S.Amdt. 2911

SA 2911. Mr. COONS (for himself, Ms. Hirono, Mrs. Murray, Mr.
Merkley, and Mr. King) submitted an amendment intended to be proposed
to amendment SA 2874 proposed by Mr. McConnell to the bill H.R. 3762,
to provide for reconciliation pursuant to section 2002 of the
concurrent resolution on the budget for fiscal year 2016; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. EXPANSION AND MODIFICATION OF CREDIT FOR EMPLOYEE
HEALTH INSURANCE EXPENSES OF SMALL EMPLOYERS.

(a) Expansion of Definition of Eligible Small Employer.--
Subparagraph (A) of section 45R(d)(1) of the Internal Revenue
Code of 1986 is amended by striking ``25'' and inserting
``50''.
(b) Amendment to Phaseout Determination.--Subsection (c) of
section 45R of the Internal Revenue Code of 1986 is amended
to read as follows:
``(c) Phaseout of Credit Amount Based on Number of
Employees and Average Wages.--The amount of the credit
determined under subsection (b) (without regard to this
subsection) shall be adjusted (but not below zero) by
multiplying such amount by the product of--
``(1) the lesser of--
``(A) a fraction the numerator of which is the excess (if
any) of 50 over the total number of full-time equivalent
employees of the employer and the denominator of which is 30,
and
``(B) 1, and
``(2) the lesser of--
``(A) a fraction--
``(i) the numerator of which is the excess (if any) of--

``(I) the dollar amount in effect under subsection
(d)(3)(B) for the taxable year, multiplied by 3, over
``(II) the average annual wages of the employer for such
taxable year, and

``(ii) the denominator of which is the dollar amount so in
effect under subsection (d)(3)(B), multiplied by 2, and
``(B) 1.''.
(c) Extension of Credit Period.--Paragraph (2) of section
45R(e) of the Internal Revenue Code of 1986 is amended by
striking ``2-consecutive-taxable year period'' and all that
follows and inserting ``3-consecutive-taxable year period
beginning with the 1st taxable year beginning after 2014 in
which--
``(A) the employer (or any predecessor) offers 1 or more
qualified health plans to its employees through an Exchange,
and
``(B) the employer (or any predecessor) claims the credit
under this section.''.
(d) Average Annual Wage Limitation.--Subparagraph (B) of
section 45R(d)(3) of the Internal Revenue Code of 1986 is
amended to read as follows:
``(B) Dollar amount.--For purposes of paragraph (1)(B) and
subsection (c)(2), the dollar amount in effect under this
paragraph is the amount equal to 110 percent of the poverty
line (within the meaning of section 36B(d)(3)) for a family
of 4.''.
(e) Elimination of Uniform Percentage Contribution
Requirement.--Paragraph (4) of section 45R(d) of the Internal
Revenue Code of 1986 is amended by striking ``a uniform
percentage (not less than 50 percent)'' and inserting ``at
least 50 percent''.
(f) Elimination of Cap Relating to Average Local
Premiums.--Subsection (b) of section 45R of the Internal
Revenue Code of 1986 is amended by striking ``the lesser of''
and all that follows and inserting ``the aggregate amount of
nonelective contributions the employer made on behalf of its
employees during the taxable year under the arrangement
described in subsection (d)(4) for premiums for qualified
health plans offered by the employer to its employees through
an Exchange.''.
(g) Amendment Relating to Annual Wage Limitation.--
Subparagraph (B) of section 45R(d)(1) of the Internal Revenue
Code of 1986 is amended by striking ``twice'' and inserting
``three times''.
(h) Effective Date.--The amendments made by this section
shall apply to amounts

[[Page S8403]]

paid or incurred in taxable years beginning after December
31, 2014.

SEC. ___. MODIFICATIONS TO RULES RELATING TO INVERTED
CORPORATIONS.

(a) In General.--Subsection (b) of section 7874 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(b) Inverted Corporations Treated as Domestic
Corporations.--
``(1) In general.--Notwithstanding section 7701(a)(4), a
foreign corporation shall be treated for purposes of this
title as a domestic corporation if--
``(A) such corporation would be a surrogate foreign
corporation if subsection (a)(2) were applied by substituting
`80 percent' for `60 percent', or
``(B) such corporation is an inverted domestic corporation.
``(2) Inverted domestic corporation.--For purposes of this
subsection, a foreign corporation shall be treated as an
inverted domestic corporation if, pursuant to a plan (or a
series of related transactions)--
``(A) the entity completes after November 30, 2015, the
direct or indirect acquisition of--
``(i) substantially all of the properties held directly or
indirectly by a domestic corporation, or
``(ii) substantially all of the assets of, or substantially
all of the properties constituting a trade or business of, a
domestic partnership, and
``(B) after the acquisition, more than 50 percent of the
stock (by vote or value) of the entity is held--
``(i) in the case of an acquisition with respect to a
domestic corporation, by former shareholders of the domestic
corporation by reason of holding stock in the domestic
corporation, or
``(ii) in the case of an acquisition with respect to a
domestic partnership, by former partners of the domestic
partnership by reason of holding a capital or profits
interest in the domestic partnership.
``(3) Exception for corporations with substantial business
activities in foreign country of organization.--A foreign
corporation described in paragraph (2) shall not be treated
as an inverted domestic corporation if after the acquisition
the expanded affiliated group which includes the entity has
substantial business activities in the foreign country in
which or under the law of which the entity is created or
organized when compared to the total business activities of
such expanded affiliated group. For purposes of subsection
(a)(2)(B)(iii) and the preceding sentence, the term
`substantial business activities' shall have the meaning
given such term under regulations in effect on November 30,
2015, except that the Secretary may issue regulations
increasing the threshold percent in any of the tests under
such regulations for determining if business activities
constitute substantial business activities for purposes of
this paragraph.''.
(b) Conforming Amendments.--
(1) Clause (i) of section 7874(a)(2)(B) of such Code is
amended by striking ``after March 4, 2003,'' and inserting
``after March 4, 2003, and before December 1, 2015,''.
(2) Subsection (c) of section 7874 of such Code is
amended--
(A) in paragraph (2)--
(i) by striking ``subsection (a)(2)(B)(ii)'' and inserting
``subsections (a)(2)(B)(ii) and (b)(2)(B)'', and
(ii) by inserting ``or (b)(2)(A)'' after ``(a)(2)(B)(i)''
in subparagraph (B),
(B) in paragraph (3), by inserting ``or (b)(2)(B), as the
case may be,'' after ``(a)(2)(B)(ii)'',
(C) in paragraph (5), by striking ``subsection
(a)(2)(B)(ii)'' and inserting ``subsections (a)(2)(B)(ii) and
(b)(2)(B)'', and
(D) in paragraph (6), by inserting ``or inverted domestic
corporation, as the case may be,'' after ``surrogate foreign
corporation''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after November 30, 2015.
______