I 
113TH CONGRESS 
1ST SESSION H. R. 2084 
To establish the American Infrastructure Fund, to provide bond guarantees 
and make loans to States, local governments, and non-profit infrastruc-
ture providers for investments in certain infrastructure projects, and 
to provide equity investments in such projects, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 22, 2013 
Mr. DELANEY (for himself, Mr. BARR, Mr. BERA of California, Mr. CARNEY, 
Mr. COLE, Mr. CONNOLLY, Mr. RODNEY
DAVIS
of Illinois, Mr. 
FITZPATRICK, Ms. GABBARD, Mr. GARCIA, Mr. GIBSON, Mr. JOHNSON of 
Ohio, Mr. JOYCE, Mr. KENNEDY, Mr. KIND, Mr. KINZINGER of Illinois, 
Mr. MESSER, Mr. MORAN, Mr. MURPHY of Florida, Mr. PETERS of Cali-
fornia, Mr. PITTENGER, Mr. POLIS, Mr. RUPPERSBERGER, Ms. SINEMA, 
Mr. STIVERS, Mr. TURNER, and Mr. YOHO) introduced the following bill; 
which was referred to the Committee on Transportation and Infrastruc-
ture, and in addition to the Committee on Ways and Means, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To establish the American Infrastructure Fund, to provide 
bond guarantees and make loans to States, local govern-
ments, and non-profit infrastructure providers for invest-
ments in certain infrastructure projects, and to provide 
equity investments in such projects, and for other pur-
poses. 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Partnership to Build 
America Act of 2013’’. 
SEC. 2. AMERICAN INFRASTRUCTURE FUND. 
(a) AMERICAN INFRASTRUCTURE FUND.— 
(1) IN GENERAL.—There is established a wholly 
owned Government corporation to be called the 
American Infrastructure Fund (‘‘AIF’’)— 
(A) which shall be headed by the Board of 
Trustees established under subsection (b); 
(B) which may have separate sub-accounts 
or subsidiaries for funds used to make loans, 
bond guarantees, and equity investments under 
this section and funds used to make bond guar-
antees under this section; 
(C) which shall be available to the AIF to 
pay for the costs of carrying out this section, 
including the compensation of the Board and 
other employees of the AIF; and 
(D) the funds of which may be invested by 
the Board in such manner as the Board deter-
mines appropriate. 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
(2) DEPOSITS TO AIF.—All funds received from 
bond issuances, loan payments, bond guarantee fees, 
and any other funds received in carrying out this 
section shall be held by AIF. 
(3) LIMITATIONS.—The charter of the AIF 
shall limit its activities to those activities described 
as the mission of the Board under subsection (b)(2). 
(4) OVERSIGHT.—The AIF shall register with 
the Securities and Exchange Commission and the 
Secretary shall report to Congress annually as to 
whether the AIF is fulfilling the mission of the 
Board under subsection (b)(2). 
(5) TREATMENT
OF
AIF.—Title 31, United 
States Code, is amended in each of sections 
9107(c)(3) and 9108(d)(2)— 
(A) by inserting ‘‘the American Infrastruc-
ture Fund,’’ after ‘‘the Regional Banks for Co-
operatives,’’; and 
(B) by striking ‘‘those banks’’ and insert-
ing ‘‘those entities’’. 
(b) BOARD OF TRUSTEES.— 
(1) IN GENERAL.—There is established a Board 
of Trustees of the AIF (the ‘‘Board’’), which shall 
be composed of 11 members, of which at least 4 
must be risk management experts, as certified by 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
the Board, having substantial experience in bond 
guarantees or municipal credit. 
(2) MISSION.—The Mission of the Board is— 
(A) to operate the AIF and its subsidiaries 
to be a low cost provider of bond guarantees, 
loans, and equity investments to State and local 
governments and non-profit infrastructure pro-
viders for both urban and rural non-profit in-
frastructure projects that provide a positive eco-
nomic impact and to meet such other standards 
as the Board may develop; 
(B) to operate the AIF in a self-sustaining 
manner so as to allow the AIF to repay its in-
frastructure bonds when due; 
(C) to not have a profit motive, but seek 
at all times to pursue its mission of providing 
low cost bond guarantees and loans while cov-
ering its costs, reserves as may be needed, and 
applying prudent underwriting standards; 
(D) to only consider projects put forth by 
State and local governments and not to seek 
projects directly; 
(E) to at all times make clear that no tax-
payer money supports the AIF or ever will; and 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
(F) to engage in no other activities other 
than those permitted under this section. 
(3) MEMBERSHIP.— 
(A) 
PRESIDENTIALLY-APPOINTED
MEM-
BERS.—Except as provided under subparagraph 
(C), 4 members of the Board shall be appointed 
by the President, by and with the advice and 
consent of the Senate, and serve for a term of 
7 years. 
(B) ADDITIONAL
MEMBERS.—Except as 
provided under subparagraph (C), 7 members 
of the Board shall be appointed by the current 
members of the Board appointed pursuant to 
this subparagraph or subparagraph (C)(ii), and 
serve for a term of 7 years. 
(C) INITIAL MEMBERS.—The Board shall 
initially consist of the following members, who 
shall be appointed not later than the end of the 
60-day period beginning on the date that bonds 
are issued under subsection (e): 
(i) Four members, appointed by the 
President, by and with the advice and con-
sent of the Senate. 
(ii) Seven additional members, ap-
pointed one each by the seven entities pur-
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
chasing the largest amount of bonds (by 
aggregate face amount of bonds pur-
chased) under subsection (e). 
(D) STAGGERED TERMS.—The members of 
the Board shall serve staggered terms, with 2 
each of the initial members of the Board serv-
ing for terms of 4, 5, 6, 7, and 8 years, respec-
tively, and the initial Chair selected under sub-
paragraph (E) serving for 9 years. The decision 
of which Board members, other than the Chair, 
serve for which initial terms shall be made by 
the members of the Board drawing lots. 
(E) CHAIR.—The members of the Board 
shall choose 1 member to serve as the Chair of 
the Board for a term of 7 years, except that the 
initial Chair shall serve for a term of 7 years, 
as described under subparagraph (D). 
(F) VACANCIES.—Any member of the 
Board appointed to fill a vacancy occurring be-
fore the expiration of the term to which that 
member’s predecessor was appointed shall be 
appointed only for the remainder of the term. 
(G) CONTINUATION
OF
SERVICE.—Each 
member of the Board may continue to serve 
after the expiration of the term of office to 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
which that member was appointed until a suc-
cessor has been appointed. 
(H) CONFLICTS OF INTEREST.—No mem-
ber of the Board may have a financial interest 
in, or be employed by, a Qualified Infrastruc-
ture Project (‘‘QIP’’) related to assistance pro-
vided under this section or any entity that has 
purchased bonds under subsection (e). Owning 
municipal credit of any State or local govern-
ment or owning the securities of a diversified 
company that engages in infrastructure activi-
ties, provided those activities constitute less 
than 20 percent of the company’s revenues, or 
investing in broadly held investment funds shall 
not be deemed to create a conflict of interest. 
The Board may issue regulations to define 
terms used under this subparagraph. 
(4) COMPENSATION.—The members of the 
Board shall be compensated at an amount to be set 
by the Board, but under no circumstances may such 
compensation be higher than the rate prescribed for 
level IV of the Executive Schedule under section 
5315 of title 5, United States Code. 
(5) STAFF.—The Board shall employ and set 
compensation for such staff as the Board determines 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
as is necessary to carry out the activities and mis-
sion of the AIF, and such staff may be paid without 
regard to the provisions of chapter 51 and sub-
chapter III of chapter 53, United States Code, relat-
ing to classification and General Schedule pay rates. 
(6) PROCEDURES.—The Board shall establish 
such procedures as are necessary to carry out this 
section. 
(7) CORPORATE GOVERNANCE STANDARDS.— 
(A) BOARD
COMMITTEES
GENERALLY.— 
The Board shall maintain all of the committees 
required to be maintained by the board of direc-
tors of an issuer listed on the New York Stock 
Exchange as of the date of the enactment of 
this section. 
(B) RISK MANAGEMENT COMMITTEE.—The 
Board shall maintain a risk management com-
mittee, which shall— 
(i) consist of 4 members of the Board, 
with the initial 4 members consisting of 2 
members 
appointed 
under 
paragraph 
(3)(C)(i) and 2 members appointed under 
paragraph (3)(C)(ii); 
(ii) employ additional staff who are 
certified by the Board as having significant 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
and relevant experience in insurance un-
derwriting and credit risk management; 
and 
(iii) establish the risk management 
policies used by the Board. 
(C) STANDARDS.—The Board shall, to the 
extent practicable, follow all standards with re-
spect to corporate governance that are required 
to be followed by the board of directors of an 
issuer listed on the New York Stock Exchange 
as of the date of the enactment of this section. 
(c) INFRASTRUCTURE INVESTMENT.— 
(1) IN GENERAL.—The AIF shall provide bond 
guarantees to debt issued by State and local govern-
ments and non-profit infrastructure providers, make 
loans to States, local governments, and non-profit 
infrastructure providers, and make equity invest-
ments in projects sponsored by State and local gov-
ernments and non-profit infrastructure provider to 
help Qualified Infrastructure Projects (‘‘QIPs’’). 
The AIF may not make any loans or provide bond 
guaranties to for-profit entities. 
(2) QUALIFIED INFRASTRUCTURE PROJECTS.— 
A project qualifies as a QIP under this section if— 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
(A) the project involves the construction, 
maintenance, improvement, or repair of a trans-
portation, energy, water, communications, or 
educational facility; and 
(B) the recipient of bond guarantees, 
loans, equity investments, or any other financ-
ing technique authorized under this Act pro-
vides written assurances prescribed by the AIF 
that the project will be performed in compliance 
with the requirements of all Federal laws that 
would otherwise apply to similar projects to 
which the United States is a party. 
(3) APPLICATION FOR ASSISTANCE.— 
(A) IN GENERAL.—A State or local gov-
ernment that wishes to receive a loan or bond 
guarantee under this section shall submit an 
application to the Board in such form and man-
ner and containing such information as the 
Board may require. 
(B) REQUIREMENT
FOR
NON-PROFIT
IN-
FRASTRUCTURE
PROVIDERS
TO
APPLY 
THROUGH STATE OR LOCAL GOVERNMENTS.—A 
non-profit infrastructure provider may only re-
ceive a bond guarantee, loan, or equity invest-
ment under this section if the State or local 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
government for the jurisdiction in which the 
non-profit infrastructure provider is located 
submits an application pursuant to subpara-
graph (A) on behalf of such non-profit infra-
structure provider. 
(4) LIMITATIONS ON SINGLE STATE AWARDS.— 
(A) ANNUAL
LIMITATION.—The Board 
shall set an annual limit, as a percentage of 
total assistance provided under this section dur-
ing a year, on the amount of assistance a single 
State (including local governments and other 
non-profit infrastructure providers within such 
State) may receive in assistance provided under 
this section. 
(B) 
CUMULATIVE
LIMITATION.—The 
Board shall set a limit, as a percentage of total 
assistance provided under this section out-
standing at any one time, on the amount of as-
sistance a single State (including local govern-
ments and other non-profit infrastructure pro-
viders within such State) may receive in assist-
ance provided under this section. 
(5) LOAN SPECIFICATIONS.—Loans made under 
this section shall have such maturity and carry such 
interest rate as the Board determines appropriate. 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
(6) BOND
GUARANTEE.—The Board shall 
charge such fees for Bond guarantees made under 
this section as the Board determines appropriate. 
(7) EQUITY INVESTMENTS.—With respect to a 
QIP, the amount of an equity investment made by 
the AIF in such QIP may not exceed 20 percent of 
the total cost of the QIP. 
(8) PUBLIC-PRIVATE
PARTNERSHIP
REQUIRE-
MENTS.—At least 25 percent of the assistance pro-
vided under this section shall be provided to QIPs 
for which at least 20 percent of the financing for 
such QIPs comes from private debt or equity. 
(9) PROHIBITION
ON
PRINCIPAL
FORGIVE-
NESS.—With respect to a loan made under this sec-
tion, the Board may not forgive any amount of prin-
cipal on such loan. 
(d) AMERICAN INFRASTRUCTURE BONDS.— 
(1) IN
GENERAL.—The Secretary shall, not 
later than the end of the 90-day period following the 
date of the enactment of this section and acting 
through the AIF, issue bonds, to be called ‘‘Amer-
ican Infrastructure Bonds’’, the proceeds from which 
shall be deposited into the AIF. 
(2) FORMS AND DENOMINATIONS; INTEREST.— 
American Infrastructure Bonds shall— 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
(A) be in such forms and denominations as 
determined by the Secretary, and shall have a 
50-year maturity; and 
(B) bear interest of 1 percent. 
(3) NO
FULL
FAITH
AND
CREDIT.—Interest 
and principal payments paid to holders of American 
Infrastructure Bonds shall be paid from the AIF, to 
the extent funds are available, and shall not be 
backed by the full faith and credit of the United 
States. 
(4) AMOUNT OF BONDS.—The aggregate face 
amount of the bonds issued under this subsection 
shall be $50,000,000,000. 
(5) SALE
OF
AMERICAN
INFRASTRUCTURE 
BONDS.— 
(A) COMPETITIVE
BIDDING
PROCESS.— 
The Secretary shall sell the $50,000,000,000 of 
American Infrastructure Bonds— 
(i) through a competitive bidding 
process that encourages aggressive bidding; 
(ii) in a manner so as to ensure that 
there are at least 7 different un-affiliated 
purchasers; and 
(iii) with prospective purchasers bid-
ding on how low of a multiplier they will 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
accept (for purposes of subsection (b)(1) of 
section 966 of the Internal Revenue Code 
of 1986) when purchasing the American 
Infrastructure Bonds, for purposes of ap-
plying the foreign earnings exclusion de-
scribed under that section. 
(B) 
LIMITATION.—The 
multiplier 
de-
scribed under subparagraph (A)(iii) may not be 
greater than 6. 
(6) REIMBURSEMENT OF COSTS.—The Board 
shall repay the Secretary, from funds in the AIF, for 
the costs to the Secretary in carrying out this sub-
section. 
(e) ADDITIONAL BONDS.— 
(1) IN GENERAL.—The Board may issue such 
other bonds as the Board determines appropriate, 
the proceeds from which shall be deposited into the 
AIF. 
(2) NO
FULL
FAITH
AND
CREDIT.—Interest 
and principal payments paid to holders of bonds 
issued pursuant to paragraph (1) shall be paid from 
the AIF, to the extent funds are available, and shall 
not be backed by the full faith and credit of the 
United States. 
(f) DEFINITIONS.—For purposes of this section: 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
(1) BOND GUARANTEE.—The term ‘‘bond guar-
antee’’ has the meaning given the term ‘‘loan guar-
antee’’ under section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a). 
(2) COST.—With respect to a loan or a bond 
guarantee, the term ‘‘cost’’ has the meaning given 
such term under section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a). 
(3) 
NON-PROFIT
INFRASTRUCTURE
PRO-
VIDER.—The term ‘‘non-profit infrastructure pro-
vider’’ means a non-profit entity that seeks to fi-
nance a QIP. 
(4) LOAN.—The term ‘‘loan’’ has the meaning 
given the term ‘‘direct loan’’ under section 502 of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 
661a). 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(6) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, any ter-
ritory or possession of the United States, and each 
federally recognized Indian tribe. 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
SEC. 3. FOREIGN EARNINGS EXCLUSION FOR PURCHASE OF 
INFRASTRUCTURE BONDS. 
(a) IN GENERAL.—Subpart F of part III of sub-
chapter N of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 966. FOREIGN EARNINGS EXCLUSION FOR PURCHASE 
OF INFRASTRUCTURE BONDS. 
‘‘(a) EXCLUSION.—In the case of a corporation which 
is a United States shareholder and for which the election 
under this section is in effect for the taxable year, gross 
income does not include an amount equal to the qualified 
cash dividend amount. 
‘‘(b) QUALIFIED CASH DIVIDEND AMOUNT.—For 
purposes of this section, the term ‘qualified cash dividend 
amount’ means an amount of the cash dividends which 
are received during a taxable year by such shareholder 
from controlled foreign corporations equal to— 
‘‘(1) the multiplier determined under section 
2(d)(5) of the Partnership to Build America Act of 
2013 for such shareholder, multiplied by 
‘‘(2) the face amount of qualified infrastructure 
bonds acquired at its original issue (directly or 
through an underwriter) by such shareholder. 
‘‘(c) LIMITATIONS.— 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(1) IN GENERAL.—The amount of dividends 
taken into account under subsection (a) for a tax-
able year shall not exceed the lesser of— 
‘‘(A) the cash dividends received by the 
taxpayer for such taxable year, or 
‘‘(B) the amount shown on the applicable 
financial statement as earnings permanently re-
invested outside the United States. 
‘‘(2) DIVIDENDS MUST BE EXTRAORDINARY.— 
The amount of dividends taken into account under 
subsection (a) shall not exceed the excess (if any) 
of— 
‘‘(A) the cash dividends received during 
the taxable year by such shareholder from con-
trolled foreign corporations, over 
‘‘(B) the annual average for the base pe-
riod years of the cash dividends received during 
each base period year by such shareholder from 
controlled foreign corporations. 
‘‘(3) REDUCTION OF BENEFIT IF INCREASE IN 
RELATED PARTY INDEBTEDNESS.—The amount of 
dividends which would (but for this paragraph) be 
taken into account under subsection (a) shall be re-
duced by the excess (if any) of— 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(A) the amount of indebtedness of the 
controlled foreign corporation to any related 
person (as defined in section 954(d)(3)) as of 
the close of the taxable year for which the elec-
tion under this section is in effect, over 
‘‘(B) the amount of indebtedness of the 
controlled foreign corporation to any related 
person (as so defined) as of the close of the pre-
ceding taxable year. 
All controlled foreign corporations with respect to 
which the taxpayer is a United States shareholder 
shall be treated as 1 controlled foreign corporation 
for purposes of this subsection. The Secretary may 
prescribe such regulations as may be necessary or 
appropriate to prevent the avoidance of the purposes 
of this subsection, including regulations which pro-
vide that cash dividends shall not be taken into ac-
count under subsection (a) to the extent such divi-
dends are attributable to the direct or indirect trans-
fer (including through the use of intervening entities 
or capital contributions) of cash or other property 
from a related person (as so defined) to a controlled 
foreign corporation. 
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(1) QUALIFIED
INFRASTRUCTURE
BONDS.— 
The term ‘qualified infrastructure bond’ means a 
bond issued under section 2(d) of the Partnership to 
Build America Act of 2013. 
‘‘(2) APPLICABLE
FINANCIAL
STATEMENT.— 
The term ‘applicable financial statement’ means, 
with respect to a taxable year— 
‘‘(A) with respect to a United States 
shareholder which is required to file a financial 
statement with the Securities and Exchange 
Commission (or which is included in such a 
statement so filed by another person), the most 
recent audited annual financial statement (in-
cluding the notes which form an integral part 
of such statement) of such shareholder (or 
which includes such shareholder)— 
‘‘(i) which was so filed for such tax-
able year, and 
‘‘(ii) which is certified as being pre-
pared in accordance with generally accept-
ed accounting principles, and 
‘‘(B) with respect to any other United 
States shareholder, the most recent audited fi-
nancial statement (including the notes which 
form an integral part of such statement) of 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
such shareholder (or which includes such share-
holder)— 
‘‘(i) which is certified as being pre-
pared in accordance with generally accept-
ed accounting principles, and 
‘‘(ii) which is used for the purposes of 
a statement or report— 
‘‘(I) to creditors, 
‘‘(II) to shareholders, or 
‘‘(III) for any other substantial 
nontax purpose. 
‘‘(3) BASE PERIOD YEARS.— 
‘‘(A) IN GENERAL.—The base period years 
are the 3 taxable years— 
‘‘(i) which are among the 5 most re-
cent preceding taxable years ending before 
the taxable year, and 
‘‘(ii) which are determined by dis-
regarding— 
‘‘(I) 1 taxable year for which the 
amount 
described 
in 
subsection 
(c)(2)(B) is the largest, and 
‘‘(II) 1 taxable year for which 
such amount is the smallest. 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(B) SHORTER PERIOD.—If the taxpayer 
has fewer than 5 taxable years ending before 
the taxable year, then in lieu of applying sub-
paragraph (A), the base period years shall in-
clude all the taxable years of the taxpayer end-
ing before such taxable year. 
‘‘(C) MERGERS, ACQUISITIONS, ETC.— 
‘‘(i) IN
GENERAL.—Rules similar to 
the rules of subparagraphs (A) and (B) of 
section 41(f)(3) shall apply for purposes of 
this paragraph. 
‘‘(ii) SPIN-OFFS, ETC.—If there is a 
distribution to which section 355 (or so 
much of section 356 as relates to section 
355) applies during the 5-year period re-
ferred to in subparagraph (A)(i) and the 
controlled corporation (within the meaning 
of section 355) is a United States share-
holder— 
‘‘(I) the controlled corporation 
shall be treated as being in existence 
during the period that the distributing 
corporation (within the meaning of 
section 355) is in existence, and 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
‘‘(II) for purposes of applying 
subsection (c)(2) to the controlled cor-
poration and the distributing corpora-
tion, amounts described in subsection 
(c)(2)(B) which are received or includ-
ible by the distributing corporation or 
controlled corporation (as the case 
may be) before the distribution re-
ferred to in subclause (I) from a con-
trolled foreign corporation shall be al-
located between such corporations in 
proportion to their respective interests 
as United States shareholders of such 
controlled foreign corporation imme-
diately after such distribution. 
Subclause (II) shall not apply if neither 
the controlled corporation nor the distrib-
uting corporation is a United States share-
holder of such controlled foreign corpora-
tion immediately after such distribution. 
‘‘(4) DIVIDEND.—The term ‘dividend’ shall not 
include amounts includible in gross income as a divi-
dend under section 78, 367, or 1248. In the case of 
a liquidation under section 332 to which section 
367(b) applies, the preceding sentence shall not 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
apply to the extent the United States shareholder 
actually receives cash as part of the liquidation. 
‘‘(5) COORDINATION WITH DIVIDEND RECEIVED 
DEDUCTION.—No deduction shall be allowed under 
section 243 or 245 for any dividend which is ex-
cluded from income by subsection (a). 
‘‘(6) 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 share-
holder. 
‘‘(7) REPORTING.—The Secretary shall require 
by regulation or other guidance the reporting of 
such information as the Secretary may require to 
carry out this section. 
‘‘(e) DENIAL OF FOREIGN TAX CREDIT; DENIAL OF 
CERTAIN EXPENSES.— 
‘‘(1) FOREIGN TAX CREDIT.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under section 901 for any taxes paid or 
accrued (or treated as paid or accrued) with re-
spect to the excluded portion of any dividend. 
‘‘(B) DENIAL OF DEDUCTION OF RELATED 
TAX.—No deduction shall be allowed under this 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
chapter for any tax for which credit is not al-
lowable by reason of the preceding sentence. 
‘‘(2) EXPENSES.—No deduction shall be al-
lowed for expenses directly allocable to the exclud-
able portion described in paragraph (1). 
‘‘(3) EXCLUDABLE PORTION.—For purposes of 
paragraph (1), unless the taxpayer otherwise speci-
fies, the excludable portion of any dividend or other 
amount is the amount which bears the same ratio to 
the amount of such dividend or other amount as the 
amount excluded from income under subsection (a) 
for the taxable year bears to the amount described 
in subsection (c)(2)(A) for such year. 
‘‘(4) COORDINATION WITH SECTION 78.—Sec-
tion 78 shall not apply to any tax which is not allow-
able as a credit under section 901 by reason of this 
subsection. 
‘‘(f) ELECTION TO HAVE SECTION APPLY.—A tax-
payer may elect to have this section apply for any taxable 
year.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart F of part III of subchapter N of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 966. Foreign earnings exclusion for purchase of infrastructure bonds.’’. 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6211
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to dividends received for taxable 
years ending after the date of the enactment of this Act. 
Æ 
VerDate Mar 15 2010 
22:38 May 24, 2013
Jkt 029200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6301
E:\BILLS\H2084.IH
H2084
tkelley on DSK3SPTVN1PROD with BILLS