S. 596Senate108th Congress (2003-2005)In Committee

Invest in the U.S.A. Act of 2003

Introduced March 11, 2003

Legislative Activity

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4 earlier actions
SenateIntro Referral Latest Action

Sponsor introductory remarks on measure. (CR S3321)

March 30, 2004

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SenateIntro Referral

Introduced in Senate

March 11, 2003

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S3519)

March 11, 2003

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S3519-3520)

March 11, 2003

SenateFloor

Star Print ordered on the bill.

March 18, 2003

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S3321)

March 30, 2004

Floor Debate

18 members

What members said about S. 596 on the floor

6 Republicans12 Democrats
Susan M. Collins
Sen. Susan M. CollinsR-ME · Mar 11, 2003

Mr. President, I am pleased to join with Senators Miller, Dole, McCain, Kerry, Chambliss and Specter in introducing the David Jayne Medicare Homebound Modernization Act of 2003 to modernize…

John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · Mar 11, 2003

Mr. President, I am pleased and proud to introduce the MediKids Health Insurance Act of 2003. Congressman Stark is introducing a companion bill in the House. This legislation is, without a doubt,…

Daniel K. Akaka
Sen. Daniel K. AkakaD-HI · Mar 11, 2003

Mr. President. Today I rise on behalf of myself and Senators Durbin, Allen and Voinovich to reintroduce the Homeland Security Federal Workforce Act. This is similar to legislation Senator Durbin,…

Blanche L. Lincoln
Sen. Blanche L. LincolnD-AR · Mar 11, 2003

Mr. President, I rise today to introduce the ``Access to Diabetes Screening Services Act of 2003'' with my friends Senators Collins and Bingaman. This bill will help to bring the epidemic of diabetes…

Larry E. Craig
Sen. Larry E. CraigR-ID · Mar 11, 2003

Mr. President, there should be no doubt that energy is vital to our economy and that it contributes to our wealth and strength as a nation. While it is true that human intelligence, a skilled…

Show 8 more
Ron Wyden
Sen. Ron WydenD-OR · Mar 11, 2003

Mr. President, today, I am introducing the Hydrogen Transportation Wins Over Growing Reliance on Oil, H2 GROW, Act to accelerate getting cars and trucks powered by hydrogen on our roads as a way to…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Mar 11, 2003

Mr. President, on behalf of myself and Senator Breaux, I rise today to introduce the Housing Bond and Credit Modernization and Fairness Act of 2003. We are joined in this legislation by Senators…

Ernest F. Hollings
Sen. Ernest F. HollingsD-SC · Mar 11, 2003

Mr. President, the Department of Labor, recently released the latest unemployment results and at first blush, the 5.8 percent figure, while certainly too high, does not seem overly alarming. It is…

Jon S. Corzine
Sen. Jon S. CorzineD-NJ · Mar 11, 2003

Mr. President, I rise today to introduce the Round II EZ/EC Flexibility Act of 2003. This important legislation would secure vital funding for Round II Empowerment Zones and Enterprise Communities to…

John Ensign
Sen. John EnsignR-NV · Mar 11, 2003

Mr. President. I rise today with my colleagues Senator Boxer, Senator Smith, Senator Allen, Senator Enzi and Senator Bayh to introduce The Invest in the U.S.A. Act of 2003 to stimulate job growth and…

John Ensign
Sen. John EnsignR-NV · Mar 11, 2003

Mr. President. I rise today with my colleagues Senator Boxer, Senator Smith, Senator Allen, Senator Enzi and Senator Bayh to introduce The Invest in the U.S.A. Act of 2003 to stimulate job growth and…

Barbara A. Mikulski
Sen. Barbara A. MikulskiD-MD · Mar 11, 2003

Mr. President, yesterday I spoke on the floor about supporting our armed forces. Support for our troops is particularly important today as our soldiers, sailors, airmen and marines are deployed for…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Mar 11, 2003

Mr. President, today, with war looming with Iraq and hundreds of thousands of our troops poised for battle overseas, I would like to discuss the financial burden faced by many of the men and women…

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Barbara Boxer
Sen. Barbara BoxerD-CA · Mar 11, 2003

Today, Senator Ensign and I are introducing the Invest in the U.S.A. Act of 2003 along with Senators Smith, Allen, Enzi, and Bayh. This economic stimulus legislation would create a one-year incentive…

Barbara Boxer
Sen. Barbara BoxerD-CA · Mar 11, 2003

Today, Senator Ensign and I are introducing the Invest in the U.S.A. Act of 2003 along with Senators Smith, Allen, Enzi, and Bayh. This economic stimulus legislation would create a one-year incentive…

Max Baucus
Sen. Max BaucusD-MT · Mar 11, 2003

Mr. President, I am pleased to join Chairman Grassley in introducing the Energy Tax Incentives Act of 2003. The chairman and the ranking member of the Energy and Natural Resources Committee, Senators…

Tim Johnson
Sen. Tim JohnsonD-SD · Mar 11, 2003

Mr. President, I, along with Senators Daschle, Campbell, Cochran, and Murray introduce the Indian School Construction Act. This legislation establishes an innovative funding mechanism to enhance the…

Jeff Bingaman
Sen. Jeff BingamanD-NM · Mar 11, 2003

Mr. President, I am pleased to join the Chairman and Ranking Member of the Finance Committee and the Chairman of the Energy and Natural Resources Committee as a sponsor of the Energy Tax Incentives…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Mar 11, 2003

Mr. President, I am pleased that today we offer a bipartisan energy tax incentives package for the 108th Congress. I have been joined in this introduction by not only Ranking Member of the Finance…

Lisa Murkowski
Sen. Lisa MurkowskiR-AK · Mar 18, 2003

Mr. President, I ask unanimous consent that S. 596 be star printed with the changes that are at the desk.

Bill Text

Latest available legislative text

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Latest
Introduced in SenateIssued March 11, 2003
        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 596 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 596

To amend the Internal Revenue Code of 1986 to encourage the investment
of foreign earnings within the United States for productive business
investments and job creation.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

March 11, 2003

Mr. Ensign (for himself, Mrs. Boxer, Mr. Smith, Mr. Allen, Mr. Enzi,
and Mr. Bayh) introduced the following bill; which was read twice and
referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to encourage the investment
of foreign earnings within the United States for productive business
investments and job creation.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Invest in the U.S.A. Act of 2003''.

SEC. 2. TOLL TAX ON EXCESS QUALIFIED FOREIGN DISTRIBUTION AMOUNT.

(a) In General.--Subpart F of part III of subchapter N of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:

``SEC. 965. TOLL TAX IMPOSED ON EXCESS QUALIFIED FOREIGN DISTRIBUTION
AMOUNT.

``(a) Toll Tax Imposed on Excess Qualified Foreign Distribution
Amount.--If a corporation elects the application of this section, a tax
shall be imposed on the taxpayer in an amount equal to 5.25 percent
of--
``(1) the taxpayer's excess qualified foreign distribution
amount, and
``(2) the amount determined under section 78 which is
attributable to such excess qualified foreign distribution
amount.
Such tax shall be imposed in lieu of the tax imposed under section 11
or 55 on the amounts described in paragraphs (1) and (2) for such
taxable year.
``(b) Excess Qualified Foreign Distribution Amount.--For purposes
of this section--
``(1) In general.--The term `excess qualified foreign
distribution amount' means the excess (if any) of--
``(A) dividends received by the taxpayer during the
taxable year which are--
``(i) from 1 or more corporations which are
controlled foreign corporations in which the
taxpayer is a United States shareholder on the
date such dividends are paid, and
``(ii) described in a domestic reinvestment
plan approved by the taxpayer's president,
chief executive officer, or comparable official
before the payment of such dividends and
subsequently approved by the taxpayer's board
of directors, management committee, executive
committee, or similar body, which plan shall
provide for the reinvestment of such dividends
in the United States, including as a source for
the funding of worker hiring and training;
infrastructure; research and development;
capital investments; or the financial
stabilization of the corporation for the
purposes of job retention or creation, over
``(B) the base dividend amount.
``(2) Base dividend amount.--The term `base dividend
amount' means an amount designated under subsection (c)(7), but
not less than the average amount of dividends received during
the fixed base period from 1 or more corporations which are
controlled foreign corporations in which the taxpayer is a
United States shareholder on the date such dividends are paid.
``(3) Fixed base period.--
``(A) In general.--The term `fixed base period'
means each of 3 taxable years which are among the 5
most recent taxable years of the taxpayer ending on or
before December 31, 2002, determined by disregarding--
``(i) the 1 taxable year for which the
taxpayer had the highest amount of dividends
from 1 or more corporations which are
controlled foreign corporations relative to the
other 4 taxable years, and
``(ii) the 1 taxable year for which the
taxpayer had the lowest amount of dividends
from such corporations relative to the other 4
taxable years.
``(B) Shorter period.--If the taxpayer has fewer
than 5 taxable years ending on or before December 31,
2002, then in lieu of applying subparagraph (A), the
fixed base period shall mean such shorter period
representing all of the taxable years of the taxpayer
ending on or before December 31, 2002.
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Dividends.--The term `dividend' means a dividend as
defined in section 316, except that the term shall also include
amounts described in section 951(a)(1)(B), and shall exclude
amounts described in sections 78 and 959.
``(2) Controlled foreign corporations and united states
shareholders.--The term `controlled foreign corporation' shall
have the same meaning as under section 957(a) and the term
`United States shareholder' shall have the same meaning as
under section 951(b).
``(3) Foreign tax credits.--The amount of any income, war,
profits, or excess profit taxes paid (or deemed paid under
sections 902 and 960) or accrued by the taxpayer with respect
to the excess qualified foreign distribution amount for which a
credit would be allowable under section 901 in the absence of
this section, shall be reduced by 85 percent.
``(4) Foreign tax credit limitation.--For all purposes of
section 904, there shall be disregarded 85 percent of--
``(A) the excess qualified foreign distribution
amount,
``(B) the amount determined under section 78 which
is attributable to such excess qualified foreign
distribution amount, and
``(C) the amounts (including assets, gross income,
and other relevant bases of apportionment) which are
attributable to the excess qualified foreign
distribution amount which would, determined without
regard to this section, be used to apportion the
expenses, losses, and deductions of the taxpayer under
section 861 and 864 in determining its taxable income
from sources without the United States.
For purposes of applying subparagraph (C), the principles of
section 864(e)(3)(A) shall apply.
``(5) Treatment of acquisitions and dispositions.--Rules
similar to the rules of section 41(f)(3) shall apply in the
case of acquisitions or dispositions of controlled foreign
corporations occurring on or after the first day of the
earliest taxable year taken into account in determining the
fixed base period.
``(6) Treatment of consolidated groups.--Members of an
affiliated group of corporations filing a consolidated return
under section 1501 shall be treated as a single taxpayer in
applying the rules of this section.
``(7) Designation of dividends.--Subject to subsection
(b)(2), the taxpayer shall designate the particular dividends
received during the taxable year from 1 or more corporations
which are controlled foreign corporations in which it is a
United States shareholder which are dividends excluded from the
excess qualified foreign distribution amount. The total amount
of such designated dividends shall equal the base dividend
amount.
``(8) Treatment of expenses, losses, and deductions.--Any
expenses, losses, or deductions of the taxpayer allowable under
subchapter B--
``(A) shall not be applied to reduce the amounts
described in subsection (a)(1), and
``(B) shall be applied to reduce other income of
the taxpayer (determined without regard to the amounts
described in subsection (a)(1)).
``(d) Election.--
``(1) In general.--An election under this section shall be
made on the taxpayer's timely filed income tax return for the
taxable year (determined by taking extensions into account)
ending 120 days or more after the date of the enactment of this
section, and, once made, may be revoked only with the consent
of the Secretary.
``(2) All controlled foreign corporations.--The election
shall apply to all corporations which are controlled foreign
corporations in which the taxpayer is a United States
shareholder during the taxable year.
``(3) Consolidated groups.--If a taxpayer is a member of an
affiliated group of corporations filing a consolidated return
under section 1501 for the taxable year, an election under this
section shall be made by the common parent of the affiliated
group which includes the taxpayer, and shall apply to all
members of the affiliated group.
``(e) Regulations.--The Secretary shall prescribe such regulations
as may be necessary and appropriate to carry out the purposes of this
section, including regulations under section 55 and regulations
addressing corporations which, during the fixed base period or
thereafter, join or leave an affiliated group of corporations filing a
consolidated return.''.
(b) Conforming Amendment.--The table of sections for subpart F of
part III of subchapter N of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:

``Sec. 965. Toll tax imposed on excess
qualified foreign distribution
amount.''.
(c) Effective Date.--The amendments made by this section shall
apply only to the first taxable year of the electing taxpayer ending
120 days or more after the date of the enactment of this Act.
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