[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1874 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 1874
To provide Federal contracting preferences for, and a reduction in the
rate of income tax imposed on, Patriot corporations, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 2, 2009
Ms. Schakowsky (for herself, Mr. Hare, Mr. Hall of New York, Mr.
Michaud, Ms. Sutton, Mr. Massa, and Ms. Woolsey) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Oversight and Government Reform,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
To provide Federal contracting preferences for, and a reduction in the
rate of income tax imposed on, Patriot corporations, and for other
purposes.
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 ``Patriot Corporations of America Act
of 2009''.
SEC. 2. FEDERAL CONTRACTING PREFERENCE FOR PATRIOT CORPORATIONS.
After December 31, 2009, in the evaluation of bids or proposals for
a contract for the procurement of goods or services, the Federal
Government shall provide a preference to any entity that is a Patriot
corporation (as defined in section 11(e) of the Internal Revenue Code
of 1986, as added by section 3 of this Act), unless the award of the
contract to such entity would jeopardize the national security
interests of the United States.
SEC. 3. REDUCTION IN RATE OF INCOME TAX FOR PATRIOT CORPORATIONS.
(a) In General.--Section 11 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
``(e) Patriot Corporations.--
``(1) Rate reduction for patriot corporations.--In the case
of a Patriot corporation, the amount of the tax imposed under
subsection (a) (determined without regard to this paragraph)
shall be reduced (but not below zero) by an amount equal to 5
percent of the taxable income of such corporation.
``(2) Patriot corporation defined.--For purposes of this
subsection--
``(A) In general.--The term `Patriot corporation'
means, with respect to any taxable year, any
corporation which is certified by the Secretary as
meeting the requirements of subparagraph (B) for such
taxable and the preceding taxable year.
``(B) Requirements.--A corporation meets the
requirements of this subparagraph, with respect to any
taxable year, if such corporation--
``(i) produces in the United States at
least 90 percent of the goods and services sold
by such corporation during such taxable year,
``(ii) does not provide compensation to any
management personnel of such corporation at a
level of compensation which exceeds 10,000
percent of the level of compensation of the
full-time employee of such corporation with the
lowest level of compensation during such
taxable year,
``(iii) conducts at least 50 percent of the
research and development conducted by such
corporation during such taxable year
(determined on the basis of cost) in the United
States,
``(iv) has contributed at least 5 percent
of wages paid by the corporation during the
taxable year to a portable pension fund for the
benefit of employees of the corporation,
``(v) has paid at least 70 percent of the
cost of a standardized health insurance plan
for the benefit of employees of the corporation
during such taxable year,
``(vi) has maintained at all times during
such taxable year neutrality in employee
organizing drives and has in effect a policy to
that effect,
``(vii) provides full differential salary
and insurance benefits for all National Guard
and Reserve employees who are called to active
duty,
``(viii) has not been (at any time during
such taxable year) in violation of appropriate
Federal regulations including those related to
the environment, workplace safety, labor
relations, and consumer protections, as
determined by the Secretary, and
``(ix) has not been in violation of any
other regulations specified by the Secretary.
``(C) Certification process.--Not later than 90
days after the date of the enactment of this
subsection, the Secretary shall establish an
application and certification process to annually
certify corporations as Patriot corporations. Such
certifications shall be made at such time and on the
basis of such materials as the Secretary determines
appropriate.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
(c) Certification Allowed for Year Preceding Effective Date of Rate
Reduction.--For purposes of section 11(e) of the Internal Revenue Code
of 1986, as added by this section, the Secretary may certify a
corporation as a Patriot corporation for the last taxable year of the
corporation beginning on or before December 31, 2009, if the
corporation meets the requirements of paragraph (2)(B) of such section
for such taxable year.
SEC. 4. TAX AVOIDANCE FOREIGN CORPORATIONS SUBJECT TO UNITED STATES
INCOME TAX.
(a) In General.--Paragraph (4) of section 7701(a) of the Internal
Revenue Code of 1986 (defining domestic) is amended to read as follows:
``(4) Domestic.--
``(A) In general.--Except as provided in
subparagraph (B), the term `domestic' when applied to a
corporation or partnership means created or organized
in the United States or under the law of the United
States or of any State unless, in the case of a
partnership, the Secretary provides otherwise by
regulations.
``(B) Tax avoidance foreign corporations treated as
domestic.--Any corporation which would (but for this
subparagraph) be treated as a foreign corporation shall
be treated as a domestic corporation if the Secretary
determines that such corporation was created or
organized as a foreign corporation (instead of as a
domestic corporation) principally for the purpose of
avoiding being treated as a domestic corporation under
this title.''.
(b) Effective Dates.--The amendment made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 5. REDUCTION IN BENEFIT OF RATE REDUCTION FOR FAMILIES WITH
INCOMES OVER $1,000,000.
(a) General Rule.--Section 1 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(j) Reduction in Benefit of Rate Reduction for Families With
Incomes Over $1,000,000.--
``(1) In general.--If the adjusted gross income of a
taxpayer exceeds the threshold amount, the tax imposed by this
section (determined without regard to this subsection) shall be
increased by an amount equal to 4.6 percent of so much of the
adjusted gross income as exceeds the threshold amount.
``(2) Threshold amounts.--For purposes of this subsection,
the term `threshold amount' means--
``(A) $1,000,000 in the case of a joint return, and
``(B) $500,000 in the case of any other return.
``(3) Special rule.--For purposes of section 55, the amount
of the regular tax shall be determined without regard to this
subsection.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2008.
(c) Application of EGTRRA Sunset.--The amendment made by this
section shall be subject to title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 to the same extent and in the same
manner as section 101 of such Act.
(d) Section 15 Not To Apply.--The amendment made by subsection (a)
shall not be treated as a change in a rate of tax for purposes of
section 15 of the Internal Revenue Code of 1986.
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