S.Amdt. 3565

1. Adds SEC. ___. MODIFICATION AND PERMANENT EXTENSION OF THE INCENTIVES TO REINVEST FOREIGN EARNINGS IN THE UNITED STATES wherever appropriate

   Adds a section

   Inserted: SEC. ___. MODIFICATION AND PERMANENT EXTENSION OF THE INCENTIVES TO REINVEST FOREIGN EARNINGS IN THE UNITED STATES.

   Inserted: (a) In General.--

   Inserted: (1) 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".

   Inserted: (2) Permanent extension to elect repatriation.--Subsection (f) of section 965 of the Internal Revenue Code of 1986 is amended to read as follows:

   Inserted: "(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.".

   Inserted: (3) Repatriation includes current and accumulated foreign earnings.--

   Inserted: (A) In general.--Paragraph (1) of section 965(b) of the Internal Revenue Code of 1986 is amended to read as follows:

   Inserted: "(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.".

   Inserted: (B) Conforming amendments.--

   Inserted: (i) Section 965(b) of such Code is amended by striking paragraphs (2) and (4) and by redesignating paragraph (3) as paragraph (2).

   Inserted: (ii) 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.

   Inserted: (iii) Paragraph (3) of section 965(c) of such Code, as redesignated by clause (ii), is amended to read as follows:

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   Inserted: "(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.".

   Inserted: (4) Clerical amendments.--

   Inserted: (A) The heading for section 965 of the Internal Revenue Code of 1986 is amended by striking "temporary".

   Inserted: (B) 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".

   Inserted: (b) Transfers of Revenue to Highway Trust Fund.--Section 9503(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

   Inserted: "(7) Revenues attributable to dividends received deductions .--There are hereby appropriated to the Highway Trust Fund amounts equivalent to the revenue derived from the amendments made by section ___(a) of the Highway and Transportation Funding Act of 2014, as determined by the Secretary in consultation with the Director of the Congressional Budget Office.".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

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   Original wording

   At the appropriate place, insert the following:

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As printed