II 

Calendar No. 451 

113TH CONGRESS 

2D SESSION S. 2562 

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

IN THE SENATE OF THE UNITED STATES 

JUNE 26, 2014 

Ms. STABENOW (for herself, Mr. WALSH, Mr. WARNER, Mr. PRYOR, Mr. 

UDALL of Colorado, Mr. UDALL of New Mexico, Mrs. SHAHEEN, Mrs. 

HAGAN, Mr. COONS, Mr. REED, Mr. DURBIN, Mr. MERKLEY, Mr. 

FRANKEN, Mr. MARKEY, Mr. ROCKEFELLER, Mr. WHITEHOUSE, Ms. 

BALDWIN, Mr. BLUMENTHAL, Ms. KLOBUCHAR, Mrs. MCCASKILL, Mr. 

SCHATZ, and Mr. SCHUMER) introduced the following bill; which was read 

the first time 

JULY 7, 2014 

Read the second time and placed on the calendar 

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’’. 


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1 SEC. 2. CREDIT FOR INSOURCING EXPENSES. 

2 (a) IN GENERAL.—Subpart D of part IV of sub3 chapter A of chapter 1 of the Internal Revenue Code of 

4 1986 is amended by adding at the end the following new 

5 section: 

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

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

8 insourcing expenses credit for any taxable year is an 

9 amount equal to 20 percent of the eligible insourcing ex10 penses of the taxpayer which are taken into account in 

11 such taxable year under subsection (d). 

12 ‘‘(b) ELIGIBLE INSOURCING EXPENSES.—For pur13 poses of this section— 

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

15 insourcing expenses’ means— 

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

17 the taxpayer in connection with the elimination 

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

19 member of any expanded affiliated group in 

20 which the taxpayer is also a member) located 

21 outside the United States, and 

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

23 the taxpayer in connection with the establish24 ment of any business unit of the taxpayer (or 

25 of any member of any expanded affiliated group 


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1 in which the taxpayer is also a member) located 

2 within the United States, 

3 if such establishment constitutes the relocation of 

4 the business unit so eliminated. For purposes of the 

5 preceding sentence, a relocation shall not be treated 

6 as failing to occur merely because such elimination 

7 occurs in a different taxable year than such estab8 lishment. 

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

10 expenses’ means— 

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

12 allowed to the taxpayer under section 162, and 

13 ‘‘(B) permit and license fees, lease broker14 age fees, equipment installation costs, and, to 

15 the extent provided by the Secretary, other 

16 similar expenses. 

17 Such term does not include any compensation which 

18 is paid or incurred in connection with severance 

19 from employment and, to the extent provided by the 

20 Secretary, any similar amount. 

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

22 means— 

23 ‘‘(A) any trade or business, and 

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

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


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

2 term ‘expanded affiliated group’ means an affiliated 

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

4 without regard to section 1504(b)(3) and by sub5 stituting ‘more than 50 percent’ for ‘at least 80 per6 cent’ each place it appears in section 1504(a). A 

7 partnership or any other entity (other than a cor8 poration) shall be treated as a member of an ex9 panded affiliated group if such entity is controlled 

10 (within the meaning of section 954(d)(3)) by mem11 bers of such group (including any entity treated as 

12 a member of such group by reason of this para13 graph). 

14 ‘‘(5) EXPENSES MUST BE PURSUANT TO

15 INSOURCING PLAN.—Amounts shall be taken into ac16 count under paragraph (1) only to the extent that 

17 such amounts are paid or incurred pursuant to a 

18 written plan to carry out the relocation described in 

19 paragraph (1). 

20 ‘‘(6) OPERATING EXPENSES NOT TAKEN INTO

21 ACCOUNT.—Any amount paid or incurred in connec22 tion with the on-going operation of a business unit 

23 shall not be treated as an amount paid or incurred 

24 in connection with the establishment or elimination 

25 of such business unit. 


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1 ‘‘(c) INCREASED DOMESTIC EMPLOYMENT REQUIRE2 MENT.—No credit shall be allowed under this section un3 less the number of full-time equivalent employees of the 

4 taxpayer for the taxable year for which the credit is 

5 claimed exceeds the number of full-time equivalent em6 ployees of the taxpayer for the last taxable year ending 

7 before the first taxable year in which such eligible 

8 insourcing expenses were paid or incurred. For purposes 

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

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

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

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

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

14 purposes of this subsection. 

15 ‘‘(d) CREDIT ALLOWED UPON COMPLETION OF

16 INSOURCING PLAN.— 

17 ‘‘(1) IN GENERAL.—Except as provided in para18 graph (2), eligible insourcing expenses shall be taken 

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

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

21 has been completed and all eligible insourcing ex22 penses pursuant to such plan have been paid or in23 curred. 

24 ‘‘(2) ELECTION TO APPLY EMPLOYMENT TEST

25 AND CLAIM CREDIT IN FIRST FULL TAXABLE YEAR


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1 AFTER COMPLETION OF PLAN.—If the taxpayer 

2 elects the application of this paragraph, eligible 

3 insourcing expenses shall be taken into account 

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

5 the taxable year described in paragraph (1). 

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

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

8 ‘United States’ shall be treated as including each posses9 sion of the United States (including the Commonwealth 

10 of Puerto Rico and the Commonwealth of the Northern 

11 Mariana Islands). 

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

13 such regulations or other guidance as may be necessary 

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

15 (b) CREDIT TO BE PART OF GENERAL BUSINESS

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

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

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

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

20 new paragraph: 

21 ‘‘(37) the insourcing expenses credit determined 

22 under section 45S(a).’’. 

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

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


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1 of such Code is amended by adding at the end the fol2 lowing new item: 

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

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

4 this section shall apply to amounts paid or incurred after 

5 the date of the enactment of this Act. 

6 (e) APPLICATION TO UNITED STATES POSSES7 SIONS.— 

8 (1) PAYMENTS TO POSSESSIONS.— 

9 (A) MIRROR CODE POSSESSIONS.—The 

10 Secretary of the Treasury shall make periodic 

11 payments to each possession of the United 

12 States with a mirror code tax system in an 

13 amount equal to the loss to that possession by 

14 reason of section 45S of the Internal Revenue 

15 Code of 1986. Such amount shall be determined 

16 by the Secretary of the Treasury based on in17 formation provided by the government of the re18 spective possession. 

19 (B) OTHER POSSESSIONS.—The Secretary 

20 of the Treasury shall make annual payments to 

21 each possession of the United States which does 

22 not have a mirror code tax system in an 

23 amount estimated by the Secretary of the 

24 Treasury as being equal to the aggregate bene25 fits that would have been provided to residents 


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1 of such possession by reason of section 45S of 

2 such Code if a mirror code tax system had been 

3 in effect in such possession. The preceding sen4 tence shall not apply with respect to any posses5 sion of the United States unless such possession 

6 has a plan, which has been approved by the 

7 Secretary of the Treasury, under which such 

8 possession will promptly distribute such pay9 ment to the residents of such possession. 

10 (2) COORDINATION WITH CREDIT ALLOWED

11 AGAINST UNITED STATES INCOME TAXES.—No cred12 it shall be allowed against United States income 

13 taxes under section 45S of such Code to any per14 son— 

15 (A) to whom a credit is allowed against 

16 taxes imposed by the possession by reason of 

17 such section, or 

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

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

20 (3) DEFINITIONS AND SPECIAL RULES.— 

21 (A) POSSESSIONS OF THE UNITED

22 STATES.—For purposes of this section, the 

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

24 the Commonwealth of Puerto Rico and the 


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1 Commonwealth of the Northern Mariana Is2 lands. 

3 (B) MIRROR CODE TAX SYSTEM.—For pur4 poses of this section, the term ‘‘mirror code tax 

5 system’’ means, with respect to any possession 

6 of the United States, the income tax system of 

7 such possession if the income tax liability of the 

8 residents of such possession under such system 

9 is determined by reference to the income tax 

10 laws of the United States as if such possession 

11 were the United States. 

12 (C) TREATMENT OF PAYMENTS.—For pur13 poses of section 1324(b)(2) of title 31, United 

14 States Code, the payments under this section 

15 shall be treated in the same manner as a refund 

16 due from sections referred to in such section 

17 1324(b)(2). 

18 SEC. 3. DENIAL OF DEDUCTION FOR OUTSOURCING EX19 PENSES. 

20 (a) IN GENERAL.—Part IX of subchapter B of chap21 ter 1 of the Internal Revenue Code of 1986 is amended 

22 by adding at the end the following new section: 


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1 ‘‘SEC. 280I. OUTSOURCING EXPENSES. 

2 ‘‘(a) IN GENERAL.—No deduction otherwise allow3 able under this chapter shall be allowed for any specified 

4 outsourcing expense. 

5 ‘‘(b) SPECIFIED OUTSOURCING EXPENSE.—For pur6 poses of this section— 

7 ‘‘(1) IN GENERAL.—The term ‘specified out8 sourcing expense’ means— 

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

10 by the taxpayer in connection with the elimi11 nation of any business unit of the taxpayer (or 

12 of any member of any expanded affiliated group 

13 in which the taxpayer is also a member) located 

14 within the United States, and 

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

16 by the taxpayer in connection with the estab17 lishment of any business unit of the taxpayer 

18 (or of any member of any expanded affiliated 

19 group in which the taxpayer is also a member) 

20 located outside the United States, 

21 if such establishment constitutes the relocation of 

22 the business unit so eliminated. For purposes of the 

23 preceding sentence, a relocation shall not be treated 

24 as failing to occur merely because such elimination 

25 occurs in a different taxable year than such estab26 lishment. 


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1 ‘‘(2) APPLICATION OF CERTAIN DEFINITIONS

2 AND RULES.— 

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

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

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

6 the respective meanings given such terms by 

7 section 45S(b). 

8 ‘‘(B) OPERATING EXPENSES NOT TAKEN

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

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

11 this section. 

12 ‘‘(c) SPECIAL RULES.— 

13 ‘‘(1) APPLICATION TO DEDUCTIONS FOR DE14 PRECIATION AND AMORTIZATION.—In the case of 

15 any portion of a specified outsourcing expense which 

16 is not deductible in the taxable year in which paid 

17 or incurred, such portion shall neither be chargeable 

18 to capital account nor amortizable. 

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

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

21 term ‘United States’ shall be treated as including 

22 each possession of the United States (including the 

23 Commonwealth of Puerto Rico and the Common24 wealth of the Northern Mariana Islands). 


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

2 such regulations or other guidance as may be necessary 

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

4 including regulations which provide (or create a rebuttable 

5 presumption) that certain establishments of business units 

6 outside the United States will be treated as relocations 

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

8 may provide) of business units eliminated within the 

9 United States.’’. 

10 (b) LIMITATION ON SUBPART F INCOME OF CON11 TROLLED FOREIGN CORPORATIONS DETERMINED WITH12 OUT REGARD TO SPECIFIED OUTSOURCING EXPENSES.— 

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

14 by adding at the end the following new paragraph: 

15 ‘‘(4) EARNINGS AND PROFITS DETERMINED

16 WITHOUT REGARD TO SPECIFIED OUTSOURCING EX17 PENSES.—For purposes of this subsection, earnings 

18 and profits of any controlled foreign corporation 

19 shall be determined without regard to any specified 

20 outsourcing expense (as defined in section 

21 280I(b)).’’. 

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

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

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

‘‘Sec. 280I. Outsourcing 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. 


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Calendar No. 451 

113TH CONGRESS 

2D SESSION S. 2562 

A BILL 

To provide an incentive for businesses to bring jobs 

back to America. 

JULY 7, 2014 

Read the second time and placed on the calendar 


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