II 

114TH CONGRESS 

1ST SESSION S. 1737 

To provide an incentive for businesses to bring jobs back to America. 

IN THE SENATE OF THE UNITED STATES 

JULY 9, 2015 

Ms. STABENOW (for herself, Mr. SCHUMER, Mr. WHITEHOUSE, Ms. WARREN, 

Mr. UDALL, Ms. BALDWIN, Mrs. SHAHEEN, Mr. FRANKEN, Mr. REED, 

Mr. MERKLEY, Mr. BLUMENTHAL, Mr. MARKEY, Ms. KLOBUCHAR, Mr. 

CARDIN, and Mr. PETERS) introduced the following bill; which was read 

twice and referred to the Committee on Finance 

A BILL 

To provide an incentive for businesses to bring jobs back 

to America. 

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 


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1 1986 is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 45S. CREDIT FOR INSOURCING EXPENSES. 

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

5 insourcing expenses credit for any taxable year is an 

6 amount equal to 20 percent of the eligible insourcing ex7 penses of the taxpayer which are taken into account in 

8 such taxable year under subsection (d). 

9 ‘‘(b) ELIGIBLE INSOURCING EXPENSES.—For pur10 poses of this section— 

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

12 insourcing expenses’ means— 

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

14 the taxpayer in connection with the elimination 

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

16 member of any expanded affiliated group in 

17 which the taxpayer is also a member) located 

18 outside the United States, and 

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

20 the taxpayer in connection with the establish21 ment 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, 


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1 if such establishment constitutes the relocation of 

2 the business unit so eliminated. For purposes of the 

3 preceding sentence, a relocation shall not be treated 

4 as failing to occur merely because such elimination 

5 occurs in a different taxable year than such estab6 lishment. 

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

8 expenses’ means— 

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

10 allowed to the taxpayer under section 162, and 

11 ‘‘(B) permit and license fees, lease broker12 age fees, equipment installation costs, and, to 

13 the extent provided by the Secretary, other 

14 similar expenses. 

15 Such term does not include any compensation which 

16 is paid or incurred in connection with severance 

17 from employment and, to the extent provided by the 

18 Secretary, any similar amount. 

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

20 means— 

21 ‘‘(A) any trade or business, and 

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

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

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

25 term ‘expanded affiliated group’ means an affiliated 


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

2 without regard to section 1504(b)(3) and by sub3 stituting ‘more than 50 percent’ for ‘at least 80 per4 cent’ each place it appears in section 1504(a). A 

5 partnership or any other entity (other than a cor6 poration) shall be treated as a member of an ex7 panded affiliated group if such entity is controlled 

8 (within the meaning of section 954(d)(3)) by mem9 bers of such group (including any entity treated as 

10 a member of such group by reason of this para11 graph). 

12 ‘‘(5) EXPENSES MUST BE PURSUANT TO

13 INSOURCING PLAN.—Amounts shall be taken into ac14 count under paragraph (1) only to the extent that 

15 such amounts are paid or incurred pursuant to a 

16 written plan to carry out the relocation described in 

17 paragraph (1). 

18 ‘‘(6) OPERATING EXPENSES NOT TAKEN INTO

19 ACCOUNT.—Any amount paid or incurred in connec20 tion with the on-going operation of a business unit 

21 shall not be treated as an amount paid or incurred 

22 in connection with the establishment or elimination 

23 of such business unit. 

24 ‘‘(c) INCREASED DOMESTIC EMPLOYMENT REQUIRE25 MENT.—No credit shall be allowed under this section unVerDate Sep 11 2014 00:58 Jul 11, 2015 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1737.IS S1737

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1 less the number of full-time equivalent employees of the 

2 taxpayer for the taxable year for which the credit is 

3 claimed exceeds the number of full-time equivalent em4 ployees of the taxpayer for the last taxable year ending 

5 before the first taxable year in which such eligible 

6 insourcing expenses were paid or incurred. For purposes 

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

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

9 applicable rules of section 45R(e)). All employers treated 

10 as a single employer under subsection (b), (c), (m), or (o) 

11 of section 414 shall be treated as a single employer for 

12 purposes of this subsection. 

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.—Subsection (b) of section 38 of such Code is 

15 amended by striking ‘‘plus’’ at the end of paragraph (35), 

16 by striking the period at the end of paragraph (36) and 

17 inserting ‘‘, plus’’, and by adding at the end the following 

18 new paragraph: 

19 ‘‘(37) the insourcing expenses credit determined 

20 under section 45S(a).’’. 

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

22 for subpart D of part IV of subchapter A of chapter 1 

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

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


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

2 this section shall apply to amounts paid or incurred after 

3 the date of the enactment of this Act. 

4 (e) APPLICATION TO UNITED STATES POSSES5 SIONS.— 

6 (1) PAYMENTS TO POSSESSIONS.— 

7 (A) MIRROR CODE POSSESSIONS.—The 

8 Secretary of the Treasury shall make periodic 

9 payments to each possession of the United 

10 States with a mirror code tax system in an 

11 amount equal to the loss to that possession by 

12 reason of section 45S of the Internal Revenue 

13 Code of 1986. Such amount shall be determined 

14 by the Secretary of the Treasury based on in15 formation provided by the government of the re16 spective possession. 

17 (B) OTHER POSSESSIONS.—The Secretary 

18 of the Treasury shall make annual payments to 

19 each possession of the United States which does 

20 not have a mirror code tax system in an 

21 amount estimated by the Secretary of the 

22 Treasury as being equal to the aggregate bene23 fits that would have been provided to residents 

24 of such possession by reason of section 45S of 

25 such Code if a mirror code tax system had been 


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1 in effect in such possession. The preceding sen2 tence shall not apply with respect to any posses3 sion of the United States unless such possession 

4 has a plan, which has been approved by the 

5 Secretary of the Treasury, under which such 

6 possession will promptly distribute such pay7 ment to the residents of such possession. 

8 (2) COORDINATION WITH CREDIT ALLOWED

9 AGAINST UNITED STATES INCOME TAXES.—No cred10 it shall be allowed against United States income 

11 taxes under section 45S of such Code to any per12 son— 

13 (A) to whom a credit is allowed against 

14 taxes imposed by the possession by reason of 

15 such section, or 

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

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

18 (3) DEFINITIONS AND SPECIAL RULES.— 

19 (A) POSSESSIONS OF THE UNITED

20 STATES.—For purposes of this section, the 

21 term ‘‘possession of the United States’’ includes 

22 the Commonwealth of Puerto Rico and the 

23 Commonwealth of the Northern Mariana Is24 lands. 


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1 (B) MIRROR CODE TAX SYSTEM.—For pur2 poses of this section, the term ‘‘mirror code tax 

3 system’’ means, with respect to any possession 

4 of the United States, the income tax system of 

5 such possession if the income tax liability of the 

6 residents of such possession under such system 

7 is determined by reference to the income tax 

8 laws of the United States as if such possession 

9 were the United States. 

10 (C) TREATMENT OF PAYMENTS.—For pur11 poses of section 1324(b)(2) of title 31, United 

12 States Code, the payments under this section 

13 shall be treated in the same manner as a refund 

14 due from sections referred to in such section 

15 1324(b)(2). 

16 SEC. 3. DENIAL OF DEDUCTION FOR OUTSOURCING EX17 PENSES. 

18 (a) IN GENERAL.—Part IX of subchapter B of chap19 ter 1 of the Internal Revenue Code of 1986 is amended 

20 by adding at the end the following new section: 

21 ‘‘SEC. 280I. OUTSOURCING EXPENSES. 

22 ‘‘(a) IN GENERAL.—No deduction otherwise allow23 able under this chapter shall be allowed for any specified 

24 outsourcing expense. 


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1 ‘‘(b) SPECIFIED OUTSOURCING EXPENSE.—For pur2 poses of this section— 

3 ‘‘(1) IN GENERAL.—The term ‘specified out4 sourcing expense’ means— 

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

6 by the taxpayer in connection with the elimi7 nation of any business unit of the taxpayer (or 

8 of any member of any expanded affiliated group 

9 in which the taxpayer is also a member) located 

10 within the United States, and 

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

12 by the taxpayer in connection with the estab13 lishment of any business unit of the taxpayer 

14 (or of any member of any expanded affiliated 

15 group in which the taxpayer is also a member) 

16 located outside the United States, 

17 if such establishment constitutes the relocation of 

18 the business unit so eliminated. For purposes of the 

19 preceding sentence, a relocation shall not be treated 

20 as failing to occur merely because such elimination 

21 occurs in a different taxable year than such estab22 lishment. 

23 ‘‘(2) APPLICATION OF CERTAIN DEFINITIONS

24 AND RULES.— 


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

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

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

4 the respective meanings given such terms by 

5 section 45S(b). 

6 ‘‘(B) OPERATING EXPENSES NOT TAKEN

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

8 section 45S(b)(6) shall apply for purposes of 

9 this section. 

10 ‘‘(c) SPECIAL RULES.— 

11 ‘‘(1) APPLICATION TO DEDUCTIONS FOR DE12 PRECIATION AND AMORTIZATION.—In the case of 

13 any portion of a specified outsourcing expense which 

14 is not deductible in the taxable year in which paid 

15 or incurred, such portion shall neither be chargeable 

16 to capital account nor amortizable. 

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

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

19 term ‘United States’ shall be treated as including 

20 each possession of the United States (including the 

21 Commonwealth of Puerto Rico and the Common22 wealth of the Northern Mariana Islands). 

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

24 such regulations or other guidance as may be necessary 

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


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1 including regulations which provide (or create a rebuttable 

2 presumption) that certain establishments of business units 

3 outside the United States will be treated as relocations 

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

5 may provide) of business units eliminated within the 

6 United States.’’. 

7 (b) LIMITATION ON SUBPART F INCOME OF CON8 TROLLED FOREIGN CORPORATIONS DETERMINED WITH9 OUT REGARD TO SPECIFIED OUTSOURCING EXPENSES.— 

10 Subsection (c) of section 952 of such Code is amended 

11 by adding at the end the following new paragraph: 

12 ‘‘(4) EARNINGS AND PROFITS DETERMINED

13 WITHOUT REGARD TO SPECIFIED OUTSOURCING EX14 PENSES.—For purposes of this subsection, earnings 

15 and profits of any controlled foreign corporation 

16 shall be determined without regard to any specified 

17 outsourcing expense (as defined in section 

18 280I(b)).’’. 

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

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

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

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

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

23 this section shall apply to amounts paid or incurred after 

24 the date of the enactment of this Act. 

Æ 


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