S. 45Senate112th Congress (2011-2013)In Committee

Offshoring Prevention Act

Introduced January 25, 2011

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

January 25, 2011

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SenateIntro Referral

Introduced in Senate

January 25, 2011

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S152-153)

January 25, 2011

SenateIntro Referral

Read twice and referred to the Committee on Finance.

January 25, 2011

Floor Debate

20 members

What members said about S. 45 on the floor

5 Republicans15 Democrats
Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jan 25, 2011

Mr. President, I rise on behalf of myself and Senator Boxer to introduce legislation to establish a National Heritage Area in the California Sacramento-San Joaquin Delta. This legislation will create…

Daniel K. Inouye
Sen. Daniel K. InouyeD-HI · Jan 25, 2011

Mr. President, I am pleased to introduce the Coral Reef Conservation Amendments Act, which I also introduced in the 111th Congress. This critical bill reauthorizes and strengthens the Coral Reef…

Herb Kohl
Sen. Herb KohlD-WI · Jan 25, 2011

Mr. Chairman, I rise today to introduce the Preserve Access to Affordable Generics Act. This bipartisan legislation will dramatically reduce prescription drug costs by preventing one of the most…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Jan 25, 2011

Mr. President, the United States of America has long been the world leader in invention and innovation. That leadership has propelled our economic growth, but we cannot remain complacent while…

Maria Cantwell
Sen. Maria CantwellD-WA · Jan 25, 2011

Mr. President, I rise today to introduce legislation that will preserve the free and open Internet that has led to the growth of broadband. The broadband Internet is integral to U.S. job creation,…

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Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jan 25, 2011

Mr. President, during the recent 2-week recess, I was invited to speak to the Parliament of the nation of Lithuania in the capital of Vilnius. It was a great honor. This country holds a special place…

John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · Jan 25, 2011

Mr. President, I rise today to reintroduce the Public Safety Spectrum and Wireless Innovation Act. Radio spectrum is a tremendous resource. It can grow our economy and put innovative wireless…

Tom Harkin
Sen. Tom HarkinD-IA · Jan 25, 2011

Mr. President, the Healthy Lifestyles and Prevention America Act, also known as the HeLP America Act, will improve the health of Americans and reduce health care costs by emphasizing prevention,…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Jan 25, 2011

Mr. President, improving public safety, growing our economy, increasing energy independence, and protecting the environment have always been among my top priorities as a Senator. Today, the very…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · Jan 25, 2011

Mr. President, from the Recovery Act to the Small Business Jobs Act, in the previous Congress we passed a number of substantial pieces of legislation to preserve, protect, and create American jobs.…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · Jan 25, 2011

Mr. President, from the Recovery Act to the Small Business Jobs Act, in the previous Congress we passed a number of substantial pieces of legislation to preserve, protect, and create American jobs.…

Kay Bailey Hutchison
Sen. Kay Bailey HutchisonR-TX · Jan 25, 2011

Mr. President, I am pleased to introduce a bill to provide permanent tax relief from the marriage penalty--the most egregious, anti-family provision in the tax code. One of my highest priorities in…

Jon Tester
Sen. Jon TesterD-MT · Jan 25, 2011

Mr. President, I rise today to introduce the Common Sense in Consumer Product Safety Act of 2011 on behalf of the folks across America who are outdoor enthusiasts and budding sportsman and women.…

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Jeff Bingaman
Sen. Jeff BingamanD-NM · Jan 25, 2011

Mr. President, today I am introducing the American Medical Isotopes Production Act of 2011. The purpose of the bill is to provide certainty in developing a domestic supply of molybdenum-99, which is…

Max Baucus
Sen. Max BaucusD-MT · Jan 25, 2011

Mr. President, American judge and judicial philosopher Learned Hand once wrote: ``Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Jan 25, 2011

Mr. President, I rise to express support for the Patent Reform Act of 2011, S. 23, introduced today by Senate Judiciary Committee Chairman Patrick Leahy. Senator Leahy and I, along with a number of…

Mark Kirk
Sen. Mark KirkR-IL · Jan 25, 2011

Mr. President, today I am pleased to join with Senator Durbin to introduce the Great Lakes Water Protection Act. This bipartisan legislation would set a date certain to end sewage dumping in…

Barbara Boxer
Sen. Barbara BoxerD-CA · Jan 25, 2011

Mr. President, I rise today to introduce the Helping Responsible Homeowners Act of 2011. This legislation will eliminate barriers that have prevented millions of borrowers who continue to make their…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jan 25, 2011

Mr. President, today I am introducing the Great Lakes Water Protection Act with my colleague, Senator Mark Kirk. We face many challenges in protecting the Great Lakes--from contaminated sediment to…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Jan 25, 2011

Mr. President, Senator Baucus and I first introduced a bill to ban patents for tax inventions in the 110th Congress. Since then, we have worked with the leaders of the Judiciary Committee, the Patent…

Joseph I. Lieberman
Sen. Joseph I. LiebermanD-CT · Jan 25, 2011

Mr. President, today, I introduced legislation to protect the coastal plains region of the Arctic National Wildlife Refuge from oil and gas exploration and drilling. Every Congress since the 101st, I…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · Jan 25, 2011

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. I thank the Chair. (The remarks of Mr. Whitehouse pertaining to the introduction of S. 45 are located in…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Jan 25, 2011

I thank the Chair. (The remarks of Ms. Collins pertaining to the introduction of S. 112 are located in today's Record under ``Statements on Introduced Bills and Joint Resolutions.'') I suggest the…

Harry Reid
Sen. Harry ReidD-NV · Jan 25, 2011

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued January 25, 2011

II

112th CONGRESS

1st Session

S. 45

IN THE SENATE OF THE UNITED STATES

January 25 (legislative day, January 5), 2011

Mr. Whitehouse (for himself, Mr. Leahy, Mr. Sanders, Mrs. Boxer, Mr. Durbin, Mr. Brown of Ohio, and Mr. Harkin) 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 provide for the taxation of income of controlled foreign corporations attributable to imported property.

1.

Short title

This Act may be cited as the Offshoring Prevention Act.

2.

Taxation of income of controlled foreign corporations attributable to imported property

(a)

General Rule

Subsection (a) of section 954 of the Internal Revenue Code of 1986 is amended by striking the period at the end of paragraph (5) and inserting , and, by redesignating paragraph (5) as paragraph (4), and by adding at the end the following new paragraph:

(5)

imported property income for the taxable year (determined under subsection (j) and reduced as provided in subsection (b)(5)).

.

(b)

Definition of Imported Property Income

Section 954 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(j)

Imported Property Income

(1)

In general

For purposes of subsection (a)(5), the term imported property income means income (whether in the form of profits, commissions, fees, or otherwise) derived in connection with—

(A)

manufacturing, producing, growing, or extracting imported property;

(B)

the sale, exchange, or other disposition of imported property; or

(C)

the lease, rental, or licensing of imported property.

Such term shall not include any foreign oil and gas extraction income (within the meaning of section 907(c)) or any foreign oil related income (within the meaning of section 907(c)).
(2)

Imported property

For purposes of this subsection—

(A)

In general

Except as otherwise provided in this paragraph, the term imported property means property which is imported into the United States by the controlled foreign corporation or a related person.

(B)

Imported property includes certain property imported by unrelated persons

The term imported property includes any property imported into the United States by an unrelated person if, when such property was sold to the unrelated person by the controlled foreign corporation (or a related person), it was reasonable to expect that—

(i)

such property would be imported into the United States; or

(ii)

such property would be used as a component in other property which would be imported into the United States.

(C)

Exception for property subsequently exported

The term imported property does not include any property which is imported into the United States and which—

(i)

before substantial use in the United States, is sold, leased, or rented by the controlled foreign corporation or a related person for direct use, consumption, or disposition outside the United States; or

(ii)

is used by the controlled foreign corporation or a related person as a component in other property which is so sold, leased, or rented.

(D)

Exception for certain agricultural commodities

The term imported property does not include any agricultural commodity which is not grown in the United States in commercially marketable quantities.

(3)

Definitions and special rules

(A)

Import

For purposes of this subsection, the term import means entering, or withdrawal from warehouse, for consumption or use. Such term includes any grant of the right to use intangible property (as defined in section 936(h)(3)(B)) in the United States.

(B)

United states

For purposes of this subsection, the term United States includes the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

(C)

Unrelated person

For purposes of this subsection, the term unrelated person means any person who is not a related person with respect to the controlled foreign corporation.

(D)

Coordination with foreign base company sales income

For purposes of this section, the term foreign base company sales income shall not include any imported property income.

.

(c)

Separate Application of Limitations on Foreign Tax Credit for Imported Property Income

(1)

In general

Paragraph (1) of section 904(d) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph:

(B)

imported property income, and

.

(2)

Imported property income defined

Paragraph (2) of section 904(d) of such Code is amended by redesignating subparagraphs (I), (J), and (K) as subparagraphs (J), (K), and (L), respectively, and by inserting after subparagraph (H) the following new subparagraph:

(I)

Imported property income

The term imported property income means any income received or accrued by any person which is of a kind which would be imported property income (as defined in section 954(j)).

.

(3)

Conforming amendment

Clause (ii) of section 904(d)(2)(A) of such Code is amended by inserting or imported property income after passive category income.

(d)

Technical Amendments

(1)

Clause (iii) of section 952(c)(1)(B) of the Internal Revenue Code of 1986 is amended—

(A)

by redesignating subclauses (II), (III), (IV), and (V) as subclauses (III), (IV), (V), and (VI), and

(B)

by inserting after subclause (I) the following new subclause:

(II)

imported property income,

.

(2)

The last sentence of paragraph (4) of section 954(b) of such Code is amended by striking subsection (a)(5) and inserting subsection (a)(4).

(3)

Paragraph (5) of section 954(b) of such Code is amended by striking and the foreign base company oil related income and inserting the foreign base company oil related income, and the imported property income.

(e)

Effective Date

The amendments made by this section shall apply to taxable years of foreign corporations beginning after the date of the enactment of this Act, and to taxable years of United States shareholders within which or with which such taxable years of such foreign corporations end.