Title: Bring Jobs Home Act
Policy area: Taxation

Summary:
Bring Jobs Home Act
This bill amends the Internal Revenue Code to: (1) grant business taxpayers a tax credit for up to 20% of insourcing expenses incurred for eliminating a business located outside the United States and  relocating it within the United States, and (2) deny a tax deduction for outsourcing expenses incurred in relocating a U.S. business outside the United States. The bill requires an increase in the taxpayer's employment of full-time employees in the United States in order to claim the tax credit for insourcing expenses.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 247 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 247

 To provide an incentive for businesses to bring jobs back to America.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 30, 2017

 Ms. Stabenow (for herself, Mr. Whitehouse, Ms. Baldwin, Mrs. Shaheen, 
 Mr. Reed, Mr. Blumenthal, Ms. Klobuchar, Mr. Brown, Mr. Durbin, Mrs. 
 McCaskill, Mrs. Gillibrand, Mr. Peters, and Mr. Menendez) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
 To provide an incentive for businesses to bring jobs back to America.

    Be it enacted by the Senate and House of Representatives 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 subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45S. CREDIT FOR INSOURCING EXPENSES.

    ``(a) In General.--For purposes of section 38, the insourcing 
expenses credit for any taxable year is an amount equal to 20 percent 
of the eligible insourcing expenses of the taxpayer which are taken 
into account in such taxable year under subsection (d).
    ``(b) Eligible Insourcing Expenses.--For purposes of this section--
            ``(1) In general.--The term `eligible insourcing expenses' 
        means--
                    ``(A) eligible expenses paid or incurred by the 
                taxpayer in connection with the elimination 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, and
                    ``(B) eligible expenses paid or incurred by the 
                taxpayer in connection with the establishment 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,
        if such establishment constitutes the relocation of the 
        business unit so eliminated. For purposes of the preceding 
        sentence, a relocation shall not be treated as failing to occur 
        merely because such elimination occurs in a different taxable 
        year than such establishment.
            ``(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 brokerage 
                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 group as defined in 
        section 1504(a), determined without regard to section 
        1504(b)(3) and by substituting `more than 50 percent' for `at 
        least 80 percent' each place it appears in section 1504(a). A 
        partnership or any other entity (other than a corporation) 
        shall be treated as a member of an expanded affiliated group if 
        such entity is controlled (within the meaning of section 
        954(d)(3)) by members of such group (including any entity 
        treated as a member of such group by reason of this paragraph).
            ``(5) Expenses must be pursuant to insourcing plan.--
        Amounts shall be taken into account under paragraph (1) only to 
        the extent that such amounts are paid or incurred pursuant to a 
        written plan to carry out the relocation described in paragraph 
        (1).
            ``(6) Operating expenses not taken into account.--Any 
        amount paid or incurred in connection with the on-going 
        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.
    ``(c) Increased Domestic Employment Requirement.--No credit shall 
be allowed under this section unless 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 employees 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)). 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 subsection.
    ``(d) Credit Allowed Upon Completion of Insourcing Plan.--
            ``(1) In general.--Except as provided in paragraph (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 expenses pursuant to such plan have been 
        paid or incurred.
            ``(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 possession 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.--Subsection (b) 
of section 38 of such Code is amended by striking ``plus'' at the end 
of paragraph (35), by striking the period at the end of paragraph (36) 
and inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(37) the insourcing expenses credit determined under 
        section 45S(a).''.
    (c) Clerical Amendment.--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. 45S. 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 Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possessions.--The Secretary of the 
                Treasury shall make periodic payments to each 
                possession of the United States with a mirror code tax 
                system in an amount equal to the loss to that 
                possession by reason of section 45S of 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 each possession 
                of the United States which does not have a mirror code 
                tax system in an amount estimated by the Secretary of 
                the Treasury as being equal to the aggregate benefits 
                that would have been provided to residents of such 
                possession by reason of section 45S of such Code if a 
                mirror code tax system had been in effect in such 
                possession. 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 
                residents of such possession.
            (2) Coordination with credit allowed against united states 
        income taxes.--No credit shall be allowed against United States 
        income taxes under section 45S of such Code to any person--
                    (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) Definitions and special rules.--
                    (A) Possessions of the united states.--For purposes 
                of this section, the term ``possession of the United 
                States'' includes the Commonwealth of Puerto Rico and 
                the Commonwealth of the Northern Mariana Islands.
                    (B) Mirror code tax system.--For purposes of this 
                section, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324(b)(2) of title 31, United States Code, the 
                payments under this section shall be treated in the 
                same manner as a refund due from sections referred to 
                in such section 1324(b)(2).

SEC. 3. DENIAL OF DEDUCTION FOR OUTSOURCING EXPENSES.

    (a) In General.--Part IX of subchapter B of chapter 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 allowable under this 
chapter shall be allowed for any specified outsourcing expense.
    ``(b) Specified Outsourcing Expense.--For purposes of this 
section--
            ``(1) In general.--The term `specified outsourcing expense' 
        means--
                    ``(A) any eligible expense paid or incurred by the 
                taxpayer in connection with the elimination 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 establishment 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 the 
        business unit so eliminated. For purposes of the preceding 
        sentence, a relocation shall not be treated as failing to occur 
        merely because such elimination occurs in a different taxable 
        year than such establishment.
            ``(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 45S(b).
                    ``(B) Operating expenses not taken into account.--A 
                rule similar to the rule of section 45S(b)(6) shall 
                apply for purposes of this section.
    ``(c) Special Rules.--
            ``(1) Application to deductions for depreciation 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 Commonwealth 
        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.''.
    (b) Limitation on Subpart F Income of Controlled Foreign 
Corporations Determined Without Regard to Specified Outsourcing 
Expenses.--Subsection (c) of section 952 of such Code is amended by 
adding at the end the following new paragraph:
            ``(4) Earnings and profits determined without regard to 
        specified outsourcing expenses.--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.
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