come’ means income of the individual that is derived 
from a partnership, S corporation, or sole propri-
etorship which has in effect for the taxable year an 
election under section 5 of the Make America Com-
petitive Again Act. 
‘‘(3) PORTION OF TAXABLE INCOME ATTRIB-
UTABLE.—For purposes of this subsection, the por-
tion of taxable income that is attributable to quali-
fied business income shall be an amount that bears 
the same ratio to taxable income as— 
‘‘(A) qualified business income (reduced by 
any deductions properly allocable thereto), 
bears to 
‘‘(B) gross income (reduced by deductions 
properly allocable thereto). 
For purposes of the preceding sentence, the Sec-
retary shall by regulation prescribe methods for the 
proper allocation of deductions.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 3. ELECTED REPATRIATION OF FOREIGN EARNINGS 
IN UNITED STATES. 
(a) IN GENERAL.—Section 965(a)(1) of the Internal 
Revenue Code of 1986 is amended by inserting ‘‘, which 
VerDate Sep 11 2014 
23:10 May 05, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
has in effect for the taxable year an election under section 
5 of the Make America Competitive Again Act,’’ after 
‘‘which is a United States shareholder’’. 
(b) REPATRIATION SUBJECT
TO 5-PERCENT TAX 
RATE.—Section 965(a)(1) of such Code is amended by 
striking ‘‘85 percent’’ and inserting ‘‘85.7 percent’’. 
(c) PERMANENT EXTENSION TO ELECT REPATRI-
ATION.—Section 965(f) of such Code is amended to read 
as follows: 
‘‘(f) ELECTION.—The taxpayer may elect to apply 
this section to any taxable year only if made on or before 
the due date (including extensions) for filing the return 
of tax for such taxable year.’’. 
(d) REPATRIATION INCLUDES CURRENT AND ACCU-
MULATED FOREIGN EARNINGS.—Section 965(b)(1) of 
such Code is amended to read as follows: 
‘‘(1) IN GENERAL.—The amount of dividends 
taken into account under subsection (a) shall not ex-
ceed the sum of the current and accumulated earn-
ings and profits described in section 959(c)(3) for 
the year a deduction is claimed under subsection (a), 
without diminution by reason of any distributions 
made during the election year, for all controlled for-
eign corporations of the United States shareholder.’’. 
(e) CONFORMING AMENDMENTS.— 
VerDate Sep 11 2014 
23:10 May 05, 2016
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
(1) Section 965(b) of such Code is amended by 
striking paragraphs (2) and (4) and by redesig-
nating paragraph (3) as paragraph (2). 
(2) Section 965(c) of such Code is amended by 
striking paragraphs (1) and (2) and by redesig-
nating paragraphs (3), (4), and (5) as paragraphs 
(1), (2), and (3), respectively. 
(3) Section 965(c)(3) of such Code, as redesig-
nated by subparagraph (B), is amended to read as 
follows: 
‘‘(3) CONTROLLED GROUPS.—All United States 
shareholders which are members of an affiliated 
group filing a consolidated return under section 
1501 shall be treated as one United States share-
holder.’’. 
(4) The heading for section 965 of such Code 
is amended by striking ‘‘TEMPORARY’’. 
(5) The table of sections for subpart F of part 
III of subchapter N of chapter 1 of such Code is 
amended by striking ‘‘Temporary dividends’’ and in-
serting ‘‘Dividends’’. 
(f) TRANSFERS TO HIGHWAY TRUST FUND.—Section 
9503(f) of such Code is amended by redesignating para-
graph (10) as paragraph (11) and by inserting after para-
graph (9) the following new paragraph: 
VerDate Sep 11 2014 
22:40 May 11, 2016
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
‘‘(10) TRANSFER OF REVENUES FROM REPA-
TRIATION HOLIDAY.—There is hereby appropriated 
to the Highway Account (as defined in subsection 
(e)(5)(B)) in the Highway Trust Fund such 
amounts as the Secretary from time to time esti-
mates are equal to the amount of revenue received 
in the Treasury after the date of the enactment of 
this paragraph from income taxes imposed on divi-
dends which are taken into account under section 
965.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 4. ELECTED WAIVER OF CERTAIN TAX EXPENDITURES. 
(a) DOMESTIC PRODUCTIONS ACTIVITIES DEDUC-
TION.— 
(1) IN GENERAL.—Section 199 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(e) WAIVER IN CASE OF MAKE AMERICA COMPETI-
TIVE AGAIN ELECTION.—Subsection (a) shall not apply 
to a taxpayer for any taxable year for which such taxpayer 
has in effect an election under section 5 of the Make 
America Competitive Again Act.’’. 
VerDate Sep 11 2014 
23:10 May 05, 2016
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2015. 
(b) LIKE-KIND EXCHANGES.— 
(1) IN GENERAL.—Section 1031 of such Code 
is amended by adding at the end the following new 
subsection: 
‘‘(j) WAIVER IN CASE OF MAKE AMERICA COMPETI-
TIVE AGAIN ELECTION.—Subsection (a) shall not apply 
to any exchange during any taxable year for which the 
taxpayer has in effect an election under section 5 of the 
Make America Competitive Again Act.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this section shall apply to taxable years beginning 
after December 31, 2015. 
(c) INSTALLMENT SALES.— 
(1) IN GENERAL.—Section 453 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(m) WAIVER IN CASE OF MAKE AMERICA COMPETI-
TIVE AGAIN ELECTION.— 
‘‘(1) IN
GENERAL.—Subsection (a) shall not 
apply with respect to any taxable year for which the 
taxpayer has in effect an election under section 5 of 
the Make America Competitive Again Act. 
VerDate Sep 11 2014 
23:10 May 05, 2016
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
‘‘(2) PRIOR
DISPOSITIONS.—If the taxpayer 
makes an election under such section 5 for a taxable 
year for which income from a disposition of property 
in a prior taxable year would (but for this sub-
section) be taken into account under the installment 
method, the remaining unrecognized income from 
such disposition shall be recognized by the taxpayer 
in the year of such election.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this section shall apply to taxable years beginning 
after December 31, 2015. 
SEC. 5. MAKE AMERICA COMPETITIVE AGAIN ELECTION. 
(a) IN GENERAL.—An eligible employer shall be 
treated as having in effect an election under this section 
for a taxable year if such employer elects the application 
of this section (at such time and in such form and manner 
as the Secretary of the Treasury shall by regulation pre-
scribe) and meets the requirements of paragraphs (1) 
through (4) of subsection (b). 
(b) REQUIREMENTS FOR ELECTION.— 
(1) HEALTH INSURANCE.— 
(A) IN
GENERAL.—The requirements of 
this paragraph shall be treated as met for a 
taxable year if the employer offers to each full- 
time employee (and any dependents) the oppor-
VerDate Sep 11 2014 
23:10 May 05, 2016
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
tunity to enroll in a group health plan or group 
health insurance coverage for all months ending 
during the taxable year, unless the required 
contribution 
(as 
defined 
in 
section 
5000A(e)(1)(B) of the Internal Revenue Code 
of 1986) of any such employee with respect to 
such plan exceeds 9.5 percent of the taxpayer’s 
modified adjusted gross income. 
(B) MODIFIED
ADJUSTED
GROSS
IN-
COME.—The term ‘‘modified adjusted gross in-
come’’ means adjusted gross income increased 
by— 
(i) any amount excluded from gross 
income under section 911, 
(ii) any amount of interest received or 
accrued by the taxpayer during the taxable 
year which is exempt from tax, and 
(iii) an amount equal to the portion of 
the taxpayer’s social security benefits (as 
defined in section 86(d) of such Code) 
which is not included in gross income 
under section 86 for the taxable year. 
(2) DEFINED CONTRIBUTION PLAN.— 
(A) IN
GENERAL.—The requirements of 
this paragraph shall be treated as met for a 
VerDate Sep 11 2014 
23:10 May 05, 2016
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
taxable year if the employer offers to all its full- 
time employees a defined contribution plan 
(within the meaning of section 414(i) of the In-
ternal Revenue Code of 1986) under which the 
employer makes matching contributions on be-
half of each employee in an amount not less 
that 50 percent of so much of elective contribu-
tions of the employee as do not exceed 6 per-
cent of compensation. 
(B) AGE
AND
SERVICE
EXCEPTION.—In 
the case of an employer that maintains a quali-
fied plan or arrangement which excludes em-
ployees who have not satisfied the minimum age 
and service requirements for participation in 
the plan, such employee who has not satisfied 
such requirements. 
(3) PAY INCREASES.— 
(A) IN
GENERAL.—The requirements of 
this paragraph shall be treated as met if the av-
erage increase in wages paid by the employer to 
each applicable employee for the calendar year 
ending with or within the taxable year, com-
pared with wages paid by the employer to each 
such applicable employee for the preceding cal-
endar year, is at least 3 percent. 
VerDate Sep 11 2014 
23:10 May 05, 2016
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
(B) APPLICABLE
EMPLOYEE.—For pur-
poses of this paragraph, the term ‘‘applicable 
employee’’ means, with respect to any employer, 
a full-time employee who is not in the group 
consisting of the top 10 percent of employees 
when ranked on the basis of compensation paid 
during such year. 
(C) WAGES.—For purposes of this para-
graph, the term ‘‘wages’’ shall have the mean-
ing given such term by section 3121 of the In-
ternal Revenue Code of 1986 (determined with-
out regard to any dollar limitation contained in 
such section). 
(D) SPECIAL RULES.— 
(i) COMMISSIONED
EMPLOYEES.—In 
the case of any employee who is paid solely 
on a commission basis, the employer shall 
be treated as meeting the requirements of 
subparagraph (A) only if the employer 
pays the employee (on a noncommission 
basis) an amount equal to 3 percent of 
such employees wages for the preceding 
calendar year. 
(ii) NEW EMPLOYEES.—An employer 
shall not be treated as meeting the require-
VerDate Sep 11 2014 
22:40 May 11, 2016
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
ments of subparagraph (A) with respect to 
any employee who was not employed by the 
employer during the preceding calendar 
year unless the employee’s increase in 
wages paid by the employer for the cal-
endar year is at least $2,500. 
(iii) COST-OF-LIVING ADJUSTMENT.— 
In the case of calendar years beginning 
after December 31, 2017, the $2,500 
amount under clause (ii) shall be increased 
by an amount equal to— 
(I) such dollar amount, multi-
plied by 
(II) the cost-of-living adjustment 
determined under section 1(f)(3) for 
the calendar year, determined by sub-
stituting ‘‘calendar year 2016’’ for 
‘‘calendar year 1992’’ in subpara-
graph (B) thereof. 
(4) DEFINED BENEFIT PLAN; ADDITIONAL SO-
CIAL SECURITY CONTRIBUTIONS.— 
(A) IN
GENERAL.—The requirements of 
this paragraph shall be treated as met for a 
taxable year if, on behalf of each full-time em-
ployee to whom the employer does not offer a 
VerDate Sep 11 2014 
22:40 May 11, 2016
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
defined benefit plan (within the meaning of sec-
tion 414(j) of the Internal Revenue Code of 
1986), the employer makes contributions to the 
Secretary of the Treasury in an amount equal 
to 4.5 percent of the wages (as defined in sec-
tion 3121(a) of such Code) paid by the em-
ployer with respect to employment (as defined 
in section 3121(b) of such Code) during the cal-
endar year. Such contributions shall be made at 
the same time and in the same manner as the 
tax imposed on the employer under section 
3111 of such Code. 
(B) SPECIAL
RULE
FOR
HIGHLY
COM-
PENSATED EMPLOYEES.—In the case of an em-
ployee whose wages (as defined in section 
3121(a) of such Code, determined without re-
gard to any dollar limitation contained in such 
section) paid by the employer with respect to 
employment (as defined in section 3121(b) of 
such Code) exceed $500,000 for the calendar 
year, the employer shall make contributions to 
the Secretary of the Treasury in an amount 
equal to 4.5 percent of such excess, of which— 
(i) 2.5 percent of such excess shall be 
treated for purposes of section 6 of this 
VerDate Sep 11 2014 
23:10 May 05, 2016
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
Act as a contribution made under subpara-
graph (A), and 
(ii) 2.0 percent of such excess shall be 
transferred to the Federal Old-Age and 
Survivors Insurance Trust Fund without 
any corresponding increase in the primary 
insurance amount of such individual. 
(C) INDEPENDENT CONTRACTORS.—In the 
case of an individual who receives remuneration 
from another person for services provided, other 
than as an employee, on more than 130 days 
during the calendar year, for purposes of sub-
paragraph (A), for such calendar year such 
other person shall treat such individual as an 
employee and such remuneration shall be treat-
ed as wages paid with respect to employment. 
(c) DEFINITIONS
AND SPECIAL RULE.—For pur-
poses of this section— 
(1) ELIGIBLE EMPLOYER.—The term ‘‘eligible 
employer’’ means, with respect to any taxable year, 
an employer which has at least 5 full-time employees 
for the taxable year. 
(2) FULL-TIME
EMPLOYEE.—The term ‘‘full- 
time employee’’ means, with respect to any month, 
VerDate Sep 11 2014 
23:10 May 05, 2016
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
an employee who is employed on average at least 30 
hours of service per week. 
(3) UNITED STATES EMPLOYEES ONLY.—Sub-
section (b) shall be applied without regard to any 
employees whose essential job function is outside the 
United States. 
(4) CONTROLLED GROUPS.—All employees who 
are treated as employed by a single employer under 
subsection (b), (c), (m), or (o) of section 414 shall 
be treated as employed by a single employer. 
(5) COLLECTIVE BARGAINING EMPLOYEES EX-
CLUDED.—The employer may exclude from the re-
quirements and determinations made under this sec-
tion employees subject to a collective bargaining 
agreement. 
SEC. 6. ADDITIONAL SOCIAL SECURITY ACCOUNT FUND. 
(a) IN GENERAL.—There is established in the Treas-
ury of the United States a fund to be known as the ‘‘Addi-
tional Social Security Account Fund’’. 
(b) AMOUNTS HELD BY FUND.—Such Fund shall 
consist of amounts equivalent to the sum of all amounts 
paid under section 5(b)(4)(A) of the Make America Com-
petitive Again Act (and any net investment earnings at-
tributable thereto), less any transfer under subsection (c) 
or any distribution permitted under this section. 
VerDate Sep 11 2014 
22:40 May 11, 2016
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
(c) TRANSFER OF ELECTED AMOUNTS TO TRUST 
FUND.—The Secretary of the Treasury shall transfer 
from such Fund to the Federal Old-Age and Survivors In-
surance Trust Fund any amounts paid under section 
5(b)(4)(A) with respect to which the individual on whose 
behalf such amount were paid has elected to be so trans-
ferred and treated under section 215(j) of the Social Secu-
rity Act (42 U.S.C. 415(j)), as added by this Act. Any 
such election shall be made at such time and in such form 
and manner as the Secretary shall prescribe and shall be 
irrevocable. 
(d) MANAGEMENT OF FUND AND ACCOUNTS.— 
(1) IN GENERAL.—The Secretary shall establish 
an Additional Social Security Account program, 
under which— 
(A) amounts in the Fund (and earnings at-
tributable thereto) shall be separately accounted 
for and held for the exclusive benefit of each in-
dividual on whose behalf such amounts were 
contributed, and 
(B) distributions may be made by such in-
dividuals under rules prescribed by the Sec-
retary similar to the rules applicable to a quali-
fied cash or deferred arrangements (within the 
VerDate Sep 11 2014 
23:10 May 05, 2016
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
meaning of section 401(k) of the Internal Rev-
enue Code of 1986). 
(e) TAX TREATMENT OF FUND.— 
(1) IN GENERAL.—For purposes of the Internal 
Revenue Code of 1986, the Additional Social Secu-
rity Account Fund shall be treated as a trust de-
scribed in section 401(a) of such Code which is ex-
empt from taxation under section 501(a) of such 
Code, and any distribution from the Fund under the 
Additional Social Security Account program shall be 
treated in the same manner as a distribution from 
such a trust. 
(2) NO DISTRIBUTIONS DURING FIRST 10 YEARS 
OF FUND.—No distributions may be made from the 
Fund earlier than 10 years after the date of the en-
actment of this Act. 
(3) ROLLOVERS PROHIBITED.—An eligible roll-
over distribution (as defined in section 402(c)(4) of 
such Code) shall not include any amount distributed 
from the Additional Social Security Account. 
(f) INVESTMENT OF FUND.—The Secretary shall ap-
point a Board, which shall provide for the investment of 
amounts which are held on behalf of individuals in the Ad-
ditional Social Security Account Fund. The Board shall 
provide by regulation for the prudent direction of invest-
VerDate Sep 11 2014 
22:40 May 11, 2016
Jkt 059200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
ments of such amounts by such individuals in conservative 
and age appropriate options. 
(g) TRANSFER
AT DEATH.—Individuals may des-
ignate one or more beneficiaries (under such rules as the 
Secretary shall prescribe) to provide for disposition at 
death of any remaining amounts in the Fund held on such 
individual’s behalf. 
SEC. 7. INCREASE OF PRIMARY INSURANCE AMOUNT AS A 
RESULT OF CERTAIN EMPLOYER CONTRIBU-
TIONS. 
Section 215 of the Social Security Act (42 U.S.C. 
415) is amended by adding at the end the following: 
‘‘(j)(1) In the case of an individual on whose behalf 
of contributions have been made under section 5(b)(4)(A) 
of the Make America Competitive Act of 2016, and who 
has made an election under section 6(c) of such Act with 
respect to such contributions, the primary insurance 
amount of such individual otherwise determined under this 
section (without regard to this subsection) shall be com-
puted or recomputed, for months beginning after each 
such contribution, by increasing such primary insurance 
amount as specified under paragraph (2). 
VerDate Sep 11 2014 
22:40 May 11, 2016
Jkt 059200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS
‘‘(2) The increase specified under this paragraph 
shall be determined under regulations issued by the Com-
missioner of Social Security.’’. 
Æ 
VerDate Sep 11 2014 
23:10 May 05, 2016
Jkt 059200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6301
E:\BILLS\H5158.IH
H5158
sradovich on DSK3TPTVN1PROD with BILLS