[Congressional Record Volume 161, Number 87 (Tuesday, June 2, 2015)]
[Senate]
[Pages S3457-S3461]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mrs. BOXER (for herself and Mr. Booker):
S. 1476. A bill to require States to report to the Attorney General
certain information regarding shooting incidents involving law
enforcement officers, and for other purposes; to the Committee on the
Judiciary.
Mr. BOOKER. Mr. President, I am proud to join with Senator Boxer to
introduce the Police Reporting of Information, Data, and Evidence Act
of 2015, PRIDE Act, a critical data collection bill designed to advance
public safety, strengthen police-community relations, and foster mutual
trust and respect. I thank Senator Boxer for her leadership on this
issue.
A critical issue in our Nation today is the issue of trust between
law enforcement and the communities they serve. Tragic events across
the country--in New York, Ferguson, North Charleston, Baltimore, and
subsequent protests--remind us how critical trust is to the fabric of a
democracy. These incidents raised the public's awareness and sparked a
national debate about how police and citizens interact and how they
should interact. But the issue is not unique now. The Kerner
Commission's 1968 report on urban violence declared that minorities
believed a ``double standard'' of justice and protection existed for
whites and blacks. Sadly, that distrust continues today. It is contrary
to who we are and what we stand for.
Our nation was founded on shared and timeless values. Liberty and
justice for all. Equal justice under law. The former was enshrined in
our founding charter. The latter was written on the marble of Supreme
Court. But when any American feels that they have not been treated
fairly, we undermine those values. That makes the issue of police and
community relations a problem for all of us--not just a specific city
or a specific race. It is a problem for the Nation as a whole. We must
do all we can to restore justice to our criminal justice system. That
includes tracking when officers use deadly or serious force against
people in the community.
We must ensure that police officers feel respected and honored. Each
day, law enforcement officers put their lives on the line to keep our
communities safe. They deserve our respect. They should not feel
attacked or undervalued. They routinely make split-second decisions
every day that do not escalate into uses of force. As the senseless
killings of NYPD Officers Rafael Ramos and Wanjian Liu remind us,
officers often serve the public at considerable personal risk. We
should provide them with the tools they need to do their jobs
effectively and safely. That includes tracking the uses of force by
civilians against our men and women in uniform.
To bridge the wide trust gap between law enforcement and citizens, we
must shine a light on the problem. The first step to solve any problem
is to be honest about the facts. We need objective data. We need to
study trends. We need to examine the evidence. That is why I am
encouraged by the words of FBI Director, James Comey, who said ``We
simply must find ways to see each other more clearly. Part of that has
to involve collecting and sharing better
[[Page S3458]]
information about encounters between police and citizens, especially
violent encounters.''
For too long, the way we have collected information and data from
States and local governments on violent encounters between law
enforcement and civilians has been inconsistent. Under current law,
demographic data regarding officer-involved shootings is inconsistently
reported to the FBI under the Uniform Crime Reporting Program.
According to a study by the Washington Post this month, since 2011,
less than three percent of the Nation's 18,000 State and local police
agencies reported fatal shootings by their officers to the FBI. That is
unacceptable. Incomplete and unreliable reporting makes it tougher to
get a true scope of the problem and more difficult to obtain a policy
solution.
The PRIDE Act would fix that problem and increase accountability for
law enforcement by creating a comprehensive national data collection
program. It would require law enforcement at the State, local, and
tribal levels to report to the Attorney General information regarding
police-involved shootings and any incident in which use of force by or
against a law enforcement officer or civilian results in serious injury
or death. By making the voluntary reporting of uses of force by, and
against, police officers mandatory, we ensure that more accountability
and transparency will exist between the police and the citizens they
protect.
I have worked closely with Senator Boxer on crafting this
legislation, and appreciate my friend and colleague welcoming several
recommendations to strengthen the bill, including clarifications that
use-of-force policies for law enforcement officers be made publicly
available. I believe this change would promote transparency. It shines
a spotlight on the scope of shootings and uses of force involving
police and civilians, which in turn enhances public confidence in our
justice system.
I also appreciate that the bill includes grant funds for public
awareness campaigns designed to gain information from the public on
uses of force against police officers. This was a recommendation drawn
from being a former mayor. I have seen first-hand how helpful tip
lines, hotlines, and public service announcements can be in helping law
enforcement capture dangerous people. When someone uses violence
against our men and women in uniform, we must respond quickly. That
means we should do all that we can to ensure that information on the
suspect gets out to the public in a timely manner. That way, the
offender can promptly be caught and brought to justice.
Lastly, I recommended the bill include grant funds for use of force
training for law enforcement agencies and personnel, including de-
escalation training. Officers deserve to receive the best and most up
to date training we can offer. They must feel confident that they are
trained to use force in a way that allows them to safely come home to
their families. Equally, the public deserves to have confidence that
when an officer uses force he or she does so appropriately. That means
training officers to ensure that force is a last resort and officers
know how to de-escalate a situation to avoid using force at all.
Many of the bill's provisions were recommendations from the
President's Task Force on 21st Century Policing. It put forth a series
of recommendations aimed at rebuilding trust between the law
enforcement officers and the communities they protect. Its
recommendations included use of force data collection, de-escalation
training, transparency, and officer safety measures. I am glad that
many of the task force recommendations were included in this bill.
It is time we address the plague of shootings by and against police
officers in our country. We must come together to ensure that we do see
each other clearly and restore public confidence in our system of
justice. The first step is to shine a light on the problem and collect
accurate data. I thank Senator Boxer again for her leadership, and I
urge my colleagues to support the PRIDE Act and work towards its speedy
passage.
______
By Mr. DURBIN (for himself and Mr. Whitehouse):
S. 1481. A bill to direct the Administrator of the Federal Emergency
Management Agency to enter into an agreement with the National Academy
of Sciences to conduct a study on urban flooding, and for other
purposes; to the Committee on Banking, Housing, and Urban Affairs.
Mr. DURBIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1481
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 ``Urban Flooding Awareness Act
of 2015''.
SEC. 2. URBAN FLOODING DEFINED.
(a) In General.--In this Act, the term ``urban flooding''
means the inundation of property in a built environment,
particularly in more densely populated areas, caused by rain
falling on increased amounts of impervious surface and
overwhelming the capacity of drainage systems, such as storm
sewers.
(b) Inclusions.--In this Act, the term ``urban flooding''
includes--
(1) situations in which stormwater enters buildings through
windows, doors, or other openings;
(2) water backup through sewer pipes, showers, toilets,
sinks, and floor drains;
(3) seepage through walls and floors;
(4) the accumulation of water on property or public rights-
of-way; and
(5) the overflow from water bodies, such as rivers and
lakes.
(c) Exclusion.--In this Act, the term ``urban flooding''
does not include flooding in undeveloped or agricultural
areas.
SEC. 3. URBAN FLOODING STUDY.
(a) Agreement With National Academy of Sciences.--The
Administrator of the Federal Emergency Management Agency
shall enter into an agreement with the National Academy of
Sciences under which the National Academy of Sciences will
conduct a study on urban flooding in accordance with the
requirements of this section. The primary focus of the study
shall be on urban areas outside of special flood hazard
areas, as defined by the Federal Emergency Management Agency.
(b) Contents.--
(1) General review and evaluation.--In conducting the
study, the National Academy of Sciences shall review and
evaluate the latest available research, laws, regulations,
policies, best practices, procedures, and institutional
knowledge regarding urban flooding.
(2) Specific issue areas.--The study shall include, at a
minimum, an examination of the following:
(A) The prevalence and costs associated with urban flooding
events across the United States, with a focus on the largest
metropolitan areas and any clear trends in frequency and
severity over the past 2 decades.
(B) The adequacy of existing federally provided flood risk
information and the most cost effective methods and products
to identify, map, or otherwise characterize the risk of
property damage from urban flooding on a property-by-property
basis, whether or not a property is in or adjacent to a 1-
percent (100-year) flood plain, and the potential for
training and certifying local experts in flood risk
characterization as a service to property purchasers and
owners and their communities.
(C) The causes of urban flooding and its apparent increase
over the past 20 years, including the impacts of--
(i) global climate change;
(ii) increasing urbanization and the associated increase in
impervious surfaces; and
(iii) undersized, deteriorating, and otherwise ineffective
stormwater infrastructure.
(D) The most cost-effective strategies, practices,
technologies, policies, standards, or rules used to reduce
the impacts of urban flooding, with a focus on decentralized,
easy-to-install, and low-cost approaches, such as
nonstructural and natural infrastructure on public and
private property. The examination under this subparagraph
shall include an assessment of opportunities for implementing
innovative strategies and practices on government-controlled
land, such as Federal, State, and local roads, parking lots,
alleys, sidewalks, buildings, recreational areas, and open
space.
(E) The role of the Federal Government and State
governments, as conveners, funders, and advocates, in
spurring market innovations based on public-private-nonprofit
partnerships. Such innovations may include smart home
technologies for improved flood warning systems connected to
high-resolution weather forecast data and Internet- and
cellular-based communications systems.
(F) The most sustainable and effective methods for funding
flood risk and flood damage reduction at all levels of
government, including--
(i) the potential for establishing a State revolving fund
program for flood prevention projects similar to the
revolving fund programs under the Federal Water Pollution
Control Act and the Safe Drinking Water Act;
(ii) stormwater fee programs using impervious surface as
the basis for fee rates and
[[Page S3459]]
providing credits for the installation of flood prevention or
other stormwater management features;
(iii) grant programs; and
(iv) public-private partnerships.
(G) Information and education strategies and practices,
including nontraditional approaches such as the use of
community colleges and social media, for community leaders,
government staff, and property owners on--
(i) flood risks;
(ii) flood risk reduction strategies and practices; and
(iii) the availability and effectiveness of different types
of flood insurance policies.
(H) The relevance of the National Flood Insurance Program
and Community Rating System to urban flooding areas outside
traditional flood plains, and strategies for improving
compliance, broadening coverage, and increasing participation
under the programs.
(I) Strategies for protecting communities in the lower
elevations of a watershed or drainage area from the flooding
impacts of development in upstream communities, including a
review of--
(i) potential standards for watershed-wide flood protection
planning; and
(ii) cost-effective and equitable legal options for a
downstream community when upstream communities act in a way
that increases flooding downstream.
(J) Cost-effective strategies for reducing infiltration/
inflow into combined and separate sewer systems.
(K) Opportunities to increase coordination between
stormwater management programming under the Federal Water
Pollution Control Act (33 U.S.C. 1251 et seq.) and flood risk
management and mitigation programming under various laws,
including the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.) and the
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.).
(c) Consultation.--
(1) In general.--The Administrator of the Federal Emergency
Management Agency shall carry out this section in
consultation with the Secretary of the Army (acting through
the Chief of Engineers), the Secretary of Housing and Urban
Development, the Administrator of the Environmental
Protection Agency, the Director of the United States
Geological Survey, the Chief of the Natural Resources
Conservation Service, the Small Business Administration,
State, regional, and local stormwater management agencies,
State insurance commissioners, and such other interested
parties as the Administrator of the Federal Emergency
Management Agency considers appropriate.
(2) Cooperation.--The head of each Federal agency referred
to in paragraph (1) shall cooperate with the Administrator of
the Federal Emergency Management Agency in carrying out this
section as requested by the Administrator.
(d) Report to Congress.--Not later than December 31, 2016,
the Administrator of the Federal Emergency Management Agency
shall submit to the Committee on Financial Services and the
Committee on Appropriations of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs and
the Committee on Appropriations of the Senate a report
containing the findings of the National Academy of Sciences
based on the results of the study, including recommendations
for implementation of strategies, practices, and technologies
relating to urban flooding by Congress and the executive
branch.
______
By Mr. GRASSLEY (for himself, Mr. Leahy, and Mr. Lee):
S. 1482. A bill to improve and reauthorize provisions relating to the
application of the antitrust laws to the award of need-based
educational aid; to the Committee on the Judiciary.
Mr. GRASSLEY. Mr. President, I rise to introduce the Need-Based
Educational Aid Act of 2015, a bill that extends the Section 568
antitrust exemption for higher education institutions. I am pleased
that Senator Leahy and Senator Lee are cosponsoring this bill.
The Section 568 exemption enables colleges and universities to
collaborate on need-blind financial aid policies. It allows these
institutions to collaborate on a common formula for calculating a
family's ability to pay for college, by permitting certain specific
activities. The exemption was enacted in 1994, and since then has been
reauthorized by Congress on three occasions. In addition, a 2006 GAO
report found that the activities permitted by Section 568 did not
result in harm to competition.
Our bill would provide a 7-year extension for this exemption, and
also remove one of the four previously permitted activities under the
exemption that no school has ever used. By allowing financial aid
professionals to work together in these ways, Section 568 provides
increased access to higher education to low-income students, while
preventing needless litigation over the development of principles for
determining financial need.
I am proud to introduce this important, bipartisan bill, which will
ensure these benefits remain available for students and will encourage
access to higher education for years to come.
I thank my colleagues, Senators Leahy and Lee, for their support of
this effort.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1482
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 ``Need-Based Educational Aid
Act of 2015''.
SEC. 2. EXTENSION RELATING TO THE APPLICATION OF THE
ANTRITRUST LAWS TO THE AWARD OF NEED-BASED
EDUCATIONAL AID.
Section 568 of the Improving America's Schools Act of 1994
(15 U.S.C. 1 note) is amended--
(1) in subsection (a)--
(A) in paragraph (2), by inserting ``or'' after the
semicolon;
(B) in paragraph (3), by striking ``; or'' and inserting a
period at the end; and
(C) by striking paragraph (4); and
(2) in subsection (d), by striking ``2015'' and inserting
``2022''.
Mr. LEAHY. Mr. President, today I am joining with Senators Grassley
and Lee in introducing legislation to extend for an additional 7 years
the antitrust exemption permitting colleges and universities to
collaborate on issues of need-based financial aid. This exemption,
which was first enacted by Congress in 1994, allows colleges and
universities that admit students on a need-blind basis to collaborate
on the formula used to determine how much families can pay for college.
The Need-Based Educational Aid Act of 2015 is the fourth
reauthorization of this exemption, which is set to expire this year.
Congress must always carefully consider the benefits and drawbacks of
creating exemptions to the antitrust laws. These laws serve as an
important bulwark to protect consumers from anticompetitive conduct.
The Government Accountability Office has studied the effect of this
particular exemption in the past and concluded that allowing
universities to talk among themselves about financial aid policies and
procedures has not caused any harm.
Antitrust exemptions should not be a blank check, however, which is
why this exemption is not permanent. Our legislation will sunset the
exemption once again in 2022 and we have removed one of the permitted
activities that no school has ever used. A time-limited exemption
ensures that Congress will continue to conduct oversight in order to
assess the impact on consumers. I have long been skeptical of permanent
antitrust exemptions and the effect they have on the marketplace. For
example, I have worked for years with a number of Senators from both
parties to repeal the McCarran-Ferguson Act, a permanent exemption for
the insurance industry in place since 1945.
Allowing covered universities to focus their resources on ensuring
the most qualified students can attend some of the best schools in the
nation, regardless of family income, is a bipartisan and bicameral
goal. I thank Congressmen Smith and Johnson for introducing this bill
in the House and urge the Senate to pass this narrow legislation.
______
By Mr. DURBIN (for himself, Mr. Brown, Mr. Reed, Ms. Warren, Mr.
Sanders, and Ms. Baldwin):
S. 1486. A bill to amend the Internal Revenue Code of 1986 to provide
a tax credit to Patriot employers, and for other purposes; to the
Committee on Finance.
Mr. DURBIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1486
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 Employer Tax Credit
Act''.
SEC. 2. PATRIOT EMPLOYER TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:
``SEC. 45S. PATRIOT EMPLOYER TAX CREDIT.
``(a) Determination of Amount.--
[[Page S3460]]
``(1) In general.--For purposes of section 38, the Patriot
employer credit determined under this section with respect to
any taxpayer who is a Patriot employer for any taxable year
shall be equal to 10 percent of the qualified wages paid or
incurred by the Patriot employer.
``(2) Limitation.--The amount of qualified wages which may
be taken into account under paragraph (1) with respect to any
employee for any taxable year shall not exceed $15,000.
``(b) Patriot Employer.--
``(1) In general.--For purposes of subsection (a), the term
`Patriot employer' means, with respect to any taxable year,
any taxpayer--
``(A) which--
``(i) maintains its headquarters in the United States if
the taxpayer (or any predecessor) has ever been headquartered
in the United States, and
``(ii) is not (and no predecessor of which is) an
expatriated entity (as defined in section 7874(a)(2)) for the
taxable year or any preceding taxable year ending after March
4, 2003,
``(B) with respect to which no assessable payment has been
imposed under section 4980H with respect to any month
occurring during the taxable year, and
``(C) in the case of--
``(i) a taxpayer which employs an average of more than 50
employees on business days during the taxable year, which--
``(I) provides compensation for at least 90 percent of its
employees for services provided by such employees during the
taxable year at an hourly rate (or equivalent thereof) not
less than an amount equal to 156 percent of the Federal
poverty level for a family of three for the calendar year in
which the taxable year begins divided by 2,080,
``(II) meets the retirement plan requirements of subsection
(c) with respect to at least 90 percent of its employees
providing services during the taxable year who are not highly
compensated employees, and
``(III) meets the additional requirements of subparagraphs
(A) and (B) of paragraph (2), or
``(ii) any other taxpayer, which meets the requirements of
either subclause (I) or (II) of clause (i) for the taxable
year.
``(2) Additional requirements for large employers.--
``(A) United states employment.--The requirements of this
subparagraph are met for any taxable year if--
``(i) in any case in which the taxpayer increases the
number of employees performing substantially all of their
services for the taxable year outside the United States, the
taxpayer either--
``(I) increases the number of employees performing
substantially all of their services inside the United States
by an amount not less than the increase in such number for
employees outside the United States, or
``(II) has a percentage increase in such employees inside
the United States which is not less than the percentage
increase in such employees outside the United States,
``(ii) in any case in which the taxpayer decreases the
number of employees performing substantially all of their
services for the taxable year inside the United States, the
taxpayer either--
``(I) decreases the number of employees performing
substantially all of their services outside the United States
by an amount not less than the decrease in such number for
employees inside the United States, or
``(II) has a percentage decrease in employees outside the
United States which is not less than the percentage decrease
in such employees inside the United States, and
``(iii) there is not a decrease in the number of employees
performing substantially all of their services for the
taxable year inside the United States by reason of the
taxpayer contracting out such services to persons who are not
employees of the taxpayer.
``(B) Treatment of individuals in the uniformed services
and the disabled.--The requirements of this subparagraph are
met for any taxable year if--
``(i) the taxpayer provides differential wage payments (as
defined in section 3401(h)(2)) to each employee described in
section 3401(h)(2)(A) for any period during the taxable year
in an amount not less than the difference between the wages
which would have been received from the employer during such
period and the amount of pay and allowances which the
employee receives for service in the uniformed services
during such period, and
``(ii) the taxpayer has in place at all times during the
taxable year a written policy for the recruitment of
employees who have served in the uniformed services or who
are disabled.
``(3) Special rules for applying the minimum wage and
retirement plan requirements.--
``(A) Minimum wage.--In determining whether the minimum
wage requirements of paragraph (1)(C)(i)(I) are met with
respect to 90 percent of a taxpayer's employees for any
taxable year--
``(i) a taxpayer may elect to exclude from such
determination apprentices or learners that an employer may
exclude under the regulations under section 14(a) of the Fair
Labor Standards Act of 1938, and
``(ii) if a taxpayer meets the requirements of paragraph
(2)(B)(i) with respect to providing differential wage
payments to any employee for any period (without regard to
whether such requirements apply to the taxpayer), the hourly
rate (or equivalent thereof) for such payments shall be
determined on the basis of the wages which would have been
paid by the employer during such period if the employee had
not been providing service in the uniformed services.
``(B) Retirement plan.--In determining whether the
retirement plan requirements of paragraph (1)(C)(i)(II) are
met with respect to 90 percent of a taxpayer's employees for
any taxable year, a taxpayer may elect to exclude from such
determination--
``(i) employees not meeting the age or service requirements
under section 410(a)(1) (or such lower age or service
requirements as the employer provides), and
``(ii) employees described in section 410(b)(3).
``(c) Retirement Plan Requirements.--
``(1) In general.--The requirements of this subsection are
met for any taxable year with respect to an employee of the
taxpayer who is not a highly compensated employee if the
employee is eligible to participate in 1 or more applicable
eligible retirement plans maintained by the employer for a
plan year ending with or within the taxable year.
``(2) Applicable eligible retirement plan.--For purposes of
this subsection, the term `applicable eligible retirement
plan' means an eligible retirement plan which, with respect
to the plan year described in paragraph (1), is either--
``(A) a defined contribution plan which--
``(i) requires the employer to make nonelective
contributions of at least 5 percent of the compensation of
the employee, or
``(ii) both--
``(I) includes an eligible automatic contribution
arrangement (as defined in section 414(w)(3)) under which the
uniform percentage described in section 414(w)(3)(B) is at
least 5 percent, and
``(II) requires the employer to make matching contributions
of 100 percent of the elective deferrals (as defined in
section 414(u)(2)(C)) of the employee to the extent such
deferrals do not exceed the percentage specified by the plan
(not less than 5 percent) of the employee's compensation, or
``(B) a defined benefit plan--
``(i) with respect to which the accrued benefit of the
employee derived from employer contributions, when expressed
as an annual retirement benefit, is not less than the product
of--
``(I) the lesser of 2 percent multiplied by the employee's
years of service (determined under the rules of paragraphs
(4), (5), and (6) of section 411(a)) with the employer or 20
percent, multiplied by
``(II) the employee's final average pay, or
``(ii) which is an applicable defined benefit plan (as
defined in section 411(a)(13)(B))--
``(I) which meets the interest credit requirements of
section 411(b)(5)(B)(i) with respect to the plan year, and
``(II) under which the employee receives a pay credit for
the plan year which is not less than 5 percent of
compensation.
``(3) Definitions and special rules.--For purposes of this
subsection--
``(A) Eligible retirement plan.--The term `eligible
retirement plan' has the meaning given such term by section
402(c)(8)(B), except that in the case of an account or
annuity described in clause (i) or (ii) thereof, such term
shall only include an account or annuity which is a
simplified employee pension (as defined in section 408(k)).
``(B) Final average pay.--For purposes of paragraph
(2)(B)(i)(II), final average pay shall be determined using
the period of consecutive years (not exceeding 5) during
which the employee had the greatest compensation from the
taxpayer.
``(C) Alternative plan designs.--The Secretary may
prescribe regulations for a taxpayer to meet the requirements
of this subsection through a combination of defined
contribution plans or defined benefit plans described in
paragraph (1) or through a combination of both such types of
plans.
``(D) Plans must meet requirements without taking into
account social security and similar contributions and
benefits.--A rule similar to the rule of section 416(e) shall
apply.
``(d) Qualified Wages and Compensation.--For purposes of
this section--
``(1) In general.--The term `qualified wages' means wages
(as defined in section 51(c), determined without regard to
paragraph (4) thereof) paid or incurred by the Patriot
employer during the taxable year to employees--
``(A) who perform substantially all of their services for
such Patriot employer inside the United States, and
``(B) with respect to whom--
``(i) in the case of a Patriot employer which employs an
average of more than 50 employees on business days during the
taxable year, the requirements of subclauses (I) and (II) of
subsection (b)(1)(C)(i) are met, and
``(ii) in the case of any other Patriot employer, the
requirements of either subclause (I) or (II) of subsection
(b)(1)(C)(i) are met.
``(2) Special rules for agricultural labor and railway
labor.--Rules similar to the rules of section 51(h) shall
apply.
``(3) Compensation.--For purposes of subsections
(b)(1)(C)(i)(I) and (c), the term `compensation' has the same
meaning as qualified wages, except that section 51(c)(2)
shall be disregarded in determining the amount of such wages.
``(e) Aggregation Rules.--For purposes of this section--
``(1) In general.--All persons treated as a single employer
under subsection (a) or (b) of
[[Page S3461]]
section 52 shall be treated as a single taxpayer.
``(2) Special rules for certain requirements.--For purposes
of applying paragraphs (1)(A) and (2)(A) of subsection (b)--
``(A) the determination under subsections (a) and (b) of
section 52 for purposes of paragraph (1) shall be made
without regard to section 1563(b)(2)(C) (relating to
exclusion of foreign corporations), and
``(B) if any person treated as a single taxpayer under this
subsection (after application of subparagraph (A)), or any
predecessor of such person, was an expatriated entity (as
defined in section 7874(a)(2)) for any taxable year ending
after March 4, 2003, then all persons treated as a single
taxpayer with such person shall be treated as expatriated
entities.
``(f) Election To Have Credit Not Apply.--
``(1) In general.--A taxpayer may elect to have this
section not apply for any taxable year.
``(2) Time for making election.--An election under
paragraph (1) for any taxable year may be made (or revoked)
at any time before the expiration of the 3-year period
beginning on the last date prescribed by law for filing the
return for such taxable year (determined without regard to
extensions).
``(3) Manner of making election.--An election under
paragraph (1) (or revocation thereof) shall be made in such
manner as the Secretary may by regulations prescribe.''.
(b) Allowance as General Business Credit.--Section 38(b) of
the Internal Revenue Code of 1986 is amended by striking
``plus'' at the end of paragraph (35), by striking the period
at the end of paragraph (36) and inserting ``, plus'', and by
adding at the end the following:
``(37) in the case of a Patriot employer (as defined in
section 45S(b)) for any taxable year, the Patriot employer
credit determined under section 45S(a).''.
(c) Denial of Double Benefit.--Subsection (a) of section
280C of the Internal Revenue Code of 1986 is amended by
inserting ``45S(a),'' after ``45P(a)''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. 3. DEFER DEDUCTION OF INTEREST EXPENSE RELATED TO
DEFERRED INCOME.
(a) In General.--Section 163 of the Internal Revenue Code
of 1986 (relating to deductions for interest expense) is
amended by redesignating subsection (n) as subsection (o) and
by inserting after subsection (m) the following new
subsection:
``(n) Deferral of Deduction for Interest Expense Related to
Deferred Income.--
``(1) General rule.--The amount of foreign-related interest
expense of any taxpayer allowed as a deduction under this
chapter for any taxable year shall not exceed an amount equal
to the applicable percentage of the sum of--
``(A) the taxpayer's foreign-related interest expense for
the taxable year, plus
``(B) the taxpayer's deferred foreign-related interest
expense.
For purposes of the paragraph, the applicable percentage is
the percentage equal to the current inclusion ratio.
``(2) Treatment of deferred deductions.--If, for any
taxable year, the amount of the limitation determined under
paragraph (1) exceeds the taxpayer's foreign-related interest
expense for the taxable year, there shall be allowed as a
deduction for the taxable year an amount equal to the lesser
of--
``(A) such excess, or
``(B) the taxpayer's deferred foreign-related interest
expense.
``(3) Definitions and special rule.--For purposes of this
subsection--
``(A) Foreign-related interest expense.--The term `foreign-
related interest expense' means, with respect to any taxpayer
for any taxable year, the amount which bears the same ratio
to the amount of interest expense for such taxable year
allocated and apportioned under sections 861, 864(e), and
864(f) to income from sources outside the United States as--
``(i) the value of all stock held by the taxpayer in all
section 902 corporations with respect to which the taxpayer
meets the ownership requirements of subsection (a) or (b) of
section 902, bears to
``(ii) the value of all assets of the taxpayer which
generate gross income from sources outside the United States.
``(B) Deferred foreign-related interest expense.--The term
`deferred foreign-related interest expense' means the excess,
if any, of the aggregate foreign-related interest expense for
all prior taxable years beginning after December 31, 2015,
over the aggregate amount allowed as a deduction under
paragraphs (1) and (2) for all such prior taxable years.
``(C) Value of assets.--Except as otherwise provided by the
Secretary, for purposes of subparagraph (A)(ii), the value of
any asset shall be the amount with respect to such asset
determined for purposes of allocating and apportioning
interest expense under sections 861, 864(e), and 864(f).
``(D) Current inclusion ratio.--The term `current inclusion
ratio' means, with respect to any domestic corporation which
meets the ownership requirements of subsection (a) or (b) of
section 902 with respect to one or more section 902
corporations for any taxable year, the ratio (expressed as a
percentage) of--
``(i) the sum of all dividends received by the domestic
corporation from all such section 902 corporations during the
taxable year plus amounts includible in gross income under
section 951(a) from all such section 902 corporations, in
each case computed without regard to section 78, divided by
``(ii) the aggregate amount of post-1986 undistributed
earnings.
``(E) Aggregate amount of post-1986 undistributed
earnings.--The term `aggregate amount of post-1986
undistributed earnings' means, with respect to any domestic
corporation which meets the ownership requirements of
subsection (a) or (b) of section 902 with respect to one or
more section 902 corporations, the domestic corporation's pro
rata share of the post-1986 undistributed earnings (as
defined in section 902(c)(1)) of all such section 902
corporations.
``(F) Foreign currency conversion.--For purposes of
determining the current inclusion ratio, and except as
otherwise provided by the Secretary, the aggregate amount of
post-1986 undistributed earnings for the taxable year shall
be determined by translating each section 902 corporation's
post-1986 undistributed earnings into dollars using the
average exchange rate for such year.
``(G) Section 902 corporation.--The term `section 902
corporation' has the meaning given to such term by section
909(d)(5).
``(4) Treatment of affiliated groups.--The current
inclusion ratio of each member of an affiliated group (as
defined in section 864(e)(5)(A)) shall be determined as if
all members of such group were a single corporation.
``(5) Application to separate categories of income.--This
subsection shall be applied separately with respect to the
categories of income specified in section 904(d)(1).
``(6) Regulations.--The Secretary may prescribe such
regulations or other guidance as is necessary or appropriate
to carry out the purposes of this subsection, including
regulations or other guidance providing--
``(A) for the proper application of this subsection with
respect to changes in ownership of a section 902 corporation,
``(B) that certain corporations that otherwise would not be
members of the affiliated group will be treated as members of
the affiliated group for purposes of this subsection,
``(C) for the proper application of this subsection with
respect to the taxpayer's share of a deficit in earnings and
profits of a section 902 corporation,
``(D) for appropriate adjustments to the determination of
the value of stock in any section 902 corporation for
purposes of this subsection or to the foreign-related
interest expense to account for income that is subject to tax
under section 882(a)(1), and
``(E) for the proper application of this subsection with
respect to interest expense that is directly allocable to
income with respect to certain assets.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
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