To amend the Internal Revenue Code of 1986 to allow the deduction for dividends received from controlled foreign corporations for an additional year, and for other purposes.

SA 112. Mrs. BOXER (for herself, Mr. Ensign, Mr. Bayh, and Mr.
Specter) submitted an amendment intended to be proposed to amendment SA
98 proposed by Mr. Inouye (for himself and Mr. Baucus) to the bill H.R.
1, making supplemental appropriations for job preservation and
creation, infrastructure investment, energy efficiency and science,
assistance to the unemployed, and State and local fiscal stabilization,
for fiscal year ending September 30, 2009, and for other purposes;
which was order to lie on the table; as follows:

On page 514, between lines 16 and 17, insert the following:

PART X--INVEST IN THE USA

SEC. 1291. ALLOWANCE OF DEDUCTION FOR DIVIDENDS RECEIVED FROM
CONTROLLED FOREIGN CORPORATIONS FOR ADDITIONAL
YEAR.

(a) In General.--Section 965 (relating to temporary
dividends received deduction) is amended by adding at the end
the following new subsection:
``(g) Allowance for Deduction for an Additional Year.--
``(1) In general.--In the case of an election under this
subsection, subsection (f)(1) shall be applied by
substituting `January 1, 2010,' for `the date of the
enactment of this section'.
``(2) Special rules.--For purposes of paragraph (1)--
``(A) Extraordinary dividends.--Subsection (b)(2) shall be
applied by substituting `June 30, 2009' for `June 30, 2003'.

[[Page S1444]]

``(B) Determinations relating to related party
indebtedness.--Subsection (b)(3)(B) shall be applied by
substituting `October 3, 2009' for `October 3, 2004'.
``(C) Applicable financial statement.--Subsection (c)(1)
shall be applied by substituting `June 30, 2009' for `June
30, 2003' each place it occurs.
``(D) Determinations relating to base period.--Subsection
(c)(2) shall be applied by substituting `June 30, 2009' for
`June 30, 2003'.
``(E) Requirements for investment in united states.--
Subsection (b)(4) shall be applied--
``(i) by inserting `deposited in 1 or more United States
financial institutions and' after `amount of the dividend',
and
``(ii) by striking subparagraph (B) thereof and inserting
the following:
`` `(B) provides for the reinvestment of such dividend in
the United States (other than as payment for executive
compensation) as a source of funding for only 1 or more of
the following purposes:
`` `(i) worker hiring and training,
`` `(ii) research and development,
`` `(iii) capital improvements,
`` `(iv) acquisitions of business entities for the purpose
of retaining or creating jobs in the United States, and
`` `(v) clean energy initiatives (such as clean energy
research and development, energy efficiency, clean energy
start ups, and clean energy jobs).
For any purpose described in clause (i), (ii), or (iii),
funding shall qualify for purposes of this paragraph only if
such funding supplements but does not supplant otherwise
scheduled funding for either taxable year described in
subsection (f) by the taxpayer for such purpose. Such
scheduled funding shall be certified by the individual and
entity approving the domestic reinvestment plan.'.
``(3) Audit.--Not later than 2 years after the date of the
election under this subsection, the Internal Revenue Service
shall conduct an audit of the taxpayer with respect to any
reinvestment transaction arising from such election.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years ending on or after January 1,
2010.
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