American Jobs for American Infrastructure Act - Amends the Internal Revenue Code to appropriate to the Highway Account and Mass Transit Account of the Highway Trust Fund for FY2014-FY2018 amounts necessary to ensure that the balance of each Account for any quarter is not less than specified levels.
Declares the sense of Congress that Congress should provide annual inflation increases for the Federal Lands Access Program, the Federal Lands Transportation Program, and the Tribal Transportation Program in the next Surface Transportation reauthorization.
Establishes in the Treasury a Reclamation Water Infrastructure Fund, to be administered by the Secretary of the Interior and used for: (1) rural water projects; (2) deferred maintenance of certain Indian irrigation projects; and (3) construction, planning, and design of projects to settle Indian reserved water rights.
Establishes in the Treasury an Energy Upgrade and Retrofit Infrastructure Fund, to be administered by the Secretary of Energy (DOE) and used to: (1) support novel and innovative technologies to capture or prevent carbon dioxide emissions, as well as enable the beneficial use and long-term storage of carbon dioxide; and (2) fund certain commercial-scale, coal-fired electric generation units.
Amends the Internal Revenue Code of 1986 to make a special rule to prohibit income deductions allocated to deferred foreign income from offsetting U.S. source income.
Requires foreign-related deductions to be allocated to currently-taxed foreign income in the same proportion which currently-taxed foreign income bears to the sum of currently-taxed foreign income and deferred foreign income.
Revises rules related to inverted domestic corporations (which used to be incorporated in the United States, or used to be a partnership in the United States, but now are incorporated in a foreign country, or are subsidiaries whose parent corporations are incorporated in a foreign country).
Treats as an inverted domestic corporation, for income tax purposes, any foreign corporation (entity) which after May 8, 2014, completes the direct or indirect acquisition of substantially all of the properties or assets of a domestic corporation, and after the acquisition either: (1) more than 50% (currently, in different specified circumstances, 60% or 80%) of the entity's stock is held by former shareholders of the domestic corporation by reason of holding stock in that domestic corporation; or (2) the management and control of the expanded affiliated group which includes the entity occurs, directly or indirectly, primarily within the United States, and the expanded affiliated group has significant domestic business activities. Applies similar rules to an entity's acquisition of a domestic partnership.
Dedicates to deficit reduction $1 billion of any increase in revenue to the Treasury by reason of this Act.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2489 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2489
To amend the Internal Revenue Code of 1986 to ensure that sufficient
funding is made available for the Highway Trust Fund, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 18, 2014
Mr. Walsh introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to ensure that sufficient
funding is made available for the Highway Trust Fund, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American Jobs for
American Infrastructure Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--HIGHWAY TRUST FUND
Sec. 101. Ensuring sufficient funding for the Highway Trust Fund.
Sec. 102. Sense of Congress regarding the Surface Transportation
reauthorization.
TITLE II--WATER INFRASTRUCTURE
Sec. 201. Reclamation Water Infrastructure Fund.
Sec. 202. Sense of Congress regarding direction of Secretary of the
Interior.
TITLE III--ENERGY INFRASTRUCTURE
Sec. 301. Energy Upgrade and Retrofit Infrastructure Fund.
Sec. 302. Sense of Congress regarding direction of Secretary of Energy.
TITLE IV--TAXATION OF FOREIGN INCOME
Sec. 401. Allocation of expenses and taxes on basis of repatriation of
foreign income.
Sec. 402. Modifications to rules relating to inverted corporations.
TITLE V--DEFICIT REDUCTION
Sec. 501. Deficit reduction.
TITLE I--HIGHWAY TRUST FUND
SEC. 101. ENSURING SUFFICIENT FUNDING FOR THE HIGHWAY TRUST FUND.
(a) In General.--Section 9503(f) of the Internal Revenue Code of
1986 is amended by redesignating paragraph (5) as paragraph (6) and by
inserting after paragraph (4) the following new paragraph:
``(5) Ensuring adequate balances in highway account and
mass transit account.--For the period of fiscal years 2014
through 2018, out of money in the Treasury not otherwise
appropriated, there are hereby appropriated--
``(A) in the case of the Highway Account (as
defined in subsection (e)(5)(B)) in the Highway Trust
Fund, such amounts as are determined by the Secretary
to be necessary to ensure that the balance of such
account is not less than $4,000,000,000 for any quarter
during such period, and
``(B) in the case of the Mass Transit Account in
the Highway Trust Fund, such amounts as are determined
by the Secretary to be necessary to ensure that the
balance of such account is not less than $1,000,000,000
for any quarter during such period.''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 102. SENSE OF CONGRESS REGARDING THE SURFACE TRANSPORTATION
REAUTHORIZATION.
It is the sense of Congress that Congress should provide annual
inflation increases for the Federal Lands Access Program, the Federal
Lands Transportation Program, and the Tribal Transportation Program in
the next Surface Transportation reauthorization.
TITLE II--WATER INFRASTRUCTURE
SEC. 201. RECLAMATION WATER INFRASTRUCTURE FUND.
(a) Establishment of Fund.--There is established in the Treasury a
fund to be known as the ``Reclamation Water Infrastructure Fund''
(referred to in this section as the ``Fund''), to be administered by
the Secretary of the Interior, to be available without fiscal year
limitation and not subject to appropriation, for use in accordance with
subsection (e).
(b) Deposits.--For the period of fiscal years 2015 through 2036,
the Secretary of the Treasury shall deposit in the Fund--
(1) of the revenues that would otherwise be deposited for
each fiscal year in the reclamation fund established by the
first section of the Act of June 17, 1902 (32 Stat. 388,
chapter 1093), $150,000,000; and
(2) out of amounts in the Treasury not otherwise obligated,
$6,500,000,000.
(c) Investment.--
(1) In general.--The Secretary of the Treasury shall invest
such portion of the Fund as is not, in the judgment of the
Secretary, required to meet current withdrawals.
(2) Credits to fund.--The interest on, and the proceeds
from the sale or redemption of, any obligations held in the
Fund shall be credited to, and form a part of, the Fund.
(d) Prohibition.--Amounts in the Fund may not be made available for
any purpose other than a purpose described in subsection (e).
(e) Use of Funds.--The Secretary of the Interior may use amounts in
the Fund for the following purposes:
(1) Rural water projects.--To complete construction (but
not including operation or maintenance) of rural water
projects--
(A) that were authorized to be carried out by the
Secretary on or before the date of enactment of this
Act; or
(B) for which--
(i) pursuant to section 106(e) of the Rural
Water Supply Act of 2006 (43 U.S.C. 2405(e)), a
feasibility study has been submitted to the
Secretary by not later than December 31, 2015;
and
(ii) an Act enacted after the date of
enactment of this Act authorizes construction.
(2) Deferred maintenance of indian irrigation projects.--To
address deferred maintenance needs of Indian irrigation
projects (including maintenance, repair, and replacement
activities for any structures, facilities, equipment, or
vehicles used in connection with the operation of those
projects) that, on the date of enactment of this Act--
(A) are owned by the Federal Government, as listed
in the Federal inventory required by Executive Order
13327 (40 U.S.C. 121 note; relating to Federal real
property asset management);
(B) are managed by the Bureau of Indian Affairs
(including projects managed under contracts or compacts
pursuant to the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450 et seq.)); and
(C) have deferred maintenance documented by the
Bureau of Indian Affairs.
(3) Indian reserved water rights settlements.--To provide
amounts to complete construction, planning, and design of any
project, or to implement any provision of Federal law, that--
(A) settles or otherwise resolves, in whole or in
part, litigation involving the United States and the
rights of one or more federally recognized Indian
tribes to access, use, or manage water resources; or
(B) implements an agreement approved by Congress
pursuant to which one or more federally recognized
Indian tribes agree to some limitation on the exercise
of rights or claims to access, use, or manage water
resources.
(f) Annual Reports.--
(1) In general.--Not later than 60 days after the end of
each fiscal year beginning with fiscal year 2015, the Secretary
of the Interior shall submit to the Committee on Appropriations
of the House of Representatives, the Committee on
Appropriations of the Senate, and authorizing committees a
report on the operation of the Fund during the fiscal year.
(2) Contents.--Each report shall include, for the fiscal
year covered by the report, the following:
(A) A statement of the amounts deposited into the
Fund.
(B) A description of the expenditures made from the
Fund for the fiscal year, including the purpose of the
expenditures.
(C) Recommendations for additional authorities to
fulfill the purpose of the Fund.
(D) A statement of the balance remaining in the
Fund at the end of the fiscal year.
SEC. 202. SENSE OF CONGRESS REGARDING DIRECTION OF SECRETARY OF THE
INTERIOR.
It is the sense of Congress that Congress should provide direction
to the Secretary of the Interior with respect to expenditures under
this title, including--
(1) requirements under the annual budget submission of the
President;
(2) annual reporting requirements describing final
allocations;
(3) programmatic goals to carry out this title; and
(4) funding prioritization criteria to serve as a
methodology for distributing funds.
TITLE III--ENERGY INFRASTRUCTURE
SEC. 301. ENERGY UPGRADE AND RETROFIT INFRASTRUCTURE FUND.
(a) Establishment of Fund.--There is established in the Treasury a
fund to be known as the ``Energy Upgrade and Retrofit Infrastructure
Fund'' (referred to in this section as the ``Fund''), to be
administered by the Secretary of Energy, to be available without fiscal
year limitation and not subject to appropriation, for use in accordance
with subsection (e).
(b) Deposits.--For the period of fiscal years 2015 through 2034,
the Secretary of the Treasury shall deposit in the Fund, out of amounts
in the Treasury not otherwise obligated, $8,000,000,000.
(c) Investment.--
(1) In general.--The Secretary of the Treasury shall invest
such portion of the Fund as is not, in the judgment of the
Secretary, required to meet current withdrawals.
(2) Credits to fund.--The interest on, and the proceeds
from the sale or redemption of, any obligations held in the
Fund shall be credited to, and form a part of, the Fund.
(d) Prohibition.--Amounts in the Fund may not be made available for
any purpose other than a purpose described in subsection (e).
(e) Use of Funds.--
(1) In general.--Of amounts in the Fund, the Secretary of
Energy may use, in accordance with this title, such sums as are
necessary to provide grants, loans, loan guarantees, or other
credit financing instruments, including any such instruments
under the Energy Policy Act of 2005 (42 U.S.C. 15801 et seq.),
to support novel and innovative technologies that--
(A) capture or prevent carbon dioxide emissions
from carbon-based fuels;
(B) enable the beneficial use of carbon dioxide and
other greenhouse gases;
(C) enable the long-term storage of carbon dioxide;
(D) reduce net carbon emissions from the fleet of
electric generation units in a State or region of the
bulk electric system; or
(E) construct, upgrade, or retrofit electric
transmission property that serves the public interest
by facilitating the deployment of low-carbon energy
sources while ensuring reliability and reducing
congestion.
(2) Prioritization.--In carrying out paragraph (1), the
Secretary of Energy shall give priority to projects that
upgrade or retrofit existing infrastructure for the generation
and transmission of electric power.
(3) Commercial-scale coal technology.--
(A) Expenditure.--Not less than 60 percent of
amounts expended under this subsection shall be for
commercial-scale, coal-fired electric generation
units--
(i) designed to generate and sell electric
power directly to consumers or for resale; and
(ii) with a carbon dioxide capture and
storage system having a useful life of not
fewer than 15 years.
(B) Eligible projects.--Eligible projects under
this paragraph include projects for--
(i) the construction of new coal-fired
electric generation units;
(ii) the retrofitting of existing coal-
fired electric generation units; or
(iii) the construction of carbon dioxide
transmission pipelines to transport carbon
dioxide from carbon capture and sequestration
facilities to--
(I) sequestration sites; or
(II) sites at which the carbon
dioxide will be used for hydrocarbon
recovery.
(f) Annual Reports.--
(1) In general.--Not later than 60 days after the end of
each fiscal year beginning with fiscal year 2015, the Secretary
of Energy shall submit to the Committee on Appropriations of
the House of Representatives, the Committee on Appropriations
of the Senate, and authorizing committees a report on the
operation of the Fund during the fiscal year.
(2) Contents.--Each report shall include, for the fiscal
year covered by the report, the following:
(A) A statement of the amounts deposited into the
Fund.
(B) A description of the expenditures made from the
Fund for the fiscal year, including the purpose of the
expenditures.
(C) Recommendations for additional authorities to
fulfill the purpose of the Fund.
(D) A statement of the balance remaining in the
Fund at the end of the fiscal year.
SEC. 302. SENSE OF CONGRESS REGARDING DIRECTION OF SECRETARY OF ENERGY.
It is the sense of Congress that Congress should provide direction
to the Secretary of Energy with respect to effects of expenditures
under this title on other applicable Federal programs and laws,
including--
(1) provisions of the Internal Revenue Code of 1986 that
affect electric power generation and transmission;
(2) existing standards with respect to the percentage of
carbon dioxide required to be captured and stored by projects
that receive Federal funds; and
(3) liability standards with respect to the long-term
storage of carbon dioxide.
TITLE IV--TAXATION OF FOREIGN INCOME
SEC. 401. ALLOCATION OF EXPENSES AND TAXES ON BASIS OF REPATRIATION OF
FOREIGN INCOME.
(a) In General.--Part III of subchapter N of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after subpart G
the following new subpart:
``Subpart H--Special Rules for Allocation of Foreign-Related Deductions
``Sec. 975. Deductions allocated to deferred foreign income may not
offset United States source income.
``SEC. 975. DEDUCTIONS ALLOCATED TO DEFERRED FOREIGN INCOME MAY NOT
OFFSET UNITED STATES SOURCE INCOME.
``(a) Current Year Deductions.--For purposes of this chapter,
foreign-related deductions for any taxable year--
``(1) shall be taken into account for such taxable year
only to the extent that such deductions are allocable to
currently-taxed foreign income, and
``(2) to the extent not so allowed, shall be taken into
account in subsequent taxable years as provided in subsection
(b).
Foreign-related deductions shall be allocated to currently-taxed
foreign income in the same proportion which currently-taxed foreign
income bears to the sum of currently-taxed foreign income and deferred
foreign income.
``(b) Deductions Related to Repatriated Deferred Foreign Income.--
``(1) In general.--If there is repatriated foreign income
for a taxable year, the portion of the previously deferred
deductions allocated to the repatriated foreign income shall be
taken into account for the taxable year as a deduction
allocated to income from sources outside the United States. Any
such amount shall not be included in foreign-related deductions
for purposes of applying subsection (a) to such taxable year.
``(2) Portion of previously deferred deductions.--For
purposes of paragraph (1), the portion of the previously
deferred deductions allocated to repatriated foreign income
is--
``(A) the amount which bears the same proportion to
such deductions, as
``(B) the repatriated income bears to the
previously deferred foreign income.
``(c) Definitions and Special Rule.--For purposes of this section--
``(1) Foreign-related deductions.--The term `foreign-
related deductions' means the total amount of deductions and
expenses which would be allocated or apportioned to gross
income from sources without the United States for the taxable
year if both the currently-taxed foreign income and deferred
foreign income were taken into account.
``(2) Currently-taxed foreign income.--The term `currently-
taxed foreign income' means the amount of gross income from
sources without the United States for the taxable year
(determined without regard to repatriated foreign income for
such year).
``(3) Deferred foreign income.--The term `deferred foreign
income' means the excess of--
``(A) the amount that would be includible in gross
income under subpart F of this part for the taxable
year if--
``(i) all controlled foreign corporations
were treated as one controlled foreign
corporation, and
``(ii) all earnings and profits of all
controlled foreign corporations were subpart F
income (as defined in section 952), over
``(B) the sum of--
``(i) all dividends received during the
taxable year from controlled foreign
corporations, plus
``(ii) amounts includible in gross income
under section 951(a).
``(4) Previously deferred foreign income.--The term
`previously deferred foreign income' means the aggregate amount
of deferred foreign income for all prior taxable years to which
this part applies, determined as of the beginning of the
taxable year, reduced by the repatriated foreign income for all
such prior taxable years.
``(5) Repatriated foreign income.--The term `repatriated
foreign income' means the amount included in gross income on
account of distributions out of previously deferred foreign
income.
``(6) Previously deferred deductions.--The term `previously
deferred deductions' means the aggregate amount of foreign-
related deductions not taken into account under subsection (a)
for all prior taxable years (determined as of the beginning of
the taxable year), reduced by any amounts taken into account
under subsection (b) for such prior taxable years.
``(7) Treatment of certain foreign taxes.--
``(A) Paid by controlled foreign corporation.--
Section 78 shall not apply for purposes of determining
currently-taxed foreign income and deferred foreign
income.
``(B) Paid by taxpayer.--For purposes of
determining currently-taxed foreign income, gross
income from sources without the United States shall be
reduced by the aggregate amount of taxes described in
the applicable paragraph of section 901(b) which are
paid by the taxpayer (without regard to sections 902
and 960) during the taxable year.
``(d) Application of Section.--This section--
``(1) shall be applied before subpart A, and
``(2) shall be applied separately with respect to the
categories of income specified in section 904(d)(1).''.
(b) Clerical Amendment.--The table of subparts for part III of
subpart N of chapter 1 of such Code is amended by inserting after the
item relating to subpart G the following new item:
``subpart h. special rules for allocation of foreign-related
deductions''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 402. MODIFICATIONS TO RULES RELATING TO INVERTED CORPORATIONS.
(a) In General.--Subsection (b) of section 7874 of the Internal
Revenue Code of 1986 is amended to read as follows:
``(b) Inverted Corporations Treated as Domestic Corporations.--
``(1) In general.--Notwithstanding section 7701(a)(4), a
foreign corporation shall be treated for purposes of this title
as a domestic corporation if--
``(A) such corporation would be a surrogate foreign
corporation if subsection (a)(2) were applied by
substituting `80 percent' for `60 percent', or
``(B) such corporation is an inverted domestic
corporation.
``(2) Inverted domestic corporation.--For purposes of this
subsection, a foreign corporation shall be treated as an
inverted domestic corporation if, pursuant to a plan (or a
series of related transactions)--
``(A) the entity completes after May 8, 2014, the
direct or indirect acquisition of--
``(i) substantially all of the properties
held directly or indirectly by a domestic
corporation, or
``(ii) substantially all of the assets of,
or substantially all of the properties
constituting a trade or business of, a domestic
partnership, and
``(B) after the acquisition, either--
``(i) more than 50 percent of the stock (by
vote or value) of the entity is held--
``(I) in the case of an acquisition
with respect to a domestic corporation,
by former shareholders of the domestic
corporation by reason of holding stock
in the domestic corporation, or
``(II) in the case of an
acquisition with respect to a domestic
partnership, by former partners of the
domestic partnership by reason of
holding a capital or profits interest
in the domestic partnership, or
``(ii) the management and control of the
expanded affiliated group which includes the
entity occurs, directly or indirectly,
primarily within the United States, and such
expanded affiliated group has significant
domestic business activities.
``(3) Exception for corporations with substantial business
activities in foreign country of organization.--A foreign
corporation described in paragraph (2) shall not be treated as
an inverted domestic corporation if after the acquisition the
expanded affiliated group which includes the entity has
substantial business activities in the foreign country in which
or under the law of which the entity is created or organized
when compared to the total business activities of such expanded
affiliated group. For purposes of subsection (a)(2)(B)(iii) and
the preceding sentence, the term `substantial business
activities' shall have the meaning given such term under
regulations in effect on May 8, 2014, except that the Secretary
may issue regulations increasing the threshold percent in any
of the tests under such regulations for determining if business
activities constitute substantial business activities for
purposes of this paragraph.
``(4) Management and control.--For purposes of paragraph
(2)(B)(ii)--
``(A) In general.--The Secretary shall prescribe
regulations for purposes of determining cases in which
the management and control of an expanded affiliated
group is to be treated as occurring, directly or
indirectly, primarily within the United States. The
regulations prescribed under the preceding sentence
shall apply to periods after May 8, 2014.
``(B) Executive officers and senior management.--
Such regulations shall provide that the management and
control of an expanded affiliated group shall be
treated as occurring, directly or indirectly, primarily
within the United States if substantially all of the
executive officers and senior management of the
expanded affiliated group who exercise day-to-day
responsibility for making decisions involving
strategic, financial, and operational policies of the
expanded affiliated group are based or primarily
located within the United States. Individuals who in
fact exercise such day-to-day responsibilities shall be
treated as executive officers and senior management
regardless of their title.
``(5) Significant domestic business activities.--For
purposes of paragraph (2)(B)(ii), an expanded affiliated group
has significant domestic business activities if at least 25
percent of--
``(A) the employees of the group are based in the
United States,
``(B) the employee compensation incurred by the
group is incurred with respect to employees based in
the United States,
``(C) the assets of the group are located in the
United States, or
``(D) the income of the group is derived in the
United States,
determined in the same manner as such determinations are made
for purposes of determining substantial business activities
under regulations referred to in paragraph (3) as in effect on
May 8, 2014, but applied by treating all references in such
regulations to `foreign country' and `relevant foreign country'
as references to `the United States'. The Secretary may issue
regulations decreasing the threshold percent in any of the
tests under such regulations for determining if business
activities constitute significant domestic business activities
for purposes of this paragraph.''.
(b) Conforming Amendments.--
(1) Clause (i) of section 7874(a)(2)(B) of such Code is
amended by striking ``after March 4, 2003,'' and inserting
``after March 4, 2003, and before May 9, 2014,''.
(2) Subsection (c) of section 7874 of such Code is
amended--
(A) in paragraph (2)--
(i) by striking ``subsection
(a)(2)(B)(ii)'' and inserting ``subsections
(a)(2)(B)(ii) and (b)(2)(B)(i)'', and
(ii) by inserting ``or (b)(2)(A)'' after
``(a)(2)(B)(i)'' in subparagraph (B),
(B) in paragraph (3), by inserting ``or
(b)(2)(B)(i), as the case may be,'' after
``(a)(2)(B)(ii)'',
(C) in paragraph (5), by striking ``subsection
(a)(2)(B)(ii)'' and inserting ``subsections
(a)(2)(B)(ii) and (b)(2)(B)(i)'', and
(D) in paragraph (6), by inserting ``or inverted
domestic corporation, as the case may be,'' after
``surrogate foreign corporation''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after May 8, 2014.
TITLE V--DEFICIT REDUCTION
SEC. 501. DEFICIT REDUCTION.
For purposes of the amount of any increase in revenue to the
Treasury by reason of the provisions of this Act and the amendments
made by this Act, $1,000,000,000 of such amount shall be, at such times
and in such manner as determined appropriate by the Secretary of the
Treasury (or the Secretary's delegate), deposited and credited as
general revenue of the Treasury for the purposes of deficit reduction
and shall not be available for obligation.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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