1.This Act may be cited as the
American Shipping Reinvestment Act of
2009
.
2.Repeal of qualified shipping investment
withdrawal rules
(a)Section 955 of the Internal Revenue Code of
1986 (relating to withdrawal of previously excluded subpart F income from
qualified investment) is hereby repealed.
(b)
(1)Section 951(a)(1)(A) of the Internal
Revenue Code of 1986 is amended by adding and
at the end of
clause (i) and by striking clause (iii).
(2)Section 951(a)(1)(A)(ii) is amended by
striking , and
at the end and inserting , except that in
applying this clause amounts invested in less developed country corporations
described in section 955(c)(2) (as so in effect) shall not be treated as
investments in less developed countries.
.
(3)Section 951(a)(3) of such Code (relating to
the limitation on pro rata share of previously excluded subpart F income
withdrawn from investment) is hereby repealed.
(4)Section 964(b) of such Code is amended by
striking , 955,
.
(5)The table of sections for subpart F of part
III of subchapter N of chapter 1 of such Code is amended by striking the item
relating to section 955.
(c)The amendments made by
this section shall apply to taxable years of controlled foreign corporations
ending on or after the date of the enactment of this Act, and to taxable years
of United States shareholders in which or with which such taxable years of
controlled foreign corporations end.
3.One-time temporary dividends received
deduction for previously untaxed foreign base company shipping income
(a)In the case of a corporation which is a
United States shareholder and for which an election under this section is made
for the taxable year, for purposes of the Internal Revenue Code of 1986, there
shall be allowed as a deduction in computing taxable income under section 63 of
such Code an amount equal to 85 percent of the cash distributions which are
received during such taxable year by such shareholder from controlled foreign
corporations to the extent that the distributions are attributable to
income—
(1)which was derived by the controlled foreign
corporation in taxable years beginning before January 1, 2005, and
(2)which would, without regard to the year
earned, be described in section 954(f) (as in effect before the enactment of
the American Jobs Creation Act of 2004).
(b)A rule similar to the rule of section
965(a)(2) of the Internal Revenue Code of 1986 shall apply, determined by
treating cash distributions which are so attributable as cash dividends.
(c)The amount of dividends taken into account
under this section shall not exceed the amount permitted to be taken into
account under paragraphs (1), (3) (determined by substituting December
31, 2008
for October 3, 2004
), and (4) of section 965(b)
of the Internal Revenue Code of 1986, determined as if such paragraphs applied
to this section.
(d)Taxpayer election and
designationFor purposes of
subsection (a), a taxpayer may, on its return for the taxable year to which
this section applies—
(1)elect to apply paragraph (3) of section
959(c) of the Internal Revenue Code of 1986 before paragraphs (1) and (2)
thereof, and
(2)designate the extent, if any, to which a
cash distribution reduces a controlled foreign corporation’s earnings and
profits attributable to—
(A)foreign base company shipping income
(determined under section 954(f) of the Internal Revenue Code of 1986 as in
effect before the enactment of the American Jobs Creation Act of 2004),
or
(B)other earnings and profits.
(e)
(1)The taxpayer may elect to apply this
section to—
(A)the taxpayer’s last taxable year which
begins before the date of the enactment of this Act, or
(B)the taxpayer’s first taxable year which
begins during the 1-year period beginning on such date.
(2)Timing of election and one-time
electionSuch election may be
made for a taxable year—
(A)only if made on or before the due date
(including extensions) for filing the return of tax for such taxable year,
and
(B)only if no election has been made under
this section or section 965 of the Internal Revenue Code of 1986 with respect
to the same distribution for any other taxable year of the taxpayer.
(f)Reduction in benefits for failure To
maintain employment levels
(1)If, during the period consisting of the
calendar month in which the taxpayer first receives a distribution described in
subsection (a) and the succeeding 23 calendar months, the taxpayer does not
maintain an average employment level at least equal to the taxpayer’s prior
average employment, an additional amount equal to $25,000 multiplied by the
number of employees by which the taxpayer's average employment level during
such period falls below the prior average employment (but not exceeding the
aggregate amount allowed as a deduction pursuant to subsection (a)) shall be
taken into account as income by the taxpayer during the taxable year that
includes the final day of such period.
(2)For purposes of this paragraph, the
taxpayer’s prior average employment
shall be the average number
of full time equivalent employees of the taxpayer during the period consisting
of the 24 calendar months immediately preceding the calendar month in which the
taxpayer first receives a distribution described in subsection (a).
(3)In determining the taxpayer’s average
employment level and prior average employment, all domestic members of a
controlled group (as defined in section 264(e)(5)(B) of the Internal Revenue
Code of 1986) shall be treated as a single taxpayer.
(g)Rules similar to the rules of subsections
(d) and (e) and paragraphs (3), (4), and (5) of subsection (c) of section 965
of the Internal Revenue Code of 1986 shall apply for purposes of this
section.
(h)This section shall apply
to taxable years ending on or after the date of the enactment of this
Act.