[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Pages S7648-S7649]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1807. Mr. GRAHAM submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       On page __, line ___, strike ``(h) Regulations.--'' and 
     insert:
       ``(h) Special Rules to Prevent the Double Taxation of Base 
     Erosion Payments.--
       ``(1) Coordination with tax on certain insurance 
     policies.--
       ``(A) In general.--If applicable taxes are imposed on 1 or 
     more base erosion payments made by the taxpayer for any 
     taxable year, the base erosion minimum tax amount for such 
     taxable year shall be reduced by the applicable percentage of 
     the aggregate amount of such taxes imposed on such payments.
       ``(B) Applicable percentage.--For purposes of this 
     paragraph, the term `applicable percentage' means, with 
     respect to any taxable year, the percentage determined by 
     dividing--
       ``(i) the base erosion payments for such taxable year on 
     which applicable taxes were imposed, by
       ``(ii) the aggregate amount of base erosion payments of the 
     taxpayer for the taxable year.

[[Page S7649]]

       ``(C) Applicable taxes.--For purposes of this paragraph, 
     the term `applicable tax' means any tax imposed by--
       ``(i) section 4371(2), or
       ``(ii) section 4173(3), but only to the extent applicable 
     to reinsurance covering contracts taxable under section 
     4371(2).
       ``(2) Reduction for amounts paid to the taxpayer.--The 
     amount of any base erosion payment described in subsection 
     (d)(1) paid or accrued during the taxable year by the 
     taxpayer to a foreign person which is a related party to the 
     taxpayer shall be reduced by any amount which was--
       ``(A) paid or accrued during such taxable year by such 
     foreign person to the taxpayer, and
       ``(B) related to such base erosion payment.
       ``(3) Payments subject to united states tax.--No amount 
     paid or accrued during the taxable year by the taxpayer to a 
     foreign person which is a related party to the taxpayer shall 
     be treated as a base erosion payment under subsection (d) to 
     the extent--
       ``(A) such amount is taken into account by such foreign 
     person in determining the tax of such foreign person under 
     this subtitle, and
       ``(B) such foreign person has certified it is exempt from 
     withholding tax under section 1441 or 1442 or such person has 
     elected to be taxed under this subtitle as a United States 
     person.
       ``(i) Regulations.--
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