S.Amdt. 2728

SA 2728. Mrs. SHAHEEN submitted an amendment intended to be proposed

[[Page S832]]

to amendment SA 2714 proposed by Mr. Reid (for Mr. Reed) to the bill S.
1845, to provide for the extension of certain unemployment benefits,
and for other purposes; which was ordered to lie on the table; as
follows:

At the appropriate place, add the following:

SEC. 7. REPEAL OF REDUCTIONS MADE BY BIPARTISAN BUDGET ACT OF
2013.

Section 403 of the Bipartisan Budget Act of 2013 is
repealed as of the date of the enactment of such Act.

SEC. 8. TREATMENT OF FOREIGN CORPORATIONS MANAGED AND
CONTROLLED IN THE UNITED STATES AS DOMESTIC
CORPORATIONS.

(a) In General.--Section 7701 of the Internal Revenue Code
of 1986 is amended by redesignating subsection (p) as
subsection (q) and by inserting after subsection (o) the
following new subsection:
``(p) Certain Corporations Managed and Controlled in the
United States Treated as Domestic for Income Tax.--
``(1) In general.--Notwithstanding subsection (a)(4), in
the case of a corporation described in paragraph (2) if--
``(A) the corporation would not otherwise be treated as a
domestic corporation for purposes of this title, but
``(B) the management and control of the corporation occurs,
directly or indirectly, primarily within the United States,

then, solely for purposes of chapter 1 (and any other
provision of this title relating to chapter 1), the
corporation shall be treated as a domestic corporation.
``(2) Corporation described.--
``(A) In general.--A corporation is described in this
paragraph if--
``(i) the stock of such corporation is regularly traded on
an established securities market, or
``(ii) the aggregate gross assets of such corporation (or
any predecessor thereof), including assets under management
for investors, whether held directly or indirectly, at any
time during the taxable year or any preceding taxable year is
$50,000,000 or more.
``(B) General exception.--A corporation shall not be
treated as described in this paragraph if--
``(i) such corporation was treated as a corporation
described in this paragraph in a preceding taxable year,
``(ii) such corporation--

``(I) is not regularly traded on an established securities
market, and
``(II) has, and is reasonably expected to continue to have,
aggregate gross assets (including assets under management for
investors, whether held directly or indirectly) of less than
$50,000,000, and

``(iii) the Secretary grants a waiver to such corporation
under this subparagraph.
``(3) Management and control.--
``(A) In general.--The Secretary shall prescribe
regulations for purposes of determining cases in which the
management and control of a corporation is to be treated as
occurring primarily within the United States.
``(B) Executive officers and senior management.--Such
regulations shall provide that--
``(i) the management and control of a corporation shall be
treated as occurring primarily within the United States if
substantially all of the executive officers and senior
management of the corporation who exercise day-to-day
responsibility for making decisions involving strategic,
financial, and operational policies of the corporation are
located primarily within the United States, and
``(ii) individuals who are not executive officers and
senior management of the corporation (including individuals
who are officers or employees of other corporations in the
same chain of corporations as the corporation) shall be
treated as executive officers and senior management if such
individuals exercise the day-to-day responsibilities of the
corporation described in clause (i).
``(C) Corporations primarily holding investment assets.--
Such regulations shall also provide that the management and
control of a corporation shall be treated as occurring
primarily within the United States if--
``(i) the assets of such corporation (directly or
indirectly) consist primarily of assets being managed on
behalf of investors, and
``(ii) decisions about how to invest the assets are made in
the United States.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning on or after the date
which is 2 years after the date of the enactment of this Act,
whether or not regulations are issued under section
7701(p)(3) of the Internal Revenue Code of 1986, as added by
this section.
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