I 
117TH CONGRESS 
1ST SESSION H. R. 4940 
To amend the Internal Revenue Code of 1986 to impose a tax on real 
profits of certain corporations. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 6, 2021 
Mr. BEYER introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
a tax on real profits of certain corporations. 
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 ‘‘Real Corporate Profits 
Tax Act of 2021’’. 
SEC. 2. IMPOSITION OF ADDITIONAL TAX ON REAL COR-
PORATE PROFITS. 
(a) IMPOSITION OF TAX.— 
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(1) IN GENERAL.—Subtitle A of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new chapter: 
‘‘CHAPTER 4A—TAX ON CORPORATE BOOK 
INCOME 
‘‘Sec. 1476. Tax on book income. 
‘‘Sec. 1477. Credit for income taxes paid. 
‘‘SEC. 1476. TAX ON BOOK INCOME. 
‘‘(a) IN GENERAL.—In addition to any other tax, in 
the case of a corporation, there is imposed a tax for each 
taxable year on so much of the adjusted net book income 
of the corporation as exceeds $100,000,000. 
‘‘(b) AMOUNT OF TAX.—The amount of tax imposed 
under subsection (a) shall be 7 percent. 
‘‘(c) ADJUSTED NET BOOK INCOME.—For purposes 
of this section— 
‘‘(1) IN
GENERAL.—The term ‘adjusted net 
book income’ means the net income or loss of the 
taxpayer set forth on the taxpayer’s applicable finan-
cial statement as required to be reported (or as 
would have been properly reported if the taxpayer 
were so required) on the taxpayer’s financial state-
ment net income or loss reconciliation for the fiscal 
year ending with or within such taxable year, deter-
mined without regard to the tax imposed by this sec-
tion and adjusted as provided in this subsection. 
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‘‘(2) GROUP
OF
ENTITIES.—For purposes of 
this subsection— 
‘‘(A) if the financial results of a taxpayer 
are reported on the applicable financial state-
ment for a group of entities, such statement 
shall be treated as the applicable financial 
statement of the taxpayer, and 
‘‘(B) if the taxpayer files a consolidated re-
turn for any taxable year, adjusted net book in-
come for such taxable year shall take into ac-
count items on the taxpayer’s applicable finan-
cial statement which are properly allocable to 
members of such group included on such re-
turn. 
‘‘(3) APPLICABLE
FINANCIAL
STATEMENT.— 
For purposes of this subsection, the term ‘applicable 
financial statement’ has the meaning given such 
term under section 451(b)(3). 
‘‘(d) EXCEPTION.—Subsection (a) shall not apply to 
a corporation subject to the tax imposed under subchapter 
M (relating to regulated investment companies and real 
estate investment trusts). 
‘‘(e) APPLICATION TO FOREIGN CORPORATIONS.—In 
the case of a foreign corporation, the tax imposed by sub-
section (a) shall apply only to those items on the tax-
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payer’s applicable financial statement as are properly allo-
cable to the income of the taxpayer which is effectively 
connected with the conduct of a trade or business within 
the United States (as determined under rules similar to 
the rules in section 882). 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations and guidance as necessary to carry out 
the purposes of this section, including regulations and 
guidance related to the application of this section to con-
solidated financial statements. 
‘‘SEC. 1477. CREDIT FOR INCOME TAXES PAID. 
‘‘(a) IN GENERAL.—In the case of a taxpayer other 
than an S corporation, there shall be allowed a credit 
against the tax imposed by section 1476 for any taxable 
year an amount equal to 33 percent of so much of the 
taxpayer’s net regular tax liability for the taxable year as 
exceeds the product of— 
‘‘(1) the highest rate of tax specified in section 
11, and 
‘‘(2) the dollar amount described in section 
1476(a). 
‘‘(b) NET REGULAR TAX LIABILITY.—For purposes 
of this section, the term ‘net regular tax liability’ means 
the regular tax liability imposed under chapter 1 reduced 
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