I 112th CONGRESS 1st Session H. R. 1036 IN THE HOUSE OF REPRESENTATIVES March 11, 2011 Mr. Bilbray 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 allow temporarily a reduced rate of tax with respect to repatriated foreign earnings.

1.

Short title

This Act may be cited as the The Job Creation and Innovation Investment Act of 2011.

2.

Extension and modification of dividends received deduction for certain repatriated foreign earnings

(a)

In general

Subsection (f) of section 965 of the Internal Revenue Code of 1986 is amended to read as follows: (f)

Election

The taxpayer may elect to apply this section to— (1)the taxpayer’s last taxable year which begins before the date of the enactment of the Reinvest in America Act of 2011, or (2)the taxpayer’s first taxable year which begins during the 1-year period beginning on such date. Such election may be made for a taxable year only if made on or before the due date (including extensions) for filing the return of tax for such taxable year.. (b)

Elimination of limitation

Subsection (b) of section 965 of such Code is amended by striking paragraph (1). (c)

Modification of investment requirement

Paragraph (4) of section 965(b) of the Internal Revenue Code of 1986 is amended to read as follows: (4)

Special rule for investment in United States pursuant to qualified domestic reinvestment plan

(A)

In general

In the case of any dividend (or portion thereof)— (i)with respect to which the taxpayer elects the application of this paragraph, and (ii)which is reinvested in the United States pursuant to a qualified domestic reinvestment plan, subsection (a)(1) shall be applied by substituting 100 percent for 85 percent.(B)

Qualified domestic reinvestment plan

For purposes of this paragraph— (i)

In general

The term qualified domestic reinvestment plan means a plan which— (I)is approved by the taxpayer’s president, chief executive officer, or comparable official before the payment of such dividend and subsequently approved by the taxpayer’s board of directors, management committee, executive committee, or similar body, and (II)provides for the reinvestment of such dividend (or portion thereof) in the United States, not later than 3 years after the payment of such dividend, as a source funding for research and development expenses, expansion of facilities, proof of concept centers, early stage venture capital investment (including original investment), or manufacturing start-up costs (including plant, equipment, infrastructure, and contract manufacturing). (ii)

Proof of concept center

The term proof of concept center includes activities within public and private institutions and universities, which advance inventions by assessing and validating commercial feasibility of products or processes, including prototype development. . (d)

Threshold period

Section 965 of such Code is amended by striking June 30, 2003 each place it occurs and inserting June 30, 2010. (e)

Indebtedness determination date

Subparagraph (B) of section 965(b)(3) of such Code is amended by striking October 3, 2004 and inserting February 1, 2011. (f)

Conforming amendments

(1)Subparagraphs (A)(ii)(I) and (C)(ii)(II) of section 965(c)(2) of such Code are each amended by striking (b)(2)(B) and inserting (b)(1)(B). (2)Subclause (II) of section 965(c)(2)(C)(ii) of such Code is amended by striking (b)(2) and inserting (b)(1). (3)Paragraph (5) of section 965(c) of such Code is amended— (A)by striking subparagraphs (B) and (C), and (B)by striking (5) Controlled groups and all that follows through All United States shareholders and inserting the following: (5)

Controlled groups

All United States shareholders . (g)

Effective date

The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.