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Title I — Establishment and funding

S. 911 · 113th Congress · May 9, 2013 · Lineage

I Establishment and funding

Sec. 101 Modification and permanent extension of the incentives to reinvest foreign earnings in the United States

(a)
Repatriation subject to 5 percent tax rate— Subsection (a)(1) of section 965 of the Internal Revenue Code of 1986 is amended by striking “85 percent” and inserting “85.7 percent”.
(b)
Permanent extension To elect repatriation— Subsection (f) of section 965 of the Internal Revenue Code of 1986 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.”

(c)
Repatriation includes current and accumulated foreign earnings—
(1)
In general— Paragraph (1) of section 965(b) of the Internal Revenue Code of 1986 is amended to read as follows:

“(1) In general—The amount of dividends taken into account under subsection (a) shall not exceed the sum of the current and accumulated earnings 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 foreign corporations of the United States shareholder.”

(2)
Conforming amendments—
(A)
Section 965(b) of such Code is amended by striking paragraphs (2) and (4) and by redesignating paragraph (3) as paragraph (2).
(B)
Section 965(c) of such Code is amended by striking paragraphs (1) and (2) and by redesignating paragraphs (3), (4), and (5) as paragraphs (1), (2), and (3), respectively.
(C)
Paragraph (3) of section 965(c) of such Code, as redesignated 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 shareholder.”

(d)
Clerical amendments—
(1)
The heading for section 965 of the Internal Revenue Code of 1986 is amended by striking “Temporary”.
(2)
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 inserting “Dividends”.
(e)
Effective date— The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

Sec. 102 Establishment of Emergency Transportation Safety Fund

(a)
In general— There is established in the Treasury of the United States a trust fund to be known as the “Emergency Transportation Safety Fund”.
(b)
Transfers to Emergency Transportation Safety Fund—
(1)
In general— There are hereby appropriated to the Emergency Transportation Safety Fund amounts equivalent to 50 percent of the excess of—
(A)
the taxes received in the United States Treasury which are attributable to eligible 965 dividends received by corporations which are United States shareholders, over
(B)
the amount of the foreign tax credit allowed under section 901 of the Internal Revenue Code of 1986 which is attributable to the non-deductible portion of such eligible 965 dividends.
(2)
Definitions— For purposes of this subsection—
(A)
Eligible 965 dividend— The term eligible 965 dividend means any amount received from a controlled foreign corporation for which a deduction is allowed under section 965 of the Internal Revenue Code of 1986, as determined based on estimates made by the Secretary of the Treasury, or the Secretary's delegate.
(B)
Non-deductible portion— The term non-deductible portion means the excess of the amount of any eligible 965 dividend over the deductible portion (as defined in section 965(d)(3) of the Internal Revenue Code of 1986) of such amount.
(c)
Emergency relief expenditures— Section 125(c) of title 23, United States Code, is amended by adding at the end the following:

“(3) Emergency transportation safety fund—Amounts deposited into the Emergency Transportation Safety Fund established under section 102(a) of the Emergency Transportation Safety Fund Act are authorized to be obligated to carry out, in priority order, the projects on the current list compiled by the Secretary under section 201(b)(1) of such Act that meet the eligibility requirements set forth in subsection (a).”