Tax Credit Restoration Act of 2021

Bill: 117-hr-4639
Sponsor: full_name: Rep. DelBene, Suzan K. [D-WA-1]
Introduced: 2021-07-22
Policy area: Taxation
Latest action: action_date: 2021-07-22
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-07-22
action_desc: Introduced in House
text: <p><strong>Tax Credit Restoration Act of 2021</strong></p> <p>This bill requires the calculation of the base erosion minimum tax amount without regard to any offsetting credits. The base erosion and anti-abuse tax is levied on certain large corporations with deductions for amounts paid or accrued to foreign-related parties that are greater than 3% of their total deductions (2% in the case of certain banks or registered securities dealers).</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 4639 IN THE HOUSE OF REPRESENTATIVES July 22, 2021 Ms. DelBene 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 better coordinate the base erosion and anti-abuse tax with certain credits.

1. Short title This Act may be cited as the Tax Credit Restoration Act of 2021 . 2. Coordination of base erosion and anti-abuse tax with certain credits (a) Base erosion minimum tax amount determined without regard to credits (1) In general Section 59A(b)(1)(B) of the Internal Revenue Code of 1986 is amended to read as follows: (B) an amount equal to the regular tax liability (as defined in section 26(b)) of the taxpayer for the taxable year. . (2) Conforming amendments (A) Section 59A(b)(2) of such Code is amended by striking shall be applied and all that follows and inserting shall be applied by substituting 12.5 percent for 10 percent in subparagraph (A) thereof. . (B) Section 59A(b)(3)(A) of such Code is amended by striking (2)(A) and inserting (2) . (C) Section 59A(b) of such Code is amended by striking paragraph (4). (b) Allowance of general business credit against base erosion and anti-Abuse tax Section 38(c)(1) of such Code is amended by striking the tax imposed by section 55 and inserting the taxes imposed by sections 55 and 59A . (c) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.