Patriot Corporations of America Act of 2013

To provide Federal contracting preferences for, and a reduction in the rate of income tax imposed on, Patriot corporations, and for other purposes. 1. Short title This Act may be cited as the Patriot Corporations of America Act of 2013 2. Federal contracting preference for Patriot corporations After December 31, 2013, in the evaluation of bids or proposals for a contract for the procurement of goods or services, the Federal Government shall provide a preference to any entity that is a Patriot corporation (as defined in section 11(e) of the Internal Revenue Code of 1986, as added by section 3 of this Act), unless the award of the contract to such entity would jeopardize the national security interests of the United States. 3. Reduction in rate of income tax for Patriot corporations (a) In general Section 11 (e) Patriot corporations (1) Rate reduction for Patriot corporations In the case of a Patriot corporation, the amount of the tax imposed under subsection (a) (determined without regard to this paragraph) shall be reduced (but not below zero) by an amount equal to 5 percent of the taxable income of such corporation. (2) Patriot corporation defined For purposes of this subsection— (A) In general The term Patriot corporation (B) Requirements A corporation meets the requirements of this subparagraph, with respect to any taxable year, if such corporation— (i) produces in the United States at least 90 percent of the goods and services sold by such corporation during such taxable year, (ii) does not provide compensation to any management personnel of such corporation at a level of compensation which exceeds 10,000 percent of the level of compensation of the full-time employee of such corporation with the lowest level of compensation during such taxable year, (iii) conducts at least 50 percent of the research and development conducted by such corporation during such taxable year (determined on the basis of cost) in the United States, (iv) has contributed at least 5 percent of wages paid by the corporation during the taxable year to a portable pension fund for the benefit of employees of the corporation, (v) has paid at least 70 percent of the cost of a standardized health insurance plan for the benefit of employees of the corporation during such taxable year, (vi) has maintained at all times during such taxable year neutrality in employee organizing drives and has in effect a policy to that effect, (vii) provides full differential salary and insurance benefits for all National Guard and Reserve employees who are called to active duty, (viii) has not been (at any time during such taxable year) in violation of appropriate Federal regulations including those related to the environment, workplace safety, labor relations, and consumer protections, as determined by the Secretary, and (ix) has not been in violation of any other regulations specified by the Secretary. (C) Certification process Not later than 90 days after the date of the enactment of this subsection, the Secretary shall establish an application and certification process to annually certify corporations as Patriot corporations. Such certifications shall be made at such time and on the basis of such materials as the Secretary determines appropriate. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013. (c) Certification allowed for year preceding effective date of rate reduction For purposes of section 11(e) 4. Tax avoidance foreign corporations subject to United States income tax (a) In general Paragraph (4) of section 7701(a) of the Internal Revenue Code of 1986 (defining domestic) is amended to read as follows: (4) Domestic (A) In general Except as provided in subparagraph (B), the term domestic (B) Tax avoidance foreign corporations treated as domestic Any corporation which would (but for this subparagraph) be treated as a foreign corporation shall be treated as a domestic corporation if the Secretary determines that such corporation was created or organized as a foreign corporation (instead of as a domestic corporation) principally for the purpose of avoiding being treated as a domestic corporation under this title. . (b) Effective dates The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Patriot Corporations of America Act of 2013 - Grants after 2013 a preference to Patriot corporations in the evaluation of bids or proposals for federal contracts. Defines "Patriot corporation" as a corporation which: (1) produces at least 90% of its goods and services in the United States; (2) does not pay its its management-level employees at a rate more than 10,000% of the compensation of its lowest paid employee; (3) conducts at least 50% of its research and development in the United States; (4) contributes at least 5% of its payroll to a portable pension fund for its employees; (5) pays at least 70% of its employees' health insurance costs; (6) maintains a policy of neutrality in employee organizing drives; (7) provides full differential salary and insurance benefits for all National Guard and Reserve employees who are called to active duty; and (8) has not violated federal regulations, including regulations relating to the environment, workplace safety, labor relations, and consumer protections. Amends the Internal Revenue Code to: (1) reduce the income tax rate for Patriot corporations, and (2) reclassify foreign corporations created or organized to avoid federal taxation as domestic corporations for income tax purposes.