I 
108TH CONGRESS 
2D SESSION 
H. R. 3827 
To amend the Internal Revenue Code of 1986 to protect American jobs. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 25, 2004 
Mr. RANGEL 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 protect 
American jobs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Job Protection Act of 2004’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
(c) TABLE OF CONTENTS.— 
Sec. 1. Short title, etc. 
TITLE I—TRANSITION FROM FSC/ETI BENEFITS TO UNITED 
STATES PRODUCTION BENEFITS 
Sec. 101. Repeal of exclusion for extraterritorial income. 
Sec. 102. Deduction relating to income attributable to United States production 
activities. 
TITLE II—EXTENSION OF INCREASED EXPENSING FOR SMALL 
BUSINESS 
Sec. 201. 2-year extension of increased expensing for small business. 
TITLE III—ENRON-RELATED TAX SHELTER PROVISIONS 
Sec. 301. Limitation on transfer or importation of built-in losses. 
Sec. 302. No reduction of basis under section 734 in stock held by partnership 
in corporate partner. 
Sec. 303. Repeal of special rules for FASITS, etc. 
Sec. 304. Expanded disallowance of deduction for interest on convertible debt. 
Sec. 305. Expanded authority to disallow tax benefits under section 269. 
Sec. 306. Modifications of certain rules relating to controlled foreign corpora-
tions. 
TITLE IV—EXTENSION OF COBRA FEES 
Sec. 401. Cobra fees. 
TITLE 
I—TRANSITION 
FROM 
FSC/ETI BENEFITS TO UNITED 
STATES PRODUCTION BENE-
FITS 
SEC. 101. REPEAL OF EXCLUSION FOR EXTRATERRITORIAL 
INCOME. 
(a) IN GENERAL.—Section 114 of the Internal Rev-
enue Code of 1986 is hereby repealed. 
(b) CONFORMING AMENDMENTS.— 
(1)(A) Subpart E of part III of subchapter N 
of chapter 1 (relating to qualifying foreign trade in-
come) is hereby repealed.
(B) The table of subparts for such part III is 
amended by striking the item relating to subpart E. 
(2) The table of sections for part III of sub-
chapter B of chapter 1 is amended by striking the 
item relating to section 114. 
(3) 
The 
second 
sentence 
of 
section 
56(g)(4)(B)(i) is amended by striking ‘‘or under sec-
tion 114’’. 
(4) Section 275(a) is amended— 
(A) by inserting ‘‘or’’ at the end of para-
graph (4)(A), by striking ‘‘or’’ at the end of 
paragraph (4)(B) and inserting a period, and 
by striking subparagraph (C), and 
(B) by striking the last sentence. 
(5) Paragraph (3) of section 864(e) is amend-
ed— 
(A) by striking: 
‘‘(3) TAX-EXEMPT
ASSETS
NOT
TAKEN
INTO 
ACCOUNT.— 
‘‘(A) IN GENERAL.—For purposes of’’; and 
inserting: 
‘‘(3) TAX-EXEMPT
ASSETS
NOT
TAKEN
INTO 
ACCOUNT.—For purposes of’’, and 
(B) by striking subparagraph (B).
(6) Section 903 is amended by striking ‘‘114, 
164(a),’’ and inserting ‘‘164(a)’’. 
(7) Section 999(c)(1) is amended by striking 
‘‘941(a)(5),’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to transactions occurring 
after the date of the enactment of this Act. 
(2) BINDING
CONTRACTS.—The amendments 
made by this section shall not apply to any trans-
action in the ordinary course of a trade or business 
which occurs pursuant to a binding contract— 
(A) which is between the taxpayer and a 
person who is not a related person (as defined 
in section 943(b)(3) of such Code, as in effect 
on the day before the date of the enactment of 
this Act), and 
(B) which is in effect on September 17, 
2003, and at all times thereafter. 
(d) REVOCATION OF SECTION 943(e) ELECTIONS.— 
(1) IN GENERAL.—In the case of a corporation 
that elected to be treated as a domestic corporation 
under section 943(e) of the Internal Revenue Code 
of 1986 (as in effect on the day before the date of 
the enactment of this Act)—
connection with the activities or items for which 
the fees have been charged under such para-
graphs; and 
(B) the fees collected under such para-
graphs have not exceeded, in the aggregate, the 
amounts paid for the costs described in sub-
section (f)(3)(A) incurred in providing customs 
services in connection with the activities or 
items for which the fees were charged under 
such paragraphs. 
(2) EFFECTIVE PERIOD; STANDARD FOR SET-
TING
FEES.—Section 13031(j)(3) of the Consoli-
dated Omnibus Budget Reconciliation Act of 1985 is 
amended to read as follows: 
‘‘(3)(A) Fees may not be charged under paragraphs 
(9) and (10) of subsection (a) after September 30, 2013. 
‘‘(B)(i) Subject to clause (ii), fees may not be charged 
under paragraphs (1) through (8) of subsection (a) after 
September 30, 2006. 
‘‘(ii) In fiscal year 2006 and in each succeeding fiscal 
year for which fees under paragraphs (1) through (8) of 
subsection (a) are authorized— 
‘‘(I) the Secretary of the Treasury shall charge 
fees under each such paragraph in amounts that are 
reasonably related to the costs of providing customs