[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8274 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 8274

To amend the Internal Revenue Code of 1986 to encourage the transfer of 
  intangible property from controlled foreign corporations to United 
                          States shareholders.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 7, 2024

  Mr. LaHood (for himself, Mr. Ferguson, Mr. Smith of Nebraska, Mrs. 
 Miller of West Virginia, Ms. Tenney, and Mr. Feenstra) 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 the transfer of 
  intangible property from controlled foreign corporations to United 
                          States shareholders.

    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 ``Bringing Back American Jobs Through 
Intellectual Property Repatriation Act''.

SEC. 2. SPECIAL RULES FOR TRANSFERS OF INTANGIBLE PROPERTY FROM 
              CONTROLLED FOREIGN CORPORATIONS TO UNITED STATES 
              SHAREHOLDERS.

    (a) In General.--Subpart F of part III of subchapter N of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 966. TRANSFERS OF INTANGIBLE PROPERTY TO UNITED STATES 
              SHAREHOLDERS.

    ``(a) In General.--If a controlled foreign corporation holds 
intangible property on the date of the enactment of this section and 
thereafter distributes such property to a domestic corporation which is 
a United States shareholder with respect to such controlled foreign 
corporation--
            ``(1) for purposes of part I of subchapter C and any other 
        provision of this title specified by the Secretary, the fair 
        market value of such property on the date of such distribution 
        shall be treated as not exceeding the adjusted basis of such 
        property immediately before such distribution, and
            ``(2) if any portion of such distribution is not a 
        dividend--
                    ``(A) no gain shall be recognized by such United 
                States shareholder with respect to such distribution, 
                and
                    ``(B) the adjusted basis of such property in the 
                hands of such United States shareholder immediately 
                after such distribution shall be the adjusted basis of 
                such property in the hands of such controlled foreign 
                corporation immediately before such distribution 
                reduced by the amount (if any) of gain not recognized 
                by reason of subparagraph (A) (determined after the 
                application of paragraph (1)).
    ``(b) Intangible Property.--For purposes of this section, the term 
`intangible property' means any--
            ``(1) patent, copyright, license, invention, formula, 
        process, design, pattern, know-how, or format,
            ``(2) method, program, system, procedure, campaign, survey, 
        study, forecast, estimate, or technical data,
            ``(3) computer software (as defined in section 
        197(e)(3)(B)), or
            ``(4) any similar item, which has substantial value 
        independent of the services of any individual.
    ``(c) Application to Transfers of Intangible Property to a United 
States Shareholder Through a Chain of Controlled Foreign 
Corporations.--In the case of intangible property which is held by a 
controlled foreign corporation on the date of the enactment of this 
section and is thereafter distributed to another controlled foreign 
corporation, the rules of subsection (a) shall apply with respect to 
such distribution (and any subsequent distribution of such property by 
a controlled foreign corporation to another controlled foreign 
corporation or United States shareholder) if, not later than 180 days 
after the date of such first distribution, such property is distributed 
to a domestic corporation which is a United States shareholder with 
respect to each such controlled foreign corporation.''.
    (b) Conforming Amendments.--
            (1) Section 197(f)(2)(B)(i) of such Code is amended by 
        inserting ``966(a),'' after ``731,''.
            (2) The table of sections for subpart F of part III of 
        subchapter N of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 966. Transfers of intangible property to United States 
                            shareholders.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made in taxable years of foreign corporations 
beginning after December 31, 2023, and to taxable years of United 
States shareholders in which or with which such taxable years of 
foreign corporations end.
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