‘‘SEC. 45S. PATRIOT EMPLOYER TAX CREDIT. 
‘‘(a) DETERMINATION OF AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
the Patriot employer credit determined under this 
section with respect to any taxpayer who is a Patriot 
employer for any taxable year shall be equal to 10 
percent of the qualified wages paid or incurred by 
the Patriot employer. 
‘‘(2) LIMITATION.—The amount of qualified 
wages which may be taken into account under para-
graph (1) with respect to any employee for any tax-
able year shall not exceed $15,000. 
‘‘(b) PATRIOT EMPLOYER.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the term ‘Patriot employer’ means, with respect 
to any taxable year, any taxpayer— 
‘‘(A) which— 
‘‘(i) maintains its headquarters in the 
United States if the taxpayer (or any pred-
ecessor) has ever been headquartered in 
the United States, and 
‘‘(ii) is not (and no predecessor of 
which is) an expatriated entity (as defined 
in section 7874(a)(2)) for the taxable year 
or any preceding taxable year ending after 
March 4, 2003, 
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‘‘(B) with respect to which no assessable 
payment has been imposed under section 
4980H with respect to any month occurring 
during the taxable year, and 
‘‘(C) in the case of— 
‘‘(i) a taxpayer which employs an av-
erage of more than 50 employees on busi-
ness days during the taxable year, which— 
‘‘(I) provides compensation for at 
least 90 percent of its employees for 
services provided by such employees 
during the taxable year at an hourly 
rate (or equivalent thereof) not less 
than an amount equal to 156 percent 
of the Federal poverty level for a fam-
ily of three for the calendar year in 
which the taxable year begins divided 
by 2,080, 
‘‘(II) meets the retirement plan 
requirements of subsection (c) with 
respect to at least 90 percent of its 
employees providing services during 
the taxable year who are not highly 
compensated employees, and 
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‘‘(III) meets the additional re-
quirements of subparagraphs (A) and 
(B) of paragraph (2), or 
‘‘(ii) any other taxpayer, which meets 
the requirements of either subclause (I) or 
(II) of clause (i) for the taxable year. 
‘‘(2) ADDITIONAL REQUIREMENTS FOR LARGE 
EMPLOYERS.— 
‘‘(A) UNITED STATES EMPLOYMENT.—The 
requirements of this subparagraph are met for 
any taxable year if— 
‘‘(i) in any case in which the taxpayer 
increases the number of employees per-
forming substantially all of their services 
for the taxable year outside the United 
States, the taxpayer either— 
‘‘(I) increases the number of em-
ployees performing substantially all of 
their services inside the United States 
by an amount not less than the in-
crease in such number for employees 
outside the United States, or 
‘‘(II) has a percentage increase 
in such employees inside the United 
States which is not less than the per-
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centage increase in such employees 
outside the United States, 
‘‘(ii) in any case in which the taxpayer 
decreases the number of employees per-
forming substantially all of their services 
for the taxable year inside the United 
States, the taxpayer either— 
‘‘(I) decreases the number of em-
ployees performing substantially all of 
their services outside the United 
States by an amount not less than the 
decrease in such number for employ-
ees inside the United States, or 
‘‘(II) has a percentage decrease 
in employees outside the United 
States which is not less than the per-
centage decrease in such employees 
inside the United States, and 
‘‘(iii) there is not a decrease in the 
number of employees performing substan-
tially all of their services for the taxable 
year inside the United States by reason of 
the taxpayer contracting out such services 
to persons who are not employees of the 
taxpayer. 
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‘‘(B) TREATMENT OF INDIVIDUALS IN THE 
UNIFORMED SERVICES AND THE DISABLED.— 
The requirements of this subparagraph are met 
for any taxable year if— 
‘‘(i) the taxpayer provides differential 
wage payments (as defined in section 
3401(h)(2)) to each employee described in 
section 3401(h)(2)(A) for any period dur-
ing the taxable year in an amount not less 
than the difference between the wages 
which would have been received from the 
employer during such period and the 
amount of pay and allowances which the 
employee receives for service in the uni-
formed services during such period, and 
‘‘(ii) the taxpayer has in place at all 
times during the taxable year a written 
policy for the recruitment of employees 
who have served in the uniformed services 
or who are disabled. 
‘‘(3) SPECIAL RULES FOR APPLYING THE MIN-
IMUM
WAGE
AND
RETIREMENT
PLAN
REQUIRE-
MENTS.— 
‘‘(A) MINIMUM
WAGE.—In determining 
whether the minimum wage requirements of 
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paragraph (1)(C)(i)(I) are met with respect to 
90 percent of a taxpayer’s employees for any 
taxable year— 
‘‘(i) a taxpayer may elect to exclude 
from such determination apprentices or 
learners that an employer may exclude 
under the regulations under section 14(a) 
of the Fair Labor Standards Act of 1938, 
and 
‘‘(ii) if a taxpayer meets the require-
ments of paragraph (2)(B)(i) with respect 
to providing differential wage payments to 
any employee for any period (without re-
gard to whether such requirements apply 
to the taxpayer), the hourly rate (or equiv-
alent thereof) for such payments shall be 
determined on the basis of the wages which 
would have been paid by the employer dur-
ing such period if the employee had not 
been providing service in the uniformed 
services. 
‘‘(B) RETIREMENT PLAN.—In determining 
whether the retirement plan requirements of 
paragraph (1)(C)(i)(II) are met with respect to 
90 percent of a taxpayer’s employees for any 
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taxable year, a taxpayer may elect to exclude 
from such determination— 
‘‘(i) employees not meeting the age or 
service 
requirements 
under 
section 
410(a)(1) (or such lower age or service re-
quirements as the employer provides), and 
‘‘(ii) employees described in section 
410(b)(3). 
‘‘(c) RETIREMENT PLAN REQUIREMENTS.— 
‘‘(1) IN GENERAL.—The requirements of this 
subsection are met for any taxable year with respect 
to an employee of the taxpayer who is not a highly 
compensated employee if the employee is eligible to 
participate in 1 or more applicable eligible retire-
ment plans maintained by the employer for a plan 
year ending with or within the taxable year. 
‘‘(2) 
APPLICABLE
ELIGIBLE
RETIREMENT 
PLAN.—For purposes of this subsection, the term 
‘applicable eligible retirement plan’ means an eligible 
retirement plan which, with respect to the plan year 
described in paragraph (1), is either— 
‘‘(A) a defined contribution plan which— 
‘‘(i) requires the employer to make 
nonelective contributions of at least 5 per-
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cent of the compensation of the employee, 
or 
‘‘(ii) both— 
‘‘(I) includes an eligible auto-
matic contribution arrangement (as 
defined in section 414(w)(3)) under 
which the uniform percentage de-
scribed in section 414(w)(3)(B) is at 
least 5 percent, and 
‘‘(II) requires the employer to 
make matching contributions of 100 
percent of the elective deferrals (as 
defined in section 414(u)(2)(C)) of 
the employee to the extent such defer-
rals do not exceed the percentage 
specified by the plan (not less than 5 
percent) of the employee’s compensa-
tion, or 
‘‘(B) a defined benefit plan— 
‘‘(i) with respect to which the accrued 
benefit of the employee derived from em-
ployer contributions, when expressed as an 
annual retirement benefit, is not less than 
the product of— 
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‘‘(I) the lesser of 2 percent multi-
plied by the employee’s years of serv-
ice (determined under the rules of 
paragraphs (4), (5), and (6) of section 
411(a)) with the employer or 20 per-
cent, multiplied by 
‘‘(II) the employee’s final average 
pay, or 
‘‘(ii) which is an applicable defined 
benefit 
plan 
(as 
defined 
in 
section 
411(a)(13)(B))— 
‘‘(I) which meets the interest 
credit 
requirements 
of 
section 
411(b)(5)(B)(i) with respect to the 
plan year, and 
‘‘(II) under which the employee 
receives a pay credit for the plan year 
which is not less than 5 percent of 
compensation. 
‘‘(3) DEFINITIONS AND SPECIAL RULES.—For 
purposes of this subsection— 
‘‘(A) ELIGIBLE RETIREMENT PLAN.—The 
term ‘eligible retirement plan’ has the meaning 
given such term by section 402(c)(8)(B), except 
that in the case of an account or annuity de-
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scribed in clause (i) or (ii) thereof, such term 
shall only include an account or annuity which 
is a simplified employee pension (as defined in 
section 408(k)). 
‘‘(B) FINAL AVERAGE PAY.—For purposes 
of paragraph (2)(B)(i)(II), final average pay 
shall be determined using the period of consecu-
tive years (not exceeding 5) during which the 
employee had the greatest compensation from 
the taxpayer. 
‘‘(C) ALTERNATIVE PLAN DESIGNS.—The 
Secretary may prescribe regulations for a tax-
payer to meet the requirements of this sub-
section through a combination of defined con-
tribution plans or defined benefit plans de-
scribed in paragraph (1) or through a combina-
tion of both such types of plans. 
‘‘(D) PLANS MUST MEET REQUIREMENTS 
WITHOUT TAKING INTO ACCOUNT SOCIAL SECU-
RITY AND SIMILAR CONTRIBUTIONS AND BENE-
FITS.—A rule similar to the rule of section 
416(e) shall apply. 
‘‘(d) QUALIFIED WAGES AND COMPENSATION.—For 
purposes of this section— 
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‘‘(1) IN GENERAL.—The term ‘qualified wages’ 
means wages (as defined in section 51(c), deter-
mined without regard to paragraph (4) thereof) paid 
or incurred by the Patriot employer during the tax-
able year to employees— 
‘‘(A) who perform substantially all of their 
services for such Patriot employer inside the 
United States, and 
‘‘(B) with respect to whom— 
‘‘(i) in the case of a Patriot employer 
which employs an average of more than 50 
employees on business days during the tax-
able year, the requirements of subclauses 
(I) and (II) of subsection (b)(1)(C)(i) are 
met, and 
‘‘(ii) in the case of any other Patriot 
employer, the requirements of either sub-
clause (I) or (II) of subsection (b)(1)(C)(i) 
are met. 
‘‘(2) SPECIAL
RULES
FOR
AGRICULTURAL 
LABOR AND RAILWAY LABOR.—Rules similar to the 
rules of section 51(h) shall apply. 
‘‘(3) COMPENSATION.—For purposes of sub-
sections (b)(1)(C)(i)(I) and (c), the term ‘compensa-
tion’ has the same meaning as qualified wages, ex-
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cept that section 51(c)(2) shall be disregarded in de-
termining the amount of such wages. 
‘‘(e) AGGREGATION RULES.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—All persons treated as a 
single employer under subsection (a) or (b) of sec-
tion 52 shall be treated as a single taxpayer. 
‘‘(2) SPECIAL RULES FOR CERTAIN REQUIRE-
MENTS.—For purposes of applying paragraphs 
(1)(A) and (2)(A) of subsection (b)— 
‘‘(A) the determination under subsections 
(a) and (b) of section 52 for purposes of para-
graph (1) shall be made without regard to sec-
tion 1563(b)(2)(C) (relating to exclusion of for-
eign corporations), and 
‘‘(B) if any person treated as a single tax-
payer under this subsection (after application of 
subparagraph (A)), or any predecessor of such 
person, was an expatriated entity (as defined in 
section 7874(a)(2)) for any taxable year ending 
after March 4, 2003, then all persons treated 
as a single taxpayer with such person shall be 
treated as expatriated entities. 
‘‘(f) ELECTION TO HAVE CREDIT NOT APPLY.— 
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‘‘(1) IN GENERAL.—A taxpayer may elect to 
have this section not apply for any taxable year. 
‘‘(2) TIME FOR MAKING ELECTION.—An elec-
tion under paragraph (1) for any taxable year may 
be made (or revoked) at any time before the expira-
tion of the 3-year period beginning on the last date 
prescribed by law for filing the return for such tax-
able year (determined without regard to extensions). 
‘‘(3) MANNER OF MAKING ELECTION.—An elec-
tion under paragraph (1) (or revocation thereof) 
shall be made in such manner as the Secretary may 
by regulations prescribe.’’. 
(b) ALLOWANCE AS GENERAL BUSINESS CREDIT.— 
Section 38(b) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘plus’’ at the end of paragraph (35), 
by striking the period at the end of paragraph (36) and 
inserting ‘‘, plus’’, and by adding at the end the following: 
‘‘(37) in the case of a Patriot employer (as de-
fined in section 45S(b)) for any taxable year, the 
Patriot employer credit determined under section 
45S(a).’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 
of section 280C of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘45S(a),’’ after ‘‘45P(a)’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 3. DEFER DEDUCTION OF INTEREST EXPENSE RE-
LATED TO DEFERRED INCOME. 
(a) IN GENERAL.—Section 163 of the Internal Rev-
enue Code of 1986 (relating to deductions for interest ex-
pense) is amended by redesignating subsection (n) as sub-
section (o) and by inserting after subsection (m) the fol-
lowing new subsection: 
‘‘(n) DEFERRAL OF DEDUCTION FOR INTEREST EX-
PENSE RELATED TO DEFERRED INCOME.— 
‘‘(1) GENERAL RULE.—The amount of foreign- 
related interest expense of any taxpayer allowed as 
a deduction under this chapter for any taxable year 
shall not exceed an amount equal to the applicable 
percentage of the sum of— 
‘‘(A) the taxpayer’s foreign-related interest 
expense for the taxable year, plus 
‘‘(B) the taxpayer’s deferred foreign-re-
lated interest expense. 
For purposes of the paragraph, the applicable per-
centage is the percentage equal to the current inclu-
sion ratio. 
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‘‘(2) 
TREATMENT
OF
DEFERRED
DEDUC-
TIONS.—If, for any taxable year, the amount of the 
limitation determined under paragraph (1) exceeds 
the taxpayer’s foreign-related interest expense for 
the taxable year, there shall be allowed as a deduc-
tion for the taxable year an amount equal to the 
lesser of— 
‘‘(A) such excess, or 
‘‘(B) the taxpayer’s deferred foreign-re-
lated interest expense. 
‘‘(3) DEFINITIONS
AND
SPECIAL
RULE.—For 
purposes of this subsection— 
‘‘(A) FOREIGN-RELATED
INTEREST
EX-
PENSE.—The term ‘foreign-related interest ex-
pense’ means, with respect to any taxpayer for 
any taxable year, the amount which bears the 
same ratio to the amount of interest expense 
for such taxable year allocated and apportioned 
under sections 861, 864(e), and 864(f) to in-
come from sources outside the United States 
as— 
‘‘(i) the value of all stock held by the 
taxpayer in all section 902 corporations 
with respect to which the taxpayer meets 
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the ownership requirements of subsection 
(a) or (b) of section 902, bears to 
‘‘(ii) the value of all assets of the tax-
payer which generate gross income from 
sources outside the United States. 
‘‘(B) DEFERRED
FOREIGN-RELATED
IN-
TEREST EXPENSE.—The term ‘deferred foreign- 
related interest expense’ means the excess, if 
any, of the aggregate foreign-related interest 
expense for all prior taxable years beginning 
after December 31, 2015, over the aggregate 
amount allowed as a deduction under para-
graphs (1) and (2) for all such prior taxable 
years. 
‘‘(C) VALUE OF ASSETS.—Except as other-
wise provided by the Secretary, for purposes of 
subparagraph (A)(ii), the value of any asset 
shall be the amount with respect to such asset 
determined for purposes of allocating and ap-
portioning interest expense under sections 861, 
864(e), and 864(f). 
‘‘(D) CURRENT
INCLUSION
RATIO.—The 
term ‘current inclusion ratio’ means, with re-
spect to any domestic corporation which meets 
the ownership requirements of subsection (a) or 
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(b) of section 902 with respect to one or more 
section 902 corporations for any taxable year, 
the ratio (expressed as a percentage) of— 
‘‘(i) the sum of all dividends received 
by the domestic corporation from all such 
section 902 corporations during the taxable 
year plus amounts includible in gross in-
come under section 951(a) from all such 
section 902 corporations, in each case com-
puted without regard to section 78, divided 
by 
‘‘(ii) the aggregate amount of post- 
1986 undistributed earnings. 
‘‘(E) AGGREGATE AMOUNT OF POST-1986 
UNDISTRIBUTED EARNINGS.—The term ‘aggre-
gate amount of post-1986 undistributed earn-
ings’ means, with respect to any domestic cor-
poration which meets the ownership require-
ments of subsection (a) or (b) of section 902 
with respect to one or more section 902 cor-
porations, the domestic corporation’s pro rata 
share of the post-1986 undistributed earnings 
(as defined in section 902(c)(1)) of all such sec-
tion 902 corporations. 
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‘‘(F) FOREIGN CURRENCY CONVERSION.— 
For purposes of determining the current inclu-
sion ratio, and except as otherwise provided by 
the Secretary, the aggregate amount of post- 
1986 undistributed earnings for the taxable 
year shall be determined by translating each 
section 902 corporation’s post-1986 undistrib-
uted earnings into dollars using the average ex-
change rate for such year. 
‘‘(G) SECTION
902
CORPORATION.—The 
term ‘section 902 corporation’ has the meaning 
given to such term by section 909(d)(5). 
‘‘(4) TREATMENT
OF
AFFILIATED
GROUPS.— 
The current inclusion ratio of each member of an af-
filiated group (as defined in section 864(e)(5)(A)) 
shall be determined as if all members of such group 
were a single corporation. 
‘‘(5) APPLICATION TO SEPARATE CATEGORIES 
OF INCOME.—This subsection shall be applied sepa-
rately with respect to the categories of income speci-
fied in section 904(d)(1). 
‘‘(6) REGULATIONS.—The Secretary may pre-
scribe such regulations or other guidance as is nec-
essary or appropriate to carry out the purposes of 
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