S.Amdt. 1807

SA 1807. Mr. GRAHAM submitted an amendment intended to be proposed by
him to the bill H.R. 1, to provide for reconciliation pursuant to
titles II and V of the concurrent resolution on the budget for fiscal
year 2018; which was ordered to lie on the table; as follows:

On page __, line ___, strike ``(h) Regulations.--'' and
insert:
``(h) Special Rules to Prevent the Double Taxation of Base
Erosion Payments.--
``(1) Coordination with tax on certain insurance
policies.--
``(A) In general.--If applicable taxes are imposed on 1 or
more base erosion payments made by the taxpayer for any
taxable year, the base erosion minimum tax amount for such
taxable year shall be reduced by the applicable percentage of
the aggregate amount of such taxes imposed on such payments.
``(B) Applicable percentage.--For purposes of this
paragraph, the term `applicable percentage' means, with
respect to any taxable year, the percentage determined by
dividing--
``(i) the base erosion payments for such taxable year on
which applicable taxes were imposed, by
``(ii) the aggregate amount of base erosion payments of the
taxpayer for the taxable year.

[[Page S7649]]

``(C) Applicable taxes.--For purposes of this paragraph,
the term `applicable tax' means any tax imposed by--
``(i) section 4371(2), or
``(ii) section 4173(3), but only to the extent applicable
to reinsurance covering contracts taxable under section
4371(2).
``(2) Reduction for amounts paid to the taxpayer.--The
amount of any base erosion payment described in subsection
(d)(1) paid or accrued during the taxable year by the
taxpayer to a foreign person which is a related party to the
taxpayer shall be reduced by any amount which was--
``(A) paid or accrued during such taxable year by such
foreign person to the taxpayer, and
``(B) related to such base erosion payment.
``(3) Payments subject to united states tax.--No amount
paid or accrued during the taxable year by the taxpayer to a
foreign person which is a related party to the taxpayer shall
be treated as a base erosion payment under subsection (d) to
the extent--
``(A) such amount is taken into account by such foreign
person in determining the tax of such foreign person under
this subtitle, and
``(B) such foreign person has certified it is exempt from
withholding tax under section 1441 or 1442 or such person has
elected to be taxed under this subtitle as a United States
person.
``(i) Regulations.--
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