I 
116TH CONGRESS 
2D SESSION 
H. R. 6992 
To amend the Internal Revenue Code of 1986 to encourage domestic 
insourcing and discourage foreign outsourcing. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 22, 2020 
Mr. PASCRELL (for himself, Mr. DANNY K. DAVIS of Illinois, Ms. SA´NCHEZ, 
Ms. DELBENE, Mr. SWALWELL
of California, Ms. NORTON, Ms. 
BROWNLEY of California, Mrs. WATSON COLEMAN, Ms. BARRAGA´N, Ms. 
LEE of California, and Mr. COHEN) 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 encourage 
domestic insourcing and discourage foreign outsourcing. 
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 ‘‘Bring Jobs Home 
Act’’. 
SEC. 2. CREDIT FOR INSOURCING EXPENSES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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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) ELIGIBLE EXPENSES.—The term ‘eligible 
expenses’ means— 
‘‘(A) any amount for which a deduction is 
allowed to the taxpayer under section 162, and 
‘‘(B) permit and license fees, lease broker-
age fees, equipment installation costs, and, to 
the extent provided by the Secretary, other 
similar expenses. 
Such term does not include any compensation which 
is paid or incurred in connection with severance 
from employment and, to the extent provided by the 
Secretary, any similar amount. 
‘‘(3) BUSINESS UNIT.—The term ‘business unit’ 
means— 
‘‘(A) any trade or business, and 
‘‘(B) any line of business, or functional 
unit, which is part of any trade or business. 
‘‘(4) EXPANDED
AFFILIATED
GROUP.—The 
term ‘expanded affiliated group’ means an affiliated 
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group as defined in section 1504(a), determined 
without regard to section 1504(b)(3) and by sub-
stituting ‘more than 50 percent’ for ‘at least 80 per-
cent’ each place it appears in section 1504(a). A 
partnership or any other entity (other than a cor-
poration) shall be treated as a member of an ex-
panded affiliated group if such entity is controlled 
(within the meaning of section 954(d)(3)) by mem-
bers of such group (including any entity treated as 
a member of such group by reason of this para-
graph). 
‘‘(5) EXPENSES
MUST
BE
PURSUANT
TO 
INSOURCING PLAN.—Amounts shall be taken into ac-
count under paragraph (1) only to the extent that 
such amounts are paid or incurred pursuant to a 
written plan approved the board of directors or au-
thorized officers to carry out the relocation described 
in paragraph (1). 
‘‘(6) OPERATING EXPENSES NOT TAKEN INTO 
ACCOUNT.—Any amount paid or incurred in connec-
tion with the ongoing operation of a business unit 
shall not be treated as an amount paid or incurred 
in connection with the establishment or elimination 
of such business unit. 
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‘‘(c) INCREASED DOMESTIC EMPLOYMENT REQUIRE-
MENT.—No credit shall be allowed under this section un-
less the number of full-time equivalent employees of the 
taxpayer for the taxable year for which the credit is 
claimed exceeds the number of full-time equivalent em-
ployees of the taxpayer for the last taxable year ending 
before the first taxable year in which such eligible 
insourcing expenses were paid or incurred. For purposes 
of this subsection, full-time equivalent employees has the 
meaning given such term under section 45R(d) (and the 
applicable rules of section 45R(e)), determined by only 
taking into account wages (as otherwise defined in section 
45R(e)) paid with respect to services performed within the 
United States. All employers treated as a single employer 
under subsection (b), (c), (m), or (o) of section 414 shall 
be treated as a single employer for purposes of this sub-
section. 
‘‘(d) CREDIT ALLOWED UPON COMPLETION
OF 
INSOURCING PLAN.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), eligible insourcing expenses shall be taken 
into account under subsection (a) in the taxable year 
during which the plan described in subsection (b)(5) 
has been completed and all eligible insourcing ex-
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penses pursuant to such plan have been paid or in-
curred. 
‘‘(2) ELECTION TO APPLY EMPLOYMENT TEST 
AND CLAIM CREDIT IN FIRST FULL TAXABLE YEAR 
AFTER
COMPLETION
OF
PLAN.—If the taxpayer 
elects the application of this paragraph, eligible 
insourcing expenses shall be taken into account 
under subsection (a) in the first taxable year after 
the taxable year described in paragraph (1). 
‘‘(e) POSSESSIONS TREATED
AS PART
OF
THE 
UNITED STATES.—For purposes of this section, the term 
‘United States’ shall be treated as including each posses-
sion of the United States (including the Commonwealth 
of Puerto Rico and the Commonwealth of the Northern 
Mariana Islands). 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out the purposes of this section.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (32), by striking the 
period at the end of paragraph (33) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(34) the insourcing expenses credit determined 
under section 45U(a).’’. 
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(c) CONFORMING AMENDMENTS.— 
(1) Section 280C of such Code is amended by 
adding at the end the following new subsection: 
‘‘(i) CREDIT FOR INSOURCING EXPENSES.—No de-
duction shall be allowed for that portion of the expenses 
otherwise allowable as a deduction taken into account in 
determining the credit under section 45U for the taxable 
year which is equal to the amount of the credit determined 
for such taxable year under section 45U(a).’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45U. Credit for insourcing 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. 
(e) APPLICATION
TO
UNITED
STATES
POSSES-
SIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR
CODE
POSSESSIONS.—The 
Secretary of the Treasury shall make periodic 
payments to the United States Virgin Islands, 
Guam, and the Commonwealth of the Northern 
Mariana Islands in an amount equal to the loss 
to that possession by reason of section 45U of 
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