[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5473 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5473

  To amend the Internal Revenue Code of 1986 to exclude from personal 
   holding company income dividends which are received from foreign 
       affiliates and which are reinvested in the United States.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 28, 2010

Ms. Linda T. Sanchez of California 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 exclude from personal 
   holding company income dividends which are received from foreign 
       affiliates and which are reinvested in the United States.

    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 ``Investing Income at Home Act of 
2010''.

SEC. 2. EXCLUSION FROM PERSONAL HOLDING COMPANY INCOME OF DIVIDENDS 
              WHICH ARE RECEIVED FROM FOREIGN AFFILIATES AND WHICH ARE 
              REINVESTED IN THE UNITED STATES.

    (a) In General.--Paragraph (1) of section 543(a) of the Internal 
Revenue Code of 1986 is amended by striking ``and'' at the end of 
subparagraph (C), by striking the period at the end of subparagraph (D) 
and inserting ``, and'', and by adding at the end the following new 
subparagraph:
                    ``(E) foreign affiliate dividends designated for 
                reinvestment in the United States (within the meaning 
                of subsection (b)(5)).''.
    (b) Foreign Affiliate Dividends Designated for Reinvestment.--
Subsection (b) of section 543 of such Code is amended by adding at the 
end the following new paragraph:
            ``(5) Foreign affiliate dividends designated for 
        reinvestment.--For purposes of subsection (a)(1)(E)--
                    ``(A) In general.--A dividend is described in 
                subsection (a)(1)(E) if--
                            ``(i) the dividend is received by the 
                        taxpayer from an affiliated foreign 
                        corporation, and
                            ``(ii) the taxpayer designates (on the 
                        taxpayer's return for the taxable year in which 
                        received) the dividend for reinvestment in the 
                        United States (as described in section 
                        965(b)(4)(B)), including as a source for 
                        funding compensation and benefits for both 
                        existing and newly hired workers (other than 
                        for executives), by the taxpayer or 1 or more 
                        members of an affiliated group which includes 
                        the taxpayer.
                    ``(B) Affiliated foreign corporation.--For purposes 
                of subparagraph (A), the term `affiliated foreign 
                corporation' means any foreign corporation if stock 
                possessing at least 10 percent of the total combined 
                voting power of all outstanding classes of stock 
                entitled to vote is owned in the aggregate by the 
                taxpayer and members of the an affiliated group which 
                includes the taxpayer.
                    ``(C) Failure to reinvest within 5 years.--If, at 
                the end of the 5th taxable year following the taxable 
                year in which the dividend is received, the dividend is 
                not reinvested in the United States as described in 
                subparagraph (A)(ii), the taxpayer shall pay a tax 
                equal to the sum of--
                            ``(i) the product of--
                                    ``(I) the amount of the dividend 
                                not so reinvested, and
                                    ``(II) the rate of tax in effect 
                                under section 541 on the date that the 
                                dividend was received, and
                            ``(ii) the amount of interest that would be 
                        assessed under section 6601 if the amount of 
                        tax determined under clause (i) were treated as 
                        an underpayment for the taxable year in which 
                        the dividend was received.
                    ``(D) Affiliated group.--For purposes of this 
                paragraph, the term `affiliated group' has the meaning 
                given to such term by section 1504(a).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to dividends received in taxable years beginning on or after the 
date of the enactment of this Act.
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