I 

112TH CONGRESS 

1ST SESSION H. R. 1036 

To amend the Internal Revenue Code of 1986 to allow temporarily a reduced 

rate of tax with respect to repatriated foreign earnings. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 11, 2011 

Mr. BILBRAY 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 allow temporarily a reduced rate of tax with respect to repatriated 

foreign earnings. 

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 ‘‘The Job Creation and 

5 Innovation Investment Act of 2011’’. 


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1 SEC. 2. EXTENSION AND MODIFICATION OF DIVIDENDS RE2 CEIVED DEDUCTION FOR CERTAIN REPATRI3 ATED FOREIGN EARNINGS. 

4 (a) IN GENERAL.—Subsection (f) of section 965 of 

5 the Internal Revenue Code of 1986 is amended to read 

6 as follows: 

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

8 this section to— 

9 ‘‘(1) the taxpayer’s last taxable year which be10 gins before the date of the enactment of the Rein11 vest in America Act of 2011, or 

12 ‘‘(2) the taxpayer’s first taxable year which be13 gins during the 1-year period beginning on such 

14 date. 

15 Such election may be made for a taxable year only if made 

16 on or before the due date (including extensions) for filing 

17 the return of tax for such taxable year.’’. 

18 (b) ELIMINATION OF LIMITATION.—Subsection (b) of 

19 section 965 of such Code is amended by striking para20 graph (1). 

21 (c) MODIFICATION OF INVESTMENT REQUIRE22 MENT.—Paragraph (4) of section 965(b) of the Internal 

23 Revenue Code of 1986 is amended to read as follows: 

24 ‘‘(4) SPECIAL RULE FOR INVESTMENT IN

25 UNITED STATES PURSUANT TO QUALIFIED DOMES26 TIC REINVESTMENT PLAN.— 


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1 ‘‘(A) IN GENERAL.—In the case of any div2 idend (or portion thereof)— 

3 ‘‘(i) with respect to which the tax4 payer elects the application of this para5 graph, and 

6 ‘‘(ii) which is reinvested in the United 

7 States pursuant to a qualified domestic re8 investment plan, 

9 subsection (a)(1) shall be applied by sub10 stituting ‘100 percent’ for ‘85 percent’. 

11 ‘‘(B) QUALIFIED DOMESTIC REINVEST12 MENT PLAN.—For purposes of this para13 graph— 

14 ‘‘(i) IN GENERAL.—The term ‘quali15 fied domestic reinvestment plan’ means a 

16 plan which— 

17 ‘‘(I) is approved by the tax18 payer’s president, chief executive offi19 cer, or comparable official before the 

20 payment of such dividend and subse21 quently approved by the taxpayer’s 

22 board of directors, management com23 mittee, executive committee, or similar 

24 body, and 


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1 ‘‘(II) provides for the reinvest2 ment of such dividend (or portion 

3 thereof) in the United States, not 

4 later than 3 years after the payment 

5 of such dividend, as a source funding 

6 for research and development ex7 penses, expansion of facilities, proof of 

8 concept centers, early stage venture 

9 capital investment (including original 

10 investment), or manufacturing start11 up costs (including plant, equipment, 

12 infrastructure, and contract manufac13 turing). 

14 ‘‘(ii) PROOF OF CONCEPT CENTER.— 

15 The term ‘proof of concept center’ includes 

16 activities within public and private institu17 tions and universities, which advance in18 ventions by assessing and validating com19 mercial feasibility of products or processes, 

20 including prototype development.’’. 

21 (d) THRESHOLD PERIOD.—Section 965 of such Code 

22 is amended by striking ‘‘June 30, 2003’’ each place it oc23 curs and inserting ‘‘June 30, 2010’’. 

24 (e) INDEBTEDNESS DETERMINATION DATE.—Sub25 paragraph (B) of section 965(b)(3) of such Code is 


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1 amended by striking ‘‘October 3, 2004’’ and inserting 

2 ‘‘February 1, 2011’’. 

3 (f) CONFORMING AMENDMENTS.— 

4 (1) Subparagraphs (A)(ii)(I) and (C)(ii)(II) of 

5 section 965(c)(2) of such Code are each amended by 

6 striking ‘‘(b)(2)(B)’’ and inserting ‘‘(b)(1)(B)’’. 

7 (2) Subclause (II) of section 965(c)(2)(C)(ii) of 

8 such Code is amended by striking ‘‘(b)(2)’’ and in9 serting ‘‘(b)(1)’’. 

10 (3) Paragraph (5) of section 965(c) of such 

11 Code is amended— 

12 (A) by striking subparagraphs (B) and 

13 (C), and 

14 (B) by striking ‘‘(5) CONTROLLED

15 GROUPS’’ and all that follows through ‘‘All 

16 United States shareholders’’ and inserting the 

17 following: 

18 ‘‘(5) CONTROLLED GROUPS.—All United States 

19 shareholders’’. 

20 (g) EFFECTIVE DATE.—The amendments 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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