I 
118TH CONGRESS 
2D SESSION 
H. R. 8506 
To amend the Internal Revenue Code of 1986 to encourage domestic 
insourcing and discourage foreign outsourcing. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 22, 2024 
Mr. PASCRELL (for himself, Mr. DELUZIO, and Mrs. SYKES) 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 encourage 
domestic insourcing and discourage foreign outsourcing. 
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 ‘‘Bring Jobs Home 
Act’’. 
SEC. 2. CREDIT FOR INSOURCING EXPENSES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
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‘‘SEC. 45BB. CREDIT FOR INSOURCING EXPENSES. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
insourcing expenses credit for any taxable year is an 
amount equal to 20 percent of the eligible insourcing ex-
penses of the taxpayer which are taken into account in 
such taxable year under subsection (d). 
‘‘(b) ELIGIBLE INSOURCING EXPENSES.—For pur-
poses of this section— 
‘‘(1) 
IN
GENERAL.—The 
term 
‘eligible 
insourcing expenses’ means— 
‘‘(A) eligible expenses paid or incurred by 
the taxpayer in connection with the elimination 
of any business unit of the taxpayer (or of any 
member of any expanded affiliated group in 
which the taxpayer is also a member) located 
outside the United States, and 
‘‘(B) eligible expenses paid or incurred by 
the taxpayer in connection with the establish-
ment of any business unit of the taxpayer (or 
of any member of any expanded affiliated group 
in which the taxpayer is also a member) located 
within the United States, 
if such establishment constitutes the relocation of 
business unit so eliminated. For purposes of the pre-
ceding sentence, a relocation shall not be treated as 
failing to occur merely because such elimination oc-
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curs in a different taxable year than such establish-
ment. 
‘‘(2) ELIGIBLE EXPENSES.—The term ‘eligible 
expenses’ means— 
‘‘(A) any amount for which a deduction is 
allowed to the taxpayer under section 162, and 
‘‘(B) permit and license fees, lease broker-
age fees, equipment installation costs, and, to 
the extent provided by the Secretary, other 
similar expenses. 
Such term does not include any compensation which 
is paid or incurred in connection with severance 
from employment and, to the extent provided by the 
Secretary, any similar amount. 
‘‘(3) BUSINESS UNIT.—The term ‘business unit’ 
means— 
‘‘(A) any trade or business, and 
‘‘(B) any line of business, or functional 
unit, which is part of any trade or business. 
‘‘(4) EXPANDED
AFFILIATED
GROUP.—The 
term ‘expanded affiliated group’ means an affiliated 
group as defined in section 1504(a), determined 
without regard to section 1504(b)(3) and by sub-
stituting ‘more than 50 percent’ for ‘at least 80 per-
cent’ each place it appears in section 1504(a). A 
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partnership or any other entity (other than a cor-
poration) shall be treated as a member of an ex-
panded affiliated group if such entity is controlled 
(within the meaning of section 954(d)(3)) by mem-
bers of such group (including any entity treated as 
a member of such group by reason of this para-
graph). 
‘‘(5) EXPENSES
MUST
BE
PURSUANT
TO 
INSOURCING PLAN.—Amounts shall be taken into ac-
count under paragraph (1) only to the extent that 
such amounts are paid or incurred pursuant to a 
written plan approved by the board of directors or 
authorized officers to carry out the relocation de-
scribed in paragraph (1). 
‘‘(6) OPERATING EXPENSES NOT TAKEN INTO 
ACCOUNT.—Any amount paid or incurred in connec-
tion with the ongoing operation of a business unit 
shall not be treated as an amount paid or incurred 
in connection with the establishment or elimination 
of such business unit. 
‘‘(c) INCREASED DOMESTIC EMPLOYMENT REQUIRE-
MENT.—No credit shall be allowed under this section un-
less the number of full-time equivalent employees of the 
taxpayer for the taxable year for which the credit is 
claimed exceeds the number of full-time equivalent em-
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ployees of the taxpayer for the last taxable year ending 
before the first taxable year in which such eligible 
insourcing expenses were paid or incurred. For purposes 
of this subsection, full-time equivalent employees has the 
meaning given such term under section 45R(d) (and the 
applicable rules of section 45R(e)), determined by only 
taking into account wages (as otherwise defined in section 
45R(e)) paid with respect to services performed within the 
United States. All employers treated as a single employer 
under subsection (b), (c), (m), or (o) of section 414 shall 
be treated as a single employer for purposes of this sub-
section. 
‘‘(d) CREDIT ALLOWED UPON COMPLETION
OF 
INSOURCING PLAN.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), eligible insourcing expenses shall be taken 
into account under subsection (a) in the taxable year 
during which the plan described in subsection (b)(5) 
has been completed and all eligible insourcing ex-
penses pursuant to such plan have been paid or in-
curred. 
‘‘(2) ELECTION TO APPLY EMPLOYMENT TEST 
AND CLAIM CREDIT IN FIRST FULL TAXABLE YEAR 
AFTER
COMPLETION
OF
PLAN.—If the taxpayer 
elects the application of this paragraph, eligible 
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insourcing expenses shall be taken into account 
under subsection (a) in the first taxable year after 
the taxable year described in paragraph (1). 
‘‘(e) POSSESSIONS TREATED
AS PART
OF
THE 
UNITED STATES.—For purposes of this section, the term 
‘United States’ shall be treated as including each posses-
sion of the United States (including the Commonwealth 
of Puerto Rico and the Commonwealth of the Northern 
Mariana Islands). 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out the purposes of this section.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (40), by striking the 
period at the end of paragraph (41) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(42) the insourcing expenses credit determined 
under section 45BB(a).’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 280C of such Code is amended by 
adding at the end the following new subsection: 
‘‘(i) CREDIT FOR INSOURCING EXPENSES.—No de-
duction shall be allowed for that portion of the expenses 
otherwise allowable as a deduction taken into account in 
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determining the credit under section 45BB for the taxable 
year which is equal to the amount of the credit determined 
for such taxable year under section 45BB(a).’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45BB. Credit for insourcing expenses.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
(e) APPLICATION
TO
UNITED
STATES
POSSES-
SIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR
CODE
POSSESSIONS.—The 
Secretary of the Treasury shall make periodic 
payments to the United States Virgin Islands, 
Guam, and the Commonwealth of the Northern 
Mariana Islands in an amount equal to the loss 
to that possession by reason of section 45BB of 
the Internal Revenue Code of 1986. Such 
amount shall be determined by the Secretary of 
the Treasury based on information provided by 
the government of the respective possession. 
(B) OTHER POSSESSIONS.—The Secretary 
of the Treasury shall make annual payments to 
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the Commonwealth of Puerto Rico and Amer-
ican Samoa in an amount estimated by the Sec-
retary of the Treasury as being equal to the ag-
gregate benefits that would have been provided 
to residents of each such possession by reason 
of section 45BB of such Code if a mirror code 
tax system had been in effect in such posses-
sion. The preceding sentence shall not apply 
with respect to any possession of the United 
States unless such possession has a plan, which 
has been approved by the Secretary of the 
Treasury, under which such possession will 
promptly distribute such payment to the resi-
dents of such possession. 
(2) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No cred-
it shall be allowed against United States income 
taxes under section 45BB of such Code to any per-
son— 
(A) to whom a credit is allowed against 
taxes imposed by the possession by reason of 
such section, or 
(B) who is eligible for a payment under a 
plan described in paragraph (1)(B). 
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(3) TREATMENT OF PAYMENTS.—For purposes 
of section 1324(b)(2) of title 31, United States 
Code, the payments under this section shall be treat-
ed in the same manner as a refund due from sec-
tions referred to in such section 1324(b)(2). 
SEC. 3. DENIAL OF DEDUCTION FOR OUTSOURCING EX-
PENSES. 
(a) IN GENERAL.—Part IX of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new section: 
‘‘SEC. 280I. OUTSOURCING EXPENSES. 
‘‘(a) IN GENERAL.—No deduction otherwise allow-
able under this chapter shall be allowed for any specified 
outsourcing expense. 
‘‘(b) SPECIFIED OUTSOURCING EXPENSE.—For pur-
poses of this section— 
‘‘(1) IN
GENERAL.—The term ‘specified out-
sourcing expense’ means— 
‘‘(A) any eligible expense paid or incurred 
by the taxpayer in connection with the elimi-
nation of any business unit of the taxpayer (or 
of any member of any expanded affiliated group 
in which the taxpayer is also a member) located 
within the United States, and 
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‘‘(B) any eligible expense paid or incurred 
by the taxpayer in connection with the estab-
lishment of any business unit of the taxpayer 
(or of any member of any expanded affiliated 
group in which the taxpayer is also a member) 
located outside the United States, 
if such establishment constitutes the relocation of 
business unit so eliminated. For purposes of the pre-
ceding sentence, a relocation shall not be treated as 
failing to occur merely because such elimination oc-
curs in a different taxable year than such establish-
ment. 
‘‘(2) APPLICATION
OF
CERTAIN
DEFINITIONS 
AND RULES.— 
‘‘(A) DEFINITIONS.—For purposes of this 
section, the terms ‘eligible expenses’, ‘business 
unit’, and ‘expanded affiliated group’ shall have 
the respective meanings given such terms by 
section 45BB(b). 
‘‘(B) OPERATING EXPENSES NOT TAKEN 
INTO ACCOUNT.—A rule similar to the rule of 
section 45BB(b)(6) shall apply for purposes of 
this section. 
‘‘(c) SPECIAL RULES.— 
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‘‘(1) APPLICATION
TO
DEDUCTIONS
FOR
DE-
PRECIATION
AND
AMORTIZATION.—In the case of 
any portion of a specified outsourcing expense which 
is not deductible in the taxable year in which paid 
or incurred, such portion shall neither be chargeable 
to capital account nor amortizable. 
‘‘(2) POSSESSIONS TREATED AS PART OF THE 
UNITED STATES.—For purposes of this section, the 
term ‘United States’ shall be treated as including 
each possession of the United States (including the 
Commonwealth of Puerto Rico and the Common-
wealth of the Northern Mariana Islands). 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out the purposes of this section, 
including regulations which provide (or create a rebuttable 
presumption) that certain establishments of business units 
outside the United States will be treated as relocations 
(based on timing or such other factors as the Secretary 
may provide) of business units eliminated within the 
United States.’’. 
(b) LIMITATION ON SUBPART F INCOME OF CON-
TROLLED FOREIGN CORPORATIONS DETERMINED WITH-
OUT REGARD TO SPECIFIED OUTSOURCING EXPENSES.— 
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Section 952(c) of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(4) EARNINGS
AND
PROFITS
DETERMINED 
WITHOUT REGARD TO SPECIFIED OUTSOURCING EX-
PENSES.—For purposes of this subsection, earnings 
and profits of any controlled foreign corporation 
shall be determined without regard to any specified 
outsourcing 
expense 
(as 
defined 
in 
section 
280I(b)).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part IX of subchapter B of chapter 1 of such Code 
is amended by adding at the end the following new item: 
‘‘Sec. 280I. Outsourcing expenses.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
SEC. 4. REINSTATEMENT OF DEDUCTION FOR MOVING EX-
PENSES. 
(a) IN GENERAL.—Section 217 of the Internal Rev-
enue Code of 1986 is amended by striking subsection (k). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Æ 
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