II 

112TH CONGRESS 

2D SESSION S. 2884 

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

IN THE SENATE OF THE UNITED STATES 

MAY 8, 2012 

Ms. STABENOW (for herself, Mr. WHITEHOUSE, and Mr. BROWN of Ohio) 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 

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

10 section: 


jbell on DSK7SPTVN1PROD with BILLS
2 

•S 2884 IS

1 ‘‘SEC. 45S. 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 Mar 15 2010 02:55 May 15, 2012 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2884.IS S2884

jbell on DSK7SPTVN1PROD with BILLS
3 

•S 2884 IS

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 


jbell on DSK7SPTVN1PROD with BILLS
4 

•S 2884 IS

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 to carry out the relocation described in 

13 paragraph (1). 

14 ‘‘(6) OPERATING EXPENSES NOT TAKEN INTO

15 ACCOUNT.—Any amount paid or incurred in connec16 tion with the on-going operation of a business unit 

17 shall not be treated as an amount paid or incurred 

18 in connection with the establishment or elimination 

19 of such business unit. 

20 ‘‘(c) INCREASED DOMESTIC EMPLOYMENT REQUIRE21 MENT.—No credit shall be allowed under this section un22 less the number of full-time equivalent employees of the 

23 taxpayer for the taxable year for which the credit is 

24 claimed exceeds the number of full-time equivalent em25 ployees of the taxpayer for the last taxable year ending 


jbell on DSK7SPTVN1PROD with BILLS
5 

•S 2884 IS

1 before the first taxable year in which such eligible 

2 insourcing expenses were paid or incurred. For purposes 

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

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

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

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

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

8 purposes of this subsection. 

9 ‘‘(d) CREDIT ALLOWED UPON COMPLETION OF

10 INSOURCING PLAN.— 

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), eligible insourcing expenses shall be taken 

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

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

15 has been completed and all eligible insourcing ex16 penses pursuant to such plan have been paid or in17 curred. 

18 ‘‘(2) ELECTION TO APPLY EMPLOYMENT TEST

19 AND CLAIM CREDIT IN FIRST FULL TAXABLE YEAR

20 AFTER COMPLETION OF PLAN.—If the taxpayer 

21 elects the application of this paragraph, eligible 

22 insourcing expenses shall be taken into account 

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

24 the taxable year described in paragraph (1). 


jbell on DSK7SPTVN1PROD with BILLS
6 

•S 2884 IS

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

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

3 ‘United States’ shall be treated as including each posses4 sion of the United States (including the Commonwealth 

5 of Puerto Rico and the Commonwealth of the Northern 

6 Mariana Islands). 

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

8 such regulations or other guidance as may be necessary 

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

10 (b) CREDIT TO BE PART OF GENERAL BUSINESS

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

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

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

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

15 new paragraph: 

16 ‘‘(37) the insourcing expenses credit determined 

17 under section 45S(a).’’. 

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

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

20 of such Code is amended by adding at the end the fol21 lowing new item: 

‘‘Sec. 45S. Credit for insourcing 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. 


jbell on DSK7SPTVN1PROD with BILLS
7 

•S 2884 IS

1 (e) APPLICATION TO UNITED STATES POSSES2 SIONS.— 

3 (1) PAYMENTS TO POSSESSIONS.— 

4 (A) MIRROR CODE POSSESSIONS.—The 

5 Secretary of the Treasury shall make periodic 

6 payments to each possession of the United 

7 States with a mirror code tax system in an 

8 amount equal to the loss to that possession by 

9 reason of section 45S of the Internal Revenue 

10 Code of 1986. Such amount shall be determined 

11 by the Secretary of the Treasury based on in12 formation provided by the government of the re13 spective possession. 

14 (B) OTHER POSSESSIONS.—The Secretary 

15 of the Treasury shall make annual payments to 

16 each possession of the United States which does 

17 not have a mirror code tax system in an 

18 amount estimated by the Secretary of the 

19 Treasury as being equal to the aggregate bene20 fits that would have been provided to residents 

21 of such possession by reason of section 45S of 

22 such Code if a mirror code tax system had been 

23 in effect in such possession. The preceding sen24 tence shall not apply with respect to any posses25 sion of the United States unless such possession 


jbell on DSK7SPTVN1PROD with BILLS
8 

•S 2884 IS

1 has a plan, which has been approved by the 

2 Secretary of the Treasury, under which such 

3 possession will promptly distribute such pay4 ment to the residents of such possession. 

5 (2) COORDINATION WITH CREDIT ALLOWED

6 AGAINST UNITED STATES INCOME TAXES.—No cred7 it shall be allowed against United States income 

8 taxes under section 45S of such Code to any per9 son— 

10 (A) to whom a credit is allowed against 

11 taxes imposed by the possession by reason of 

12 such section, or 

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

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

15 (3) DEFINITIONS AND SPECIAL RULES.— 

16 (A) POSSESSIONS OF THE UNITED

17 STATES.—For purposes of this section, the 

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

19 the Commonwealth of Puerto Rico and the 

20 Commonwealth of the Northern Mariana Is21 lands. 

22 (B) MIRROR CODE TAX SYSTEM.—For pur23 poses of this section, the term ‘‘mirror code tax 

24 system’’ means, with respect to any possession 

25 of the United States, the income tax system of 


jbell on DSK7SPTVN1PROD with BILLS
9 

•S 2884 IS

1 such possession if the income tax liability of the 

2 residents of such possession under such system 

3 is determined by reference to the income tax 

4 laws of the United States as if such possession 

5 were the United States. 

6 (C) TREATMENT OF PAYMENTS.—For pur7 poses of section 1324(b)(2) of title 31, United 

8 States Code, the payments under this section 

9 shall be treated in the same manner as a refund 

10 due from sections referred to in such section 

11 1324(b)(2). 

12 SEC. 3. DENIAL OF DEDUCTION FOR OUTSOURCING EX13 PENSES. 

14 (a) IN GENERAL.—Part IX of subchapter B of chap15 ter 1 of the Internal Revenue Code of 1986 is amended 

16 by adding at the end the following new section: 

17 ‘‘SEC. 280I. OUTSOURCING EXPENSES. 

18 ‘‘(a) IN GENERAL.—No deduction otherwise allow19 able under this chapter shall be allowed for any specified 

20 outsourcing expense. 

21 ‘‘(b) SPECIFIED OUTSOURCING EXPENSE.—For pur22 poses of this section— 

23 ‘‘(1) IN GENERAL.—The term ‘specified out24 sourcing expense’ means— 


jbell on DSK7SPTVN1PROD with BILLS
10 

•S 2884 IS

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

2 by the taxpayer in connection with the elimi3 nation of any business unit of the taxpayer (or 

4 of any member of any expanded affiliated group 

5 in which the taxpayer is also a member) located 

6 within the United States, and 

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

8 by the taxpayer in connection with the estab9 lishment of any business unit of the taxpayer 

10 (or of any member of any expanded affiliated 

11 group in which the taxpayer is also a member) 

12 located outside the United States, 

13 if such establishment constitutes the relocation of 

14 business unit so eliminated. For purposes of the pre15 ceding sentence, a relocation shall not be treated as 

16 failing to occur merely because such elimination oc17 curs in a different taxable year than such establish18 ment. 

19 ‘‘(2) APPLICATION OF CERTAIN DEFINITIONS

20 AND RULES.— 

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

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

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

24 the respective meanings given such terms by 

25 section 45S(b). 


jbell on DSK7SPTVN1PROD with BILLS
11 

•S 2884 IS

1 ‘‘(B) OPERATING EXPENSES NOT TAKEN

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

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

4 this section. 

5 ‘‘(c) SPECIAL RULES.— 

6 ‘‘(1) APPLICATION TO DEDUCTIONS FOR DE7 PRECIATION AND AMORTIZATION.—In the case of 

8 any portion of a specified outsourcing expense which 

9 is not deductible in the taxable year in which paid 

10 or incurred, such portion shall neither be chargeable 

11 to capital account nor amortizable. 

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

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

14 term ‘United States’ shall be treated as including 

15 each possession of the United States (including the 

16 Commonwealth of Puerto Rico and the Common17 wealth of the Northern Mariana Islands). 

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

19 such regulations or other guidance as may be necessary 

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

21 including regulations which provide (or create a rebuttable 

22 presumption) that certain establishments of business units 

23 outside the United States will be treated as relocations 

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


jbell on DSK7SPTVN1PROD with BILLS
12 

•S 2884 IS

1 may provide) of business units eliminated within the 

2 United States.’’. 

3 (b) LIMITATION ON SUBPART F INCOME OF CON4 TROLLED FOREIGN CORPORATIONS DETERMINED WITH5 OUT REGARD TO SPECIFIED OUTSOURCING EXPENSES.— 

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

7 by adding at the end the following new paragraph: 

8 ‘‘(4) EARNINGS AND PROFITS DETERMINED

9 WITHOUT REGARD TO SPECIFIED OUTSOURCING EX10 PENSES.—For purposes of this subsection, earnings 

11 and profits of any controlled foreign corporation 

12 shall be determined without regard to any specified 

13 outsourcing expense (as defined in section 

14 280I(b)).’’. 

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

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

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

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

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

19 this section shall apply to amounts paid or incurred after 

20 the date of the enactment of this Act. 

Æ 


jbell on DSK7SPTVN1PROD with BILLS