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 
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 45U 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 45U of such Code to any per-
son— 
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(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). 
(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-
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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 
‘‘(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 45U(b). 
‘‘(B) OPERATING EXPENSES NOT TAKEN 
INTO ACCOUNT.—A rule similar to the rule of 
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section 45U(b)(6) shall apply for purposes of 
this section. 
‘‘(c) SPECIAL RULES.— 
‘‘(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.’’. 
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(b) LIMITATION ON SUBPART F INCOME OF CON-
TROLLED FOREIGN CORPORATIONS DETERMINED WITH-
OUT REGARD TO SPECIFIED OUTSOURCING EXPENSES.— 
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). 
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(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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