H.R. 685House115th Congress (2017-2019)In Committee

Bring Jobs Home Act

Introduced January 24, 2017

AI-Generated Summary

Updated April 15, 2026 at 12:01 PM UTC

The Bring Jobs Home Act amends the Internal Revenue Code to encourage companies to move production and other business activities back to the United States. It does this by offering a 20 % tax credit for qualified insourcing costs, while simultaneously disallowing tax deductions for costs associated with outsourcing jobs overseas. The bill applies to all U.S. taxpayers, including corporations and partnerships, and includes special rules for U.S. territories.

Key Provisions

  • Creates a new tax credit (Section 45S) equal to 20 % of qualified “insourcing” expenses incurred when a company moves a business unit from abroad to the United States, or when it relocates a U.S. unit that was eliminated abroad.
  • To claim the credit, a taxpayer must have more full‑time‑equivalent U.S. employees than in the prior year and must follow a written insourcing plan; the credit is taken in the year the plan is completed (or the next year if elected).
  • Adds the insourcing credit to the existing general business credit under Section 38, and makes the credit effective for expenses incurred after the law’s enactment.
  • Denies any tax deduction for “outsourcing” expenses (Section 280I) that a company incurs when it eliminates a U.S. business unit or establishes a unit abroad, effectively penalizing offshoring.
  • Specifies that outsourcing expenses cannot be depreciated or amortized, and adjusts Subpart F earnings calculations for controlled foreign corporations to ignore such expenses.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

January 24, 2017

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HouseIntro Referral

Introduced in House

January 24, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

January 24, 2017

Floor Debate

19 members

What members said about H.R. 685 on the floor

10 Republicans9 Democrats
Stacey E. Plaskett
Rep. Stacey E. PlaskettD-VI · Jul 24, 2017

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include any extraneous material on the subject of my Special Order. Mr.…

Jared Polis
Rep. Jared PolisD-CO-2 · Jun 21, 2017

Mr. Speaker, I yield myself such time as I may consume, and I thank the gentleman for yielding me the customary 30 minutes. First, I want to rise in agreement with my friend from Washington's…

Dan Newhouse
Rep. Dan NewhouseR-WA-4 · Jun 21, 2017

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 392 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

Liz Cheney
Rep. Liz CheneyR-WY · Jul 19, 2017

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 454 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

Louise McIntosh Slaughter
Rep. Louise McIntosh SlaughterD-NY-25 · Jun 29, 2017

Mr. Speaker, I thank the gentleman from Texas (Mr. Sessions) for yielding me the customary 30 minutes, and I yield myself such time as I may consume. Mr. Speaker, all of us mourn the death of Kate…

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Pete Sessions
Rep. Pete SessionsR-TX-32 · Jun 29, 2017

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 415 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · Jul 24, 2017

Mr. Speaker, I thank my colleague Congresswoman Plaskett for hosting this special order for members of the Congressional Black Caucus (CBC) to speak about the first 6 months of Republicans' failure…

Louise McIntosh Slaughter
Rep. Louise McIntosh SlaughterD-NY-25 · Jul 19, 2017

Mr. Speaker, I yield myself such time as I may consume, and I thank the gentlewoman from Wyoming for yielding me the customary 30 minutes. Mr. Speaker, the legislation before us today would put some…

Zoe Lofgren
Rep. Zoe LofgrenD-CA-19 · Jun 29, 2017

Mr. Speaker, this Saturday marks the 2-year anniversary of the death of Kate Steinle, which was a tragedy for her family and for our entire community. My colleague from California has mentioned the…

Steve King
Rep. Steve KingR-IA-4 · Jun 29, 2017

Mr. Speaker, I thank the gentleman from Texas for yielding. Mr. Speaker, I would like to reciprocate in a compliment to the gentleman from Texas, who stands here and leads in this Congress every day,…

Liz Cheney
Rep. Liz CheneyR-WY · Jun 21, 2017

Mr. Speaker, I would like to thank very much my colleague from Washington particularly for calling me ``young.'' I appreciate that always. Mr. Speaker, I have enjoyed listening to the colloquy taking…

Donald M. Payne, Jr.
Rep. Donald M. Payne, Jr.D-NJ-10 · Jul 24, 2017

Mr. Speaker, let me first thank the gentlewoman from the Virgin Islands, who has demonstrated great leadership in leading these CBC Special Order hours. It is not an easy task, but she has done…

Lloyd Doggett
Rep. Lloyd DoggettD-TX-35 · Jun 21, 2017

Will the gentleman yield? Mr. Speaker, I would just ask the gentleman a couple questions to underline a couple of the really important points you made about the context in which this bill is…

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Dwight Evans
Rep. Dwight EvansD-PA-2 · Jul 24, 2017

Mr. Speaker, I thank my colleague from the Virgin Islands for her leadership in terms of being provided this opportunity that she has demonstrated clearly that she has been leading these efforts for…

Brian Babin
Rep. Brian BabinR-TX-36 · Jun 29, 2017

Mr. Speaker, I rise today to speak in strong support of Kate's Law and the No Sanctuary for Criminals Act. This Saturday, July 1, marks 2 years since the tragic death of 32- year-old Kate Steinle,…

Bill Pascrell, Jr.
Rep. Bill Pascrell, Jr.D-NJ-9 · Jun 29, 2017

Mr. Speaker, because I listened very carefully, I hope that, while I am opposed to the rule, we are debating a bill, in my estimation, to reinforce negative stereotypes about the immigrants. I have…

Bill Pascrell, Jr.
Rep. Bill Pascrell, Jr.D-NJ-9 · Jul 19, 2017

Mr. Speaker, I thank the ranking member and spokesman for the other side. Before I give my remarks, I don't think this is an either/or proposition, Mr. Speaker. Some of the things that my friend from…

Tom McClintock
Rep. Tom McClintockR-CA-4 · Jun 29, 2017

Mr. Speaker, I thank the gentleman for yielding me time. Mr. Speaker, Kate's Law, the bill that this rule brings to the floor, is very personal to the people of my district because of two other names…

Bill Pascrell, Jr.
Rep. Bill Pascrell, Jr.D-NJ-9 · Jun 21, 2017

Mr. Speaker, I rise in opposition to the rule. Here we are again. We are debating a bill to roll back regulations that protect the public, if I am not mistaken, Mr. Speaker. I think we are a little…

Don Young
Rep. Don YoungR-AK · Jul 19, 2017

Mr. Speaker, I listened to people on the other side. This is a good rule. I want to compliment the Rules Committee. It is crucially important to recognize that this is an issue that means lives: 19…

Kevin McCarthy
Rep. Kevin McCarthyR-CA-23 · Jun 29, 2017

Mr. Speaker, I thank the gentleman for yielding and for the continuing work he does as the chairman of the Rules Committee. It is very important work for this Nation and the House. Mr. Speaker, there…

Steve King
Rep. Steve KingR-IA-4 · Jul 19, 2017

Mr. Speaker, I am privileged to be recognized by the gentlewoman from Wyoming, and I rise in support of this combined rule that we have here. I thought it was important that I speak to some of the…

Jeff Duncan
Rep. Jeff DuncanR-SC-3 · Jun 29, 2017

Mr. Speaker, I thank Chairman Sessions for his continued leadership here in the House of Representatives, and especially on this issue in the Rules Committee. Mr. Speaker, I rise today in support of…

Ken Buck
Rep. Ken BuckR-CO-4 · Jun 21, 2017

Mr. Speaker, I thank the gentleman from Washington (Mr. Newhouse), my colleague on the Rules Committee, for yielding. Mr. Speaker, in the West, water is life. Coloradans must wisely steward the…

Bill Text

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Introduced in HouseIssued January 24, 2017

I

115th CONGRESS

1st Session

H. R. 685

IN THE HOUSE OF REPRESENTATIVES

January 24, 2017

Mr. Pascrell (for himself, Mr. Swalwell of California, Ms. Norton, Ms. Brownley of California, Ms. Michelle Lujan Grisham of New Mexico, Mr. Pallone, Mr. Kind, and Mr. Larson of Connecticut) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to encourage domestic insourcing and discourage foreign outsourcing.

1.

Short title

This Act may be cited as the Bring Jobs Home Act.

2.

Credit for insourcing expenses

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

45S.

Credit for insourcing expenses

(a)

In general

For purposes of section 38, the insourcing expenses credit for any taxable year is an amount equal to 20 percent of the eligible insourcing expenses of the taxpayer which are taken into account in such taxable year under subsection (d).

(b)

Eligible insourcing expenses

For purposes of this section—

(1)

In general

The term eligible insourcing expenses means—

(A)

eligible expenses paid or incurred by the taxpayer in connection with the elimination of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located outside the United States, and

(B)

eligible expenses paid or incurred by the taxpayer in connection with the establishment of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located within the United States,

if such establishment constitutes the relocation of business unit so eliminated. For purposes of the preceding sentence, a relocation shall not be treated as failing to occur merely because such elimination occurs in a different taxable year than such establishment.
(2)

Eligible expenses

The term eligible expenses means—

(A)

any amount for which a deduction is allowed to the taxpayer under section 162, and

(B)

permit and license fees, lease brokerage fees, equipment installation costs, and, to the extent provided by the Secretary, other similar expenses.

Such term does not include any compensation which is paid or incurred in connection with severance from employment and, to the extent provided by the Secretary, any similar amount.
(3)

Business unit

The term business unit means—

(A)

any trade or business, and

(B)

any line of business, or functional unit, which is part of any trade or business.

(4)

Expanded affiliated group

The term expanded affiliated group means an affiliated group as defined in section 1504(a), determined without regard to section 1504(b)(3) and by substituting more than 50 percent for at least 80 percent each place it appears in section 1504(a). A partnership or any other entity (other than a corporation) shall be treated as a member of an expanded affiliated group if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this paragraph).

(5)

Expenses must be pursuant to insourcing plan

Amounts shall be taken into account under paragraph (1) only to the extent that such amounts are paid or incurred pursuant to a written plan to carry out the relocation described in paragraph (1).

(6)

Operating expenses not taken into account

Any amount paid or incurred in connection with the ongoing operation of a business unit shall not be treated as an amount paid or incurred in connection with the establishment or elimination of such business unit.

(c)

Increased domestic employment requirement

No credit shall be allowed under this section unless the number of full-time equivalent employees of the taxpayer for the taxable year for which the credit is claimed exceeds the number of full-time equivalent employees of the taxpayer for the last taxable year ending before the first taxable year in which such eligible insourcing expenses were paid or incurred. For purposes of this subsection, full-time equivalent employees has the meaning given such term under section 45R(d) (and the applicable rules of section 45R(e)), determined by only taking into account wages (as otherwise defined in section 45R(e)) paid with respect to services performed within the United States. All employers treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer for purposes of this subsection.

(d)

Credit allowed upon completion of insourcing plan

(1)

In general

Except as provided in paragraph (2), eligible insourcing expenses shall be taken into account under subsection (a) in the taxable year during which the plan described in subsection (b)(5) has been completed and all eligible insourcing expenses pursuant to such plan have been paid or incurred.

(2)

Election to apply employment test and claim credit in first full taxable year after completion of plan

If the taxpayer elects the application of this paragraph, eligible insourcing expenses shall be taken into account under subsection (a) in the first taxable year after the taxable year described in paragraph (1).

(e)

Possessions treated as part of the United States

For purposes of this section, the term United States shall be treated as including each possession of the United States (including the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands).

(f)

Regulations

The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.

.

(b)

Credit To Be Part of General Business Credit

Section 38(b) of such Code is amended by striking plus at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting , plus, and by adding at the end the following new paragraph:

(37)

the insourcing expenses credit determined under section 45S(a).

.

(c)

Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

.

(d)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.

(e)

Application to United States possessions

(1)

Payments to possessions

(A)

Mirror code possessions

The Secretary of the Treasury shall make periodic payments to each possession of the United States with a mirror code tax system in an amount equal to the loss to that possession by reason of section 45S of the Internal Revenue Code of 1986. Such amount shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.

(B)

Other possessions

The Secretary of the Treasury shall make annual payments to each possession of the United States which does not have a mirror code tax system in an amount estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of section 45S of such Code if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payment to the residents of such possession.

(2)

Coordination with credit allowed against United States income taxes

No credit shall be allowed against United States income taxes under section 45S of such Code to any person—

(A)

to whom a credit is allowed against taxes imposed by the possession by reason of such section, or

(B)

who is eligible for a payment under a plan described in paragraph (1)(B).

(3)

Definitions and special rules

(A)

Possessions of the United States

For purposes of this section, the term possession of the United States includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands.

(B)

Mirror code tax system

For purposes of this section, the term mirror code tax system means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.

(C)

Treatment of payments

For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from sections referred to in such section 1324(b)(2).

3.

Denial of deduction for outsourcing expenses

(a)

In general

Part IX of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

280I.

Outsourcing expenses

(a)

In general

No deduction otherwise allowable under this chapter shall be allowed for any specified outsourcing expense.

(b)

Specified outsourcing expense

For purposes of this section—

(1)

In general

The term specified outsourcing expense means—

(A)

any eligible expense paid or incurred by the taxpayer in connection with the elimination of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located within the United States, and

(B)

any eligible expense paid or incurred by the taxpayer in connection with the establishment of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located outside the United States,

if such establishment constitutes the relocation of business unit so eliminated. For purposes of the preceding sentence, a relocation shall not be treated as failing to occur merely because such elimination occurs in a different taxable year than such establishment.
(2)

Application of certain definitions and rules

(A)

Definitions

For purposes of this section, the terms eligible expenses, business unit, and expanded affiliated group shall have the respective meanings given such terms by section 45S(b).

(B)

Operating expenses not taken into account

A rule similar to the rule of section 45S(b)(6) shall apply for purposes of this section.

(c)

Special rules

(1)

Application to deductions for depreciation and amortization

In the case of any portion of a specified outsourcing expense which is not deductible in the taxable year in which paid or incurred, such portion shall neither be chargeable to capital account nor amortizable.

(2)

Possessions treated as part of the United States

For purposes of this section, the term United States shall be treated as including each possession of the United States (including the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands).

(d)

Regulations

The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations which provide (or create a rebuttable presumption) that certain establishments of business units outside the United States will be treated as relocations (based on timing or such other factors as the Secretary may provide) of business units eliminated within the United States.

.

(b)

Limitation on subpart F income of controlled foreign corporations determined without regard to specified outsourcing expenses

Section 952(c) of such Code is amended by adding at the end the following new paragraph:

(4)

Earnings and profits determined without regard to specified outsourcing expenses

For purposes of this subsection, earnings and profits of any controlled foreign corporation shall be determined without regard to any specified outsourcing expense (as defined in section 280I(b)).

.

(c)

Clerical amendment

The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item:

.

(d)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.