II 

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. 

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 ‘‘Invest In Transpor5 tation Act’’. 

6 SEC. 2. INCENTIVES TO REINVEST FOREIGN EARNINGS IN 

7 UNITED STATES. 

8 (a) APPLICABILITY OF TEMPORARY DIVIDENDS RE9 CEIVED DEDUCTION.— 


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1 (1) IN GENERAL.—Subsection (f) of section 965 

2 of the Internal Revenue Code of 1986 is amended to 

3 read as follows: 

4 ‘‘(f) ELECTION.— 

5 ‘‘(1) IN GENERAL.—The taxpayer may elect to 

6 apply this section to the 5-taxable-year period begin7 ning with— 

8 ‘‘(A) the taxpayer’s last taxable year which 

9 begins before the date of the enactment of the 

10 Invest In Transportation Act, or 

11 ‘‘(B) the taxpayer’s first taxable year 

12 which begins during the 1-year period beginning 

13 on such date of enactment. 

14 ‘‘(2) TIME FOR MAKING ELECTION.—Any elec15 tion made under this section shall be made on or be16 fore the due date (including extensions) for filing the 

17 return of tax for the first taxable year in the 5-tax18 able-year period described in paragraph (1). 

19 ‘‘(3) DECLARATION OF AMOUNT REPATRI20 ATED.—An election under this section shall des21 ignate a limitation of the aggregate amount of divi22 dends to be taken into account under subsection (a) 

23 during the 5-taxable-year period.’’. 

24 (2) CONFORMING AMENDMENTS.— 


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1 (A) DETERMINATIONS RELATING TO BASE

2 PERIOD FOR DETERMINING EXTRAORDINARY

3 DIVIDENDS.—Section 965 of such Code is 

4 amended by striking ‘‘June 30, 2003’’ each 

5 place it appears in subsections (b)(2) and (c)(2) 

6 and inserting ‘‘December 31, 2014’’. 

7 (B) DETERMINATIONS RELATING TO RE8 LATED PARTY INDEBTEDNESS.—Section 

9 965(b)(3)(B) of such Code is amended by strik10 ing ‘‘October 3, 2004’’ and inserting ‘‘Decem11 ber 31, 2014’’. 

12 (b) DEDUCTION EQUIVALENT TO 6.5-PERCENT RATE

13 OF TAX.—Paragraph (1) of section 965(a) of the Internal 

14 Revenue Code of 1986 is amended by striking ‘‘85 per15 cent’’ and inserting ‘‘81.4 percent’’. 

16 (c) LIMITATIONS.— 

17 (1) IN GENERAL.— 

18 (A) IN GENERAL.—Paragraph (1) of sec19 tion 965(b) of the Internal Revenue Code of 

20 1986 is amended to read as follows: 

21 ‘‘(1) IN GENERAL.—The amount of dividends 

22 taken into account under subsection (a) shall not ex23 ceed the United States shareholder’s pro rata share 

24 of the accumulated earnings and profits described in 

25 section 959(c)(3) as of the end of the last taxable 


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1 year ending on or before December 31, 2014, for all 

2 controlled foreign corporations of the United States 

3 shareholder.’’. 

4 (B) CONFORMING AMENDMENTS.— 

5 (i) Subsection (c) of section 965 of 

6 such Code is amended by striking para7 graph (1). 

8 (ii) Paragraph (5) of section 965(c) of 

9 such Code is amended to read as follows: 

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

11 shareholders which are members of an affiliated 

12 group filing a consolidated return under section 

13 1501 shall be treated as one United States share14 holder.’’. 

15 (2) ADDITIONAL LIMITATION.—Subsection (b) 

16 of section 965 of such Code is amended by redesig17 nating paragraph (4) as paragraph (5) and by in18 serting after paragraph (3) the following new para19 graph: 

20 ‘‘(4) ADDITIONAL LIMITATION.— 

21 ‘‘(A) IN GENERAL.—The amount of divi22 dends taken into account under subsection (a) 

23 for each taxable year during the 5-taxable-year 

24 period described in subsection (f)(1) shall not 

25 exceed the amount designated in the election 


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1 under subsection (f)(3) reduced by the sum 

2 of— 

3 ‘‘(i) the aggregate amount of divi4 dends taken into account under subsection 

5 (a) in prior taxable years in such 5-tax6 able-year period, and 

7 ‘‘(ii) the sum of the dividend short8 falls for each such prior taxable year. 

9 ‘‘(B) DIVIDEND SHORTFALL.—For pur10 poses of subparagraph (A), the dividend short11 fall for any taxable year is an amount equal to 

12 the excess (if any) of— 

13 ‘‘(i) 20 percent of the amount des14 ignated under subsection (f)(3), over 

15 ‘‘(ii) the amount of dividends taken 

16 into account under subsection (a) for such 

17 taxable year.’’. 

18 (d) DIVIDEND REINVESTMENT PLAN REQUIRE19 MENTS.—Paragraph (5) of section 965(b) of the Internal 

20 Revenue Code of 1986, as redesignated by subsection (c), 

21 is amended to read as follows: 

22 ‘‘(5) REQUIREMENT TO INVEST IN UNITED

23 STATES.— 

24 ‘‘(A) IN GENERAL.—Subsection (a) shall 

25 not apply to any dividends received by a United 


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1 States shareholder unless the amount of the 

2 dividends is invested in the United States pur3 suant to a domestic reinvestment plan which— 

4 ‘‘(i) is approved by the taxpayer’s 

5 president, chief executive officer, or com6 parable official before the payment of such 

7 dividend and subsequently approved by the 

8 taxpayer’s board of directors, management 

9 committee, executive committee, or similar 

10 body, 

11 ‘‘(ii) provides that not less than 25 

12 percent of such dividends will be used— 

13 ‘‘(I) to increase workforce, to 

14 raise wages and benefits, or to in15 crease pension contributions, 

16 ‘‘(II) to provide for energy effi17 ciency improvements either through 

18 investment in new property or the ret19 rofitting of existing property, 

20 ‘‘(III) to provide for environ21 mental improvements, such as carbon 

22 offsets, water efficiency, or environ23 mental remediation, 


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1 ‘‘(IV) to invest in public-private 

2 partnerships and the improvement of 

3 public infrastructure, 

4 ‘‘(V) to make capital improve5 ments, 

6 ‘‘(VI) for the acquisition of other 

7 businesses, or 

8 ‘‘(VII) for research and develop9 ment, and 

10 ‘‘(iii) provides that none of such divi11 dends will be used during the period cov12 ered by the domestic reinvestment plan to 

13 compensate any employee who is the chief 

14 executive officer (or is an individual acting 

15 in such a capacity), or who is among the 

16 4 highest compensated employees, in ex17 cess of the level of compensation paid to 

18 individuals in such capacity during the tax19 able year immediately preceding the tax20 able year to which an election under this 

21 section applies. 

22 For purposes of clause (iii), compensation shall 

23 be determined under rules similar to the rules 

24 for reporting executive officer compensation to 


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1 shareholders under the Securities Exchange Act 

2 of 1934. 

3 ‘‘(B) USE OF CERTAIN FUNDS.— 

4 ‘‘(i) IN GENERAL.—Except as pro5 vided in clause (ii), dividends shall be 

6 treated as meeting the requirements of 

7 subclauses (I), (V), and (VII) of subpara8 graph (A)(ii) only if such amounts supple9 ment but do not supplant otherwise 

10 planned funding for such purposes. Such 

11 planned funding shall be certified by the 

12 individual and entity approving the domes13 tic reinvestment plan. 

14 ‘‘(ii) EXCEPTION.—Clause (i) shall 

15 not apply if the aggregate funding for the 

16 purposes described in subclauses (I), (V), 

17 and (VII) of subparagraph (A)(ii) for the 

18 5-taxable-year period described in sub19 section (f)(1) exceeds 125 percent of the 

20 amount spent for such purposes during the 

21 5-year period ending with the last day of 

22 the most recent taxable year ending before 

23 January 1, 2015. Rules similar to the rules 

24 of subparagraphs (B) and (C) of sub25 section (c)(2) shall apply for purposes of 


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1 determining the 5-year period under the 

2 preceding sentence. 

3 ‘‘(C) COMPLIANCE.—Under regulations es4 tablished by the Secretary, any taxpayer mak5 ing an election under this section shall submit 

6 to the Secretary— 

7 ‘‘(i) the domestic reinvestment plan 

8 required under this paragraph, and 

9 ‘‘(ii) annually thereafter, such infor10 mation as required by the Secretary for 

11 purposes of determining such taxpayer’s 

12 compliance with the plan, including con13 temporaneous documentation of compliance 

14 and retention requirements for a period of 

15 time as determined by the Secretary as ap16 propriate.’’. 

17 (e) SPECIAL RULES FOR INVERTED CORPORA18 TIONS.— 

19 (1) IN GENERAL.—Subsection (b) of section 

20 965 is amended by adding at the end the following 

21 new paragraph: 

22 ‘‘(6) DENIAL OF DEDUCTION FOR CERTAIN

23 COMPANIES.—No deduction shall be allowed under 

24 subsection (a) with respect to any expatriated entity 

25 (as defined in section 7874(a)(2)).’’. 


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1 (2) RECAPTURE.—Section 965 of the Internal 

2 Revenue Code of 1986 is amended by adding at the 

3 end the following new subsection: 

4 ‘‘(g) RECAPTURE.— 

5 ‘‘(1) IN GENERAL.—In the case of a taxpayer 

6 who makes an election under subsection (f) and who 

7 is an expatriated entity— 

8 ‘‘(A) the tax imposed by this chapter shall 

9 be increased for the first taxable year in which 

10 such taxpayer becomes an expatriated entity by 

11 an amount equal to 20 percent of the amount 

12 designated under subsection (f)(3), and 

13 ‘‘(B) no credits shall be allowed against 

14 the increase in tax under subparagraph (A). 

15 ‘‘(2) EXPATRIATED ENTITY.—For purposes of 

16 this subsection, the term ‘expatriated entity’ has the 

17 same meaning given such term under section 

18 7874(a)(2), except that— 

19 ‘‘(A) ‘during the 10-year period beginning 

20 with the first taxable year after 2013 to which 

21 section 965 applies’ shall be substituted for 

22 ‘after March 4, 2003’ in subparagraph (B)(i), 

23 and 

24 ‘‘(B) ‘the first taxable year after 2013 to 

25 which section 965 applies’ shall be substituted 


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1 for ‘March 4, 2003’ in the matter following 

2 subparagraph (B)(iii).’’. 

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

4 this section shall apply to taxable years ending after the 

5 date of the enactment of this Act. 

6 SEC. 3. TRANSFERS TO HIGHWAY TRUST FUND. 

7 (a) IN GENERAL.—Subsection (f) of section 9503 of 

8 the Internal Revenue Code of 1986 is amended by redesig9 nating paragraph (7) as paragraph (8) and by inserting 

10 after paragraph (6) the following new paragraph: 

11 ‘‘(7) TRANSFER OF REVENUES FROM REPATRI12 ATION HOLIDAY.— 

13 ‘‘(A) INITIAL TRANSFER.— 

14 ‘‘(i) IN GENERAL.—Not later than 60 

15 days after the date of the enactment of 

16 this Act, the Secretary shall estimate the 

17 amount of revenues to be received in the 

18 Treasury after the date of the enactment 

19 of this paragraph and before October 1, 

20 2019, from income taxes imposed on divi21 dends which are taken into account under 

22 section 965. 

23 ‘‘(ii) TRANSFER.—Out of money in 

24 the Treasury not otherwise appropriated, 

25 there is hereby appropriated— 


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1 ‘‘(I) to the Highway Account (as 

2 defined in subsection (e)(5)(B)) in the 

3 Highway Trust Fund an amount 

4 equal to 80 percent of the amount es5 timated under subparagraph (A), and 

6 ‘‘(II) to the Mass Transit Ac7 count in the Highway Trust Fund an 

8 amount equal to 20 percent of the 

9 amount so estimated. 

10 ‘‘(B) ADDITIONAL TRANSFER.— 

11 ‘‘(i) IN GENERAL.—Not later than Oc12 tober 1, 2023, the Secretary shall deter13 mine the amount of revenues received in 

14 the Treasury from income taxes imposed 

15 on dividends which were taken into ac16 count under section 965 during the period 

17 described in subparagraph (A)(i). 

18 ‘‘(ii) TRANSFER.—If the amount de19 termined under clause (i) exceeds the 

20 amount transferred under subparagraph 

21 (A)(ii), out of money in the Treasury not 

22 otherwise appropriated, there is hereby ap23 propriated— 

24 ‘‘(I) to the Highway Account (as 

25 defined in subsection (e)(5)(B)) in the 


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1 Highway Trust Fund an amount 

2 equal to the applicable percentage of 

3 such excess, and 

4 ‘‘(II) to the Mass Transit Ac5 count in the Highway Trust Fund an 

6 amount equal to 20 percent of so 

7 much of such excess as does not ex8 ceed the applicable amount. 

9 ‘‘(iii) APPLICABLE PERCENTAGES.— 

10 For purposes of clause (ii), the applicable 

11 percentage is— 

12 ‘‘(I) 80 percent with respect to so 

13 much of excess under subparagraph 

14 (B)(ii) as does not exceed the applica15 ble amount, and 

16 ‘‘(II) 100 percent with respect 

17 the amount of such excess to which 

18 subclause (I) does not apply. 

19 ‘‘(iv) APPLICABLE AMOUNT.—For 

20 purposes of this subparagraph, the applica21 ble amount is the amount (not less than 

22 zero) equal to the excess of— 

23 ‘‘(I) $62,000,000,000, over 

24 ‘‘(II) the amount transferred 

25 under subparagraph (A)(ii).’’. 


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1 (b) RETURN OF EXCESS TRANSFERS.— 

2 (1) IN GENERAL.—Subsection (c) of section 

3 9503 of such Code is amended by adding at the end 

4 the following new paragraph: 

5 ‘‘(6) RETURN OF EXCESS TRANSFERS.—If the 

6 amount of transfers under subparagraph (A)(ii) of 

7 subsection (f)(7) exceeds the amount determined 

8 under subparagraph (B)(i) of such subsection, the 

9 Secretary shall pay to the general fund of the Treas10 ury from the Highway Trust Fund not later than 

11 October 1, 2023, an amount equal to such excess.’’. 

12 (2) PORTION FROM MASS TRANSIT ACCOUNT.— 

13 Paragraph (5) of section 9503 of such Code is 

14 amended by adding at the end the following new 

15 subparagraph: 

16 ‘‘(C) AMOUNTS RELATED TO CERTAIN EX17 CESS TRANSFERS.—20 percent of any transfer 

18 under paragraph (6) of subsection (c) shall be 

19 borne by the Mass Transit Account.’’. 

20 SEC. 4. REPAIR, REPLACEMENT, AND REHABILITATION OF 

21 DEFICIENT BRIDGES. 

22 (a) DEFICIENT BRIDGE AMOUNT.—For purposes of 

23 this section, the deficient bridge amount is so much of the 

24 amount transferred to the Highway Account (as defined 

25 in section 9503(e)(5)(B) of the Internal Revenue Code of 


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1 1986) in the Highway Trust Fund under section 

2 9503(f)(7)(B) of such Code as exceeds the applicable 

3 amount (as defined in section 9507(f)(7)(B)(iv) of such 

4 Code). 

5 (b) AUTHORIZATION OF APPROPRIATIONS.— 

6 (1) IN GENERAL.—There is authorized to be 

7 appropriated out of the Highway Trust Fund (other 

8 than the Mass Transit Account) an amount equal to 

9 the deficient bridge amount to be used for the re10 pair, replacement, or rehabilitation of deficient 

11 bridges eligible for assistance under chapter 1 of 

12 title 23, United States Code. 

13 (2) CALCULATION OF STATE AMOUNTS.— 

14 (A) STATE APPORTIONMENTS.—The Sec15 retary of Transportation shall apportion the 

16 amount authorized to be appropriated under 

17 this subsection among the States in accordance 

18 with subparagraph (B). 

19 (B) STATE SHARES.—The amount for each 

20 State shall be determined by multiplying the 

21 total amount available under this subsection by 

22 the share for each State, which shall be equal 

23 to the proportion that— 


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1 (i) the amount of apportionments that 

2 the State received under title 23, United 

3 States Code, for fiscal year 2019; bears to 

4 (ii) the amount of those apportion5 ments received by all States for that fiscal 

6 year. 

7 (3) CONTRACT AUTHORITY.—Funds authorized 

8 to be appropriated by this subsection shall— 

9 (A) be available for obligation in the same 

10 manner as if the funds were apportioned under 

11 chapter 1 of title 23, United States Code; and 

12 (B) remain available until expended and 

13 not be transferrable. 

Æ 


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