II 

117TH CONGRESS 

1ST SESSION S. 2680 

To amend the Internal Revenue Code of 1986 to impose a tax on real 

profits of certain corporations. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 9, 2021 

Ms. WARREN (for herself, Mr. KING, Mr. MERKLEY, Mr. MARKEY, and Mr. 

WHITEHOUSE) 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 impose 

a tax on real profits of certain corporations. 

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 ‘‘Real Corporate Profits 

5 Tax Act of 2021’’. 

6 SEC. 2. IMPOSITION OF ADDITIONAL TAX ON REAL COR7 PORATE PROFITS. 

8 (a) IMPOSITION OF TAX.— 


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1 (1) IN GENERAL.—Subtitle A of the Internal 

2 Revenue Code of 1986 is amended by adding at the 

3 end the following new chapter: 

4 ‘‘CHAPTER 4A—TAX ON CORPORATE BOOK 

5 INCOME 

‘‘Sec. 1476. Tax on book income. 

‘‘Sec. 1477. Credit for income taxes paid. 

6 ‘‘SEC. 1476. TAX ON BOOK INCOME. 

7 ‘‘(a) IN GENERAL.—In addition to any other tax, in 

8 the case of a corporation, there is imposed a tax for each 

9 taxable year on so much of the adjusted net book income 

10 of the corporation as exceeds $100,000,000. 

11 ‘‘(b) AMOUNT OF TAX.—The amount of tax imposed 

12 under subsection (a) shall be 7 percent. 

13 ‘‘(c) ADJUSTED NET BOOK INCOME.—For purposes 

14 of this section— 

15 ‘‘(1) IN GENERAL.—The term ‘adjusted net 

16 book income’ means the net income or loss of the 

17 taxpayer set forth on the taxpayer’s applicable finan18 cial statement as required to be reported (or as 

19 would have been properly reported if the taxpayer 

20 were so required) on the taxpayer’s financial state21 ment net income or loss reconciliation for the fiscal 

22 year ending with or within such taxable year, deter23 mined without regard to the tax imposed by this sec24 tion and adjusted as provided in this subsection. 


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1 ‘‘(2) GROUP OF ENTITIES.—For purposes of 

2 this subsection— 

3 ‘‘(A) if the financial results of a taxpayer 

4 are reported on the applicable financial state5 ment for a group of entities, such statement 

6 shall be treated as the applicable financial 

7 statement of the taxpayer, and 

8 ‘‘(B) if the taxpayer files a consolidated re9 turn for any taxable year, adjusted net book in10 come for such taxable year shall take into ac11 count items on the taxpayer’s applicable finan12 cial statement which are properly allocable to 

13 members of such group included on such re14 turn. 

15 ‘‘(3) APPLICABLE FINANCIAL STATEMENT.— 

16 For purposes of this subsection, the term ‘applicable 

17 financial statement’ has the meaning given such 

18 term under section 451(b)(3). 

19 ‘‘(d) EXCEPTION.—Subsection (a) shall not apply to 

20 a corporation subject to the tax imposed under subchapter 

21 M (relating to regulated investment companies and real 

22 estate investment trusts). 

23 ‘‘(e) APPLICATION TO FOREIGN CORPORATIONS.—In 

24 the case of a foreign corporation, the tax imposed by sub25 section (a) shall apply only to those items on the taxVerDate Sep 11 2014 04:26 Aug 10, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2680.IS S2680

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1 payer’s applicable financial statement as are properly allo2 cable to the income of the taxpayer which is effectively 

3 connected with the conduct of a trade or business within 

4 the United States (as determined under rules similar to 

5 the rules in section 882). 

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

7 such regulations and guidance as necessary to carry out 

8 the purposes of this section, including regulations and 

9 guidance related to the application of this section to con10 solidated financial statements. 

11 ‘‘SEC. 1477. CREDIT FOR INCOME TAXES PAID. 

12 ‘‘(a) IN GENERAL.—In the case of a taxpayer other 

13 than an S corporation, there shall be allowed a credit 

14 against the tax imposed by section 1476 for any taxable 

15 year an amount equal to 33 percent of so much of the 

16 taxpayer’s net regular tax liability for the taxable year as 

17 exceeds the product of— 

18 ‘‘(1) the highest rate of tax specified in section 

19 11, and 

20 ‘‘(2) the dollar amount described in section 

21 1476(a). 

22 ‘‘(b) NET REGULAR TAX LIABILITY.—For purposes 

23 of this section, the term ‘net regular tax liability’ means 

24 the regular tax liability imposed under chapter 1 reduced 


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1 by the sum of the credits allowable under subparts A, B 

2 and D of part IV of subchapter A of chapter 1.’’. 

3 (2) CLERICAL AMENDMENT.—The table of 

4 chapter for the Internal Revenue Code of 1986 is 

5 amended to read as follows: 

‘‘CHAPTER 4A—TAX ON CORPORATE BOOK INCOME’’. 

6 (b) DENIAL OF INCOME TAX DEDUCTION.—Section 

7 275(a)(1) of the Internal Revenue Code of 1986 is amend8 ed by striking ‘‘and’’ at the end of paragraph (2), by strik9 ing the period at the end of paragraph (3) and inserting 

10 ‘‘; and’’, and by adding at the end the following new para11 graph: 

12 ‘‘(4) the tax imposed by chapter 4A.’’. 

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

14 this section shall apply to taxable years beginning after 

15 the date of the enactment of this Act. 

Æ 


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