(1) APPLICATION TO DEDUCTIONS FOR DE2 PRECIATION AND AMORTIZATION.—In the case of 

3 any portion of a specified outsourcing expense which 

4 is not deductible in the taxable year in which paid 

5 or incurred, such portion shall neither be chargeable 

6 to capital account nor amortizable. 

7 ‘‘(2) POSSESSIONS TREATED AS PART OF THE

8 UNITED STATES.—For purposes of this section, the 

9 term ‘United States’ shall be treated as including 

10 each possession of the United States (including the 

11 Commonwealth of Puerto Rico and the Common12 wealth of the Northern Mariana Islands). 

13 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

14 such regulations or other guidance as may be necessary 

15 or appropriate to carry out the purposes of this section, 

16 including regulations which provide (or create a rebuttable 

17 presumption) that certain establishments of business units 

18 outside the United States will be treated as relocations 

19 (based on timing or such other factors as the Secretary 

20 may provide) of business units eliminated within the 

21 United States.’’. 

22 (b) LIMITATION ON SUBPART F INCOME OF CON23 TROLLED FOREIGN CORPORATIONS DETERMINED WITH24 OUT REGARD TO SPECIFIED OUTSOURCING EXPENSES.— 


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1 Section 952(c) of such Code is amended by adding at the 

2 end the following new paragraph: 

3 ‘‘(4) EARNINGS AND PROFITS DETERMINED

4 WITHOUT REGARD TO SPECIFIED OUTSOURCING EX5 PENSES.—For purposes of this subsection, earnings 

6 and profits of any controlled foreign corporation 

7 shall be determined without regard to any specified 

8 outsourcing expense (as defined in section 

9 280I(b)).’’. 

10 (c) CLERICAL AMENDMENT.—The table of sections 

11 for part IX of subchapter B of chapter 1 of such Code 

12 is amended by adding at the end the following new item: 

‘‘Sec. 280I. Outsourcing expenses.’’. 

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

14 this section shall apply to amounts paid or incurred after 

15 the date of the enactment of this Act. 

16 SEC. 4. REINSTATEMENT OF DEDUCTION FOR MOVING EX17 PENSES. 

18 (a) IN GENERAL.—Section 217 of the Internal Rev19 enue Code of 1986 is amended by striking subsection (k). 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to taxable years ending after the 

22 date of the enactment of this Act. 

Æ 


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