I 
113TH CONGRESS 
1ST SESSION H. R. 3793 
To restore full military retirement benefits by closing corporate tax loopholes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 19, 2013 
Mr. MAFFEI (for himself, Mr. CASTRO of Texas, Ms. SHEA-PORTER, Mr. 
SEAN PATRICK MALONEY of New York, Mr. RYAN of Ohio, Mr. COURT-
NEY, Mr. LOEBSACK, Mr. DEFAZIO, Ms. PINGREE of Maine, Mr. HECK 
of Washington, Mr. DOGGETT, Mr. LANGEVIN, Mr. BARBER, Ms. 
GABBARD, Mr. BUTTERFIELD, Ms. WILSON of Florida, Mr. MICHAUD, 
Ms. KUSTER, Mr. VELA, Mr. WALZ, Ms. WASSERMAN SCHULTZ, Mr. 
KILDEE, Ms. HANABUSA, Mr. PETERS of Michigan, Ms. BORDALLO, Mr. 
O’ROURKE, Ms. MICHELLE LUJAN GRISHAM of New Mexico, Mr. GRAY-
SON, Mr. GARAMENDI, Mr. PERLMUTTER, Mrs. BUSTOS, Ms. CASTOR of 
Florida, Ms. SCHWARTZ, Ms. EDWARDS, Mr. TONKO, Mr. BRALEY of 
Iowa, and Mr. LARSON of Connecticut) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Armed Services, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To restore full military retirement benefits by closing 
corporate tax loopholes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Military Retirement 
Restoration Act’’. 
SEC. 2. REPEAL OF REDUCTIONS MADE BY BIPARTISAN 
BUDGET ACT OF 2013. 
Section 403 of the Bipartisan Budget Act of 2013 
is repealed as of the date of the enactment of such Act. 
SEC. 3. TREATMENT OF FOREIGN CORPORATIONS MAN-
AGED AND CONTROLLED IN THE UNITED 
STATES AS DOMESTIC CORPORATIONS. 
(a) IN GENERAL.—Section 7701 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(p) as subsection (q) and by inserting after subsection (o) 
the following new subsection: 
‘‘(p) CERTAIN CORPORATIONS MANAGED AND CON-
TROLLED IN THE UNITED STATES TREATED AS DOMES-
TIC FOR INCOME TAX.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(a)(4), in the case of a corporation described in 
paragraph (2) if— 
‘‘(A) the corporation would not otherwise 
be treated as a domestic corporation for pur-
poses of this title, but 
‘‘(B) the management and control of the 
corporation occurs, directly or indirectly, pri-
marily within the United States, 
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then, solely for purposes of chapter 1 (and any other 
provision of this title relating to chapter 1), the cor-
poration shall be treated as a domestic corporation. 
‘‘(2) CORPORATION DESCRIBED.— 
‘‘(A) IN GENERAL.—A corporation is de-
scribed in this paragraph if— 
‘‘(i) the stock of such corporation is 
regularly traded on an established securi-
ties market, or 
‘‘(ii) the aggregate gross assets of 
such corporation (or any predecessor there-
of), including assets under management 
for investors, whether held directly or indi-
rectly, at any time during the taxable year 
or 
any 
preceding 
taxable 
year 
is 
$50,000,000 or more. 
‘‘(B) GENERAL
EXCEPTION.—A corpora-
tion shall not be treated as described in this 
paragraph if— 
‘‘(i) such corporation was treated as a 
corporation described in this paragraph in 
a preceding taxable year, 
‘‘(ii) such corporation— 
‘‘(I) is not regularly traded on an 
established securities market, and 
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‘‘(II) has, and is reasonably ex-
pected to continue to have, aggregate 
gross assets (including assets under 
management for investors, whether 
held directly or indirectly) of less than 
$50,000,000, and 
‘‘(iii) the Secretary grants a waiver to 
such corporation under this subparagraph. 
‘‘(3) MANAGEMENT AND CONTROL.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
prescribe regulations for purposes of deter-
mining cases in which the management and 
control of a corporation is to be treated as oc-
curring primarily within the United States. 
‘‘(B) EXECUTIVE OFFICERS AND SENIOR 
MANAGEMENT.—Such regulations shall provide 
that— 
‘‘(i) the management and control of a 
corporation shall be treated as occurring 
primarily within the United States if sub-
stantially all of the executive officers and 
senior management of the corporation who 
exercise day-to-day responsibility for mak-
ing decisions involving strategic, financial, 
and operational policies of the corporation 
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