S.Amdt. 2930

1. Adds SEC. ___. ELIMINATION OF TAX SUBSIDIES FOR OUTSOURCING OF AMERICAN JOBS wherever appropriate

   Adds a section

   Inserted: SEC. ___. ELIMINATION OF TAX SUBSIDIES FOR OUTSOURCING OF AMERICAN JOBS.

   Inserted: (a) Denial of Deductions and Credits.--

   Inserted: (1) In general.--Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end the following new section:

   Inserted: "SEC. 280I. ELIMINATION OF TAX SUBSIDIES FOR OUTSOURCING OF AMERICAN JOBS.

   Inserted: "(a) In General.--No deduction or credit shall be allowed under this chapter with respect to any applicable outsourcing item.

   Inserted: "(b) Applicable Outsourcing Item.--For purposes of this section--

   Inserted: "(1) In general.--The term 'applicable outsourcing item' means any item of expense (including any allowance for depreciation or amortization) or loss arising in connection with 1 or more transactions which--

   Inserted: "(A) transfer the production of goods (or the performance of services) from within the United States to outside the United States, and

   Inserted: "(B) result in the replacement of workers who reside in the United States with other workers who reside outside of the United States.

   Inserted: "(2) Certain items included.--The term 'applicable outsourcing item' shall include with respect to any transaction described in paragraph (1)--

   Inserted: "(A) any amount paid or incurred in training the replacement workers described in paragraph (1)(B),

   Inserted: "(B) any amount paid or incurred in transporting tangible property outside the United States in connection with the transfer described in paragraph (1)(A),

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   Inserted: "(C) any expense or loss incurred in connection with the sale, abandonment, or other disposition of any property or facility located within the United States and used in the production of goods (or the performance of services) before such transfer,

   Inserted: "(D) expenses paid or incurred for travel in connection with the planning and carrying out of any such transaction,

   Inserted: "(E) any general or administrative expenses properly allocable to any such transaction,

   Inserted: "(F) any amount paid or incurred in connection with any such transaction for the acquisition of any property or facility located outside the United States, and

   Inserted: "(G) any other item specified by the Secretary.

   Inserted: "(3) Certain items not included.--The term 'applicable outsourcing item' shall not include any expenses directly allocable to the sale of goods and services outside the United States.

   Inserted: "(c) Regulations.--The Secretary shall prescribe such regulations as are necessary or appropriate to carry out the provisions of this section. The Secretary shall prescribe initial regulations not later than 180 days after the date of enactment of this section."

   Inserted: (2) Conforming amendment.--The table of sections for part IX of subchapter B of chapter 1 is amended by adding at the end the following new item:

   Inserted: "Sec. 480I. Elimination of tax subsidies for outsourcing of American jobs."

   Inserted: (b) Denial of Deferral.--Section 952(a) (defining subpart F income) is amended by striking "and" at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting ", and", and by inserting after paragraph (5) the following new paragraph:

   Inserted: "(6) any income properly allocable to the production of goods (or the performance of services) in a foreign country if such production or performance were transferred in 1 or more transactions which are described in section 280I(b) and to which section 280I applies."

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to transactions occurring on or after the date of enactment of this Act.

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   Original wording

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As printed