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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 981 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                 S. 981

      To amend the Internal Revenue Code of 1986 to provide for a 
 repatriation holiday, to increase funding to the Highway Trust Fund, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 16, 2015

 Mr. Paul (for himself and Mrs. Boxer) 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 provide for a 
 repatriation holiday, to increase funding to the Highway Trust Fund, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Invest In Transportation Act''.

SEC. 2. INCENTIVES TO REINVEST FOREIGN EARNINGS IN UNITED STATES.

    (a) Applicability of Temporary Dividends Received Deduction.--
            (1) In general.--Subsection (f) of section 965 of the 
        Internal Revenue Code of 1986 is amended to read as follows:
    ``(f) Election.--
            ``(1) In general.--The taxpayer may elect to apply this 
        section to the 5-taxable-year period beginning with--
                    ``(A) the taxpayer's last taxable year which begins 
                before the date of the enactment of the Invest In 
                Transportation Act, or
                    ``(B) the taxpayer's first taxable year which 
                begins during the 1-year period beginning on such date 
                of enactment.
            ``(2) Time for making election.--Any election made under 
        this section shall be made on or before the due date (including 
        extensions) for filing the return of tax for the first taxable 
        year in the 5-taxable-year period described in paragraph (1).
            ``(3) Declaration of amount repatriated.--An election under 
        this section shall designate a limitation of the aggregate 
        amount of dividends to be taken into account under subsection 
        (a) during the 5-taxable-year period.''.
            (2) Conforming amendments.--
                    (A) Determinations relating to base period for 
                determining extraordinary dividends.--Section 965 of 
                such Code is amended by striking ``June 30, 2003'' each 
                place it appears in subsections (b)(2) and (c)(2) and 
                inserting ``December 31, 2014''.
                    (B) Determinations relating to related party 
                indebtedness.--Section 965(b)(3)(B) of such Code is 
                amended by striking ``October 3, 2004'' and inserting 
                ``December 31, 2014''.
    (b) Deduction Equivalent to 6.5-Percent Rate of Tax.--Paragraph (1) 
of section 965(a) of the Internal Revenue Code of 1986 is amended by 
striking ``85 percent'' and inserting ``81.4 percent''.
    (c) Limitations.--
            (1) In general.--
                    (A) In general.--Paragraph (1) of section 965(b) of 
                the Internal Revenue Code of 1986 is amended to read as 
                follows:
            ``(1) In general.--The amount of dividends taken into 
        account under subsection (a) shall not exceed the United States 
        shareholder's pro rata share of the accumulated earnings and 
        profits described in section 959(c)(3) as of the end of the 
        last taxable year ending on or before December 31, 2014, for 
        all controlled foreign corporations of the United States 
        shareholder.''.
                    (B) Conforming amendments.--
                            (i) Subsection (c) of section 965 of such 
                        Code is amended by striking paragraph (1).
                            (ii) Paragraph (5) of section 965(c) of 
                        such Code is amended to read as follows:
            ``(5) Controlled groups.--All United States shareholders 
        which are members of an affiliated group filing a consolidated 
        return under section 1501 shall be treated as one United States 
        shareholder.''.
            (2) Additional limitation.--Subsection (b) of section 965 
        of such Code is amended by redesignating paragraph (4) as 
        paragraph (5) and by inserting after paragraph (3) the 
        following new paragraph:
            ``(4) Additional limitation.--
                    ``(A) In general.--The amount of dividends taken 
                into account under subsection (a) for each taxable year 
                during the 5-taxable-year period described in 
                subsection (f)(1) shall not exceed the amount 
                designated in the election under subsection (f)(3) 
                reduced by the sum of--
                            ``(i) the aggregate amount of dividends 
                        taken into account under subsection (a) in 
                        prior taxable years in such 5-taxable-year 
                        period, and
                            ``(ii) the sum of the dividend shortfalls 
                        for each such prior taxable year.
                    ``(B) Dividend shortfall.--For purposes of 
                subparagraph (A), the dividend shortfall for any 
                taxable year is an amount equal to the excess (if any) 
                of--
                            ``(i) 20 percent of the amount designated 
                        under subsection (f)(3), over
                            ``(ii) the amount of dividends taken into 
                        account under subsection (a) for such taxable 
                        year.''.
    (d) Dividend Reinvestment Plan Requirements.--Paragraph (5) of 
section 965(b) of the Internal Revenue Code of 1986, as redesignated by 
subsection (c), is amended to read as follows:
            ``(5) Requirement to invest in united states.--
                    ``(A) In general.--Subsection (a) shall not apply 
                to any dividends received by a United States 
                shareholder unless the amount of the dividends is 
                invested in the United States pursuant to a domestic 
                reinvestment plan which--
                            ``(i) is approved by the taxpayer's 
                        president, chief executive officer, or 
                        comparable official before the payment of such 
                        dividend and subsequently approved by the 
                        taxpayer's board of directors, management 
                        committee, executive committee, or similar 
                        body,
                            ``(ii) provides that not less than 25 
                        percent of such dividends will be used--
                                    ``(I) to increase workforce, to 
                                raise wages and benefits, or to 
                                increase pension contributions,
                                    ``(II) to provide for energy 
                                efficiency improvements either through 
                                investment in new property or the 
                                retrofitting of existing property,
                                    ``(III) to provide for 
                                environmental improvements, such as 
                                carbon offsets, water efficiency, or 
                                environmental remediation,
                                    ``(IV) to invest in public-private 
                                partnerships and the improvement of 
                                public infrastructure,
                                    ``(V) to make capital improvements,
                                    ``(VI) for the acquisition of other 
                                businesses, or
                                    ``(VII) for research and 
                                development, and
                            ``(iii) provides that none of such 
                        dividends will be used during the period 
                        covered by the domestic reinvestment plan to 
                        compensate any employee who is the chief 
                        executive officer (or is an individual acting 
                        in such a capacity), or who is among the 4 
                        highest compensated employees, in excess of the 
                        level of compensation paid to individuals in 
                        such capacity during the taxable year 
                        immediately preceding the taxable year to which 
                        an election under this section applies.
                For purposes of clause (iii), compensation shall be 
                determined under rules similar to the rules for 
                reporting executive officer compensation to 
                shareholders under the Securities Exchange Act of 1934.
                    ``(B) Use of certain funds.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), dividends shall be treated as 
                        meeting the requirements of subclauses (I), 
                        (V), and (VII) of subparagraph (A)(ii) only if 
                        such amounts supplement but do not supplant 
                        otherwise planned funding for such purposes. 
                        Such planned funding shall be certified by the 
                        individual and entity approving the domestic 
                        reinvestment plan.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply if the aggregate funding for the purposes 
                        described in subclauses (I), (V), and (VII) of 
                        subparagraph (A)(ii) for the 5-taxable-year 
                        period described in subsection (f)(1) exceeds 
                        125 percent of the amount spent for such 
                        purposes during the 5-year period ending with 
                        the last day of the most recent taxable year 
                        ending before January 1, 2015. Rules similar to 
                        the rules of subparagraphs (B) and (C) of 
                        subsection (c)(2) shall apply for purposes of 
                        determining the 5-year period under the 
                        preceding sentence.
                    ``(C) Compliance.--Under regulations established by 
                the Secretary, any taxpayer making an election under 
                this section shall submit to the Secretary--
                            ``(i) the domestic reinvestment plan 
                        required under this paragraph, and
                            ``(ii) annually thereafter, such 
                        information as required by the Secretary for 
                        purposes of determining such taxpayer's 
                        compliance with the plan, including 
                        contemporaneous documentation of compliance and 
                        retention requirements for a period of time as 
                        determined by the Secretary as appropriate.''.
    (e) Special Rules for Inverted Corporations.--
            (1) In general.--Subsection (b) of section 965 is amended 
        by adding at the end the following new paragraph:
            ``(6) Denial of deduction for certain companies.--No 
        deduction shall be allowed under subsection (a) with respect to 
        any expatriated entity (as defined in section 7874(a)(2)).''.
            (2) Recapture.--Section 965 of the Internal Revenue Code of 
        1986 is amended by adding at the end the following new 
        subsection:
    ``(g) Recapture.--
            ``(1) In general.--In the case of a taxpayer who makes an 
        election under subsection (f) and who is an expatriated 
        entity--
                    ``(A) the tax imposed by this chapter shall be 
                increased for the first taxable year in which such 
                taxpayer becomes an expatriated entity by an amount 
                equal to 20 percent of the amount designated under 
                subsection (f)(3), and
                    ``(B) no credits shall be allowed against the 
                increase in tax under subparagraph (A).
            ``(2) Expatriated entity.--For purposes of this subsection, 
        the term `expatriated entity' has the same meaning given such 
        term under section 7874(a)(2), except that--
                    ``(A) `during the 10-year period beginning with the 
                first taxable year after 2013 to which section 965 
                applies' shall be substituted for `after March 4, 2003' 
                in subparagraph (B)(i), and
                    ``(B) `the first taxable year after 2013 to which 
                section 965 applies' shall be substituted for `March 4, 
                2003' in the matter following subparagraph (B)(iii).''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 3. TRANSFERS TO HIGHWAY TRUST FUND.

    (a) In General.--Subsection (f) of section 9503 of the Internal 
Revenue Code of 1986 is amended by redesignating paragraph (7) as 
paragraph (8) and by inserting after paragraph (6) the following new 
paragraph:
            ``(7) Transfer of revenues from repatriation holiday.--
                    ``(A) Initial transfer.--
                            ``(i) In general.--Not later than 60 days 
                        after the date of the enactment of this Act, 
                        the Secretary shall estimate the amount of 
                        revenues to be received in the Treasury after 
                        the date of the enactment of this paragraph and 
                        before October 1, 2019, from income taxes 
                        imposed on dividends which are taken into 
                        account under section 965.
                            ``(ii) Transfer.--Out of money in the 
                        Treasury not otherwise appropriated, there is 
                        hereby appropriated--
                                    ``(I) to the Highway Account (as 
                                defined in subsection (e)(5)(B)) in the 
                                Highway Trust Fund an amount equal to 
                                80 percent of the amount estimated 
                                under subparagraph (A), and
                                    ``(II) to the Mass Transit Account 
                                in the Highway Trust Fund an amount 
                                equal to 20 percent of the amount so 
                                estimated.
                    ``(B) Additional transfer.--
                            ``(i) In general.--Not later than October 
                        1, 2023, the Secretary shall determine the 
                        amount of revenues received in the Treasury 
                        from income taxes imposed on dividends which 
                        were taken into account under section 965 
                        during the period described in subparagraph 
                        (A)(i).
                            ``(ii) Transfer.--If the amount determined 
                        under clause (i) exceeds the amount transferred 
                        under subparagraph (A)(ii), out of money in the 
                        Treasury not otherwise appropriated, there is 
                        hereby appropriated--
                                    ``(I) to the Highway Account (as 
                                defined in subsection (e)(5)(B)) in the 
                                Highway Trust Fund an amount equal to 
                                the applicable percentage of such 
                                excess, and
                                    ``(II) to the Mass Transit Account 
                                in the Highway Trust Fund an amount 
                                equal to 20 percent of so much of such 
                                excess as does not exceed the 
                                applicable amount.
                            ``(iii) Applicable percentages.--For 
                        purposes of clause (ii), the applicable 
                        percentage is--
                                    ``(I) 80 percent with respect to so 
                                much of excess under subparagraph 
                                (B)(ii) as does not exceed the 
                                applicable amount, and
                                    ``(II) 100 percent with respect the 
                                amount of such excess to which 
                                subclause (I) does not apply.
                            ``(iv) Applicable amount.--For purposes of 
                        this subparagraph, the applicable amount is the 
                        amount (not less than zero) equal to the excess 
                        of--
                                    ``(I) $62,000,000,000, over
                                    ``(II) the amount transferred under 
                                subparagraph (A)(ii).''.
    (b) Return of Excess Transfers.--
            (1) In general.--Subsection (c) of section 9503 of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(6) Return of excess transfers.--If the amount of 
        transfers under subparagraph (A)(ii) of subsection (f)(7) 
        exceeds the amount determined under subparagraph (B)(i) of such 
        subsection, the Secretary shall pay to the general fund of the 
        Treasury from the Highway Trust Fund not later than October 1, 
        2023, an amount equal to such excess.''.
            (2) Portion from mass transit account.--Paragraph (5) of 
        section 9503 of such Code is amended by adding at the end the 
        following new subparagraph:
                    ``(C) Amounts related to certain excess 
                transfers.--20 percent of any transfer under paragraph 
                (6) of subsection (c) shall be borne by the Mass 
                Transit Account.''.

SEC. 4. REPAIR, REPLACEMENT, AND REHABILITATION OF DEFICIENT BRIDGES.

    (a) Deficient Bridge Amount.--For purposes of this section, the 
deficient bridge amount is so much of the amount transferred to the 
Highway Account (as defined in section 9503(e)(5)(B) of the Internal 
Revenue Code of 1986) in the Highway Trust Fund under section 
9503(f)(7)(B) of such Code as exceeds the applicable amount (as defined 
in section 9507(f)(7)(B)(iv) of such Code).
    (b) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated out 
        of the Highway Trust Fund (other than the Mass Transit Account) 
        an amount equal to the deficient bridge amount to be used for 
        the repair, replacement, or rehabilitation of deficient bridges 
        eligible for assistance under chapter 1 of title 23, United 
        States Code.
            (2) Calculation of state amounts.--
                    (A) State apportionments.--The Secretary of 
                Transportation shall apportion the amount authorized to 
                be appropriated under this subsection among the States 
                in accordance with subparagraph (B).
                    (B) State shares.--The amount for each State shall 
                be determined by multiplying the total amount available 
                under this subsection by the share for each State, 
                which shall be equal to the proportion that--
                            (i) the amount of apportionments that the 
                        State received under title 23, United States 
                        Code, for fiscal year 2019; bears to
                            (ii) the amount of those apportionments 
                        received by all States for that fiscal year.
            (3) Contract authority.--Funds authorized to be 
        appropriated by this subsection shall--
                    (A) be available for obligation in the same manner 
                as if the funds were apportioned under chapter 1 of 
                title 23, United States Code; and
                    (B) remain available until expended and not be 
                transferrable.
                                 <all>
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