I 
112TH CONGRESS 
1ST SESSION H. R. 3460 
To amend the Internal Revenue Code of 1986 to allow temporarily a reduced 
rate of tax with respect to repatriated foreign earnings. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 17, 2011 
Ms. BERKLEY (for herself, Mr. MORAN, and Mr. POLIS) 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 allow tem-
porarily a reduced rate of tax with respect to repatriated 
foreign earnings. 
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 ‘‘American Jobs First 
Act of 2011’’. 
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SEC. 2. EXTENSION AND MODIFICATION OF DIVIDENDS RE-
CEIVED DEDUCTION FOR CERTAIN REPATRI-
ATED FOREIGN EARNINGS. 
(a) IN GENERAL.—Section 965 of such Code is 
amended by adding at the end the following new sub-
section: 
‘‘(g) TEMPORARY EXTENSION AND MODIFICATION.— 
‘‘(1) IN GENERAL.—In the case of an election 
under this subsection, subsection (f)(1) shall be ap-
plied by substituting ‘the date of the enactment of 
subsection (g)’ for ‘the date of the enactment of this 
section’. 
‘‘(2) PERCENTAGE DEDUCTIBLE.— 
‘‘(A) IN GENERAL.—In the case of an elec-
tion under this subsection, subsection (a)(1) 
shall be applied by substituting ‘the applicable 
percentage’ for ‘85 percent’. 
‘‘(B) 
APPLICABLE
PERCENTAGE.—For 
purposes of this section, the applicable percent-
age is 29 percent, increased by the number of 
percentage points determined with respect to 
the taxpayer under subparagraph (C). 
‘‘(C) INCREASED
DEDUCTION
FOR
PAY-
ROLL EXPANSION.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (B), the number of percent-
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age points determined with respect to a 
taxpayer under this subparagraph shall 
be— 
‘‘(I) so much of the percentage 
increase, if any, in the taxpayer’s 
qualified payroll for all quarters end-
ing during the taxable year as com-
pared to the qualified payroll for the 
same quarters during the taxpayer’s 
taxable year ending during 2010 as 
does not exceed 14 percent, multiplied 
by 
‘‘(II) 4. 
‘‘(ii) QUALIFIED PAYROLL.—For pur-
poses of this subparagraph, the term 
‘qualified payroll’ means the amount of all 
wages (within the meaning of section 
3121(a)) paid or incurred by the taxpayer 
to the employees of such taxpayer, except 
that, with respect to each such employee, 
such wages shall be taken into account 
only to the extent that such wages do not 
exceed the contribution and benefit base as 
determined under section 230 of the Social 
Security Act. 
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‘‘(iii) RAILWAY LABOR.—In the case 
of remuneration subject to the tax imposed 
by section 3221(a), clause (ii) shall be ap-
plied by substituting ‘all compensation 
(within the meaning of section 3231(e))’ 
for ‘all wages (within the meaning of sec-
tion 3121(a))’. 
‘‘(iv) SPECIAL RULE FOR CONVERTED 
EMPLOYEES.—For purposes of this sub-
paragraph— 
‘‘(I) IN GENERAL.—The wages of 
any specified individual shall not be 
taken into account. 
‘‘(II) SPECIFIED
INDIVIDUAL.— 
Except as provided by the Secretary, 
the term ‘specified individual’ means 
any individual who, during the 2-year 
period ending on the date of the en-
actment of this subsection, performed 
services directly or indirectly for the 
taxpayer and was treated for purposes 
of employment taxes as not an em-
ployee with respect to the performance 
of such services. 
‘‘(3) SPECIAL RULES.— 
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‘‘(A) RECAPTURE
IN
CASE
OF
PAYROLL 
DECREASE DURING RECAPTURE PERIOD.—The 
Secretary shall, by regulations, provide for re-
capturing any portion of the benefit under any 
deduction allowable by this subsection, and at-
tributable to paragraph (2)(C), to the extent— 
‘‘(i) the taxpayer’s qualified payroll 
for all quarters ending during the taxable 
year for which the such deduction was al-
lowed, exceeds 
‘‘(ii) the taxpayer’s qualified payroll 
for all quarters ending during either of the 
2 taxable years following the taxable year 
with respect to which such deduction was 
allowed. 
‘‘(B) CONTROLLED GROUPS.—All employ-
ers treated as a single employer under section 
(a) or (b) of section 52 shall be treated as a 
single employer for purposes of this sub-
section.’’. 
(b) CONFORMING AMENDMENT.— 
(1) Subsection (b) of section 965 of such Code 
is amended by striking paragraph (4). 
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(2) Section 965 of such Code is amended by 
striking ‘‘June 30, 2003’’ each place it occurs and 
inserting ‘‘June 30, 2010’’. 
(3) Subparagraph (B) of section 965(b)(3) of 
such Code is amended by striking ‘‘October 3, 
2004’’ and inserting ‘‘October 1, 2011’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending on or after 
the date of the enactment of this Act 
Æ 
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