[Congressional Record Volume 167, Number 87 (Wednesday, May 19, 2021)]
[Senate]
[Pages S3124-S3128]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1591. Mrs. GILLIBRAND (for herself and Mr. Sanders) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Schumer to the bill S. 1260, to establish a new Directorate for
Technology and Innovation in the National Science Foundation, to
establish a regional technology hub program, to require a strategy and
report on economic security, science, research, innovation,
manufacturing, and job creation, to establish a critical supply chain
resiliency program, and for other purposes; which was ordered to lie on
the table; as follows:
At the end of Division F, insert the following:
TITLE IV--END OUTSOURCING ACT
SEC. 6401. SHORT TITLE.
This title may be cited as the ``End Outsourcing Act''.
SEC. 6402. OUTSOURCING STATEMENT IN WORKER ADJUSTMENT AND
RETRAINING NOTICE.
(a) Outsourcing Statement.--Section 3 of the Worker
Adjustment and Retraining Notification Act (29 U.S.C. 2102)
is amended by adding at the end the following:
``(e) Outsourcing Statement.--
``(1) In general.--For purposes of subsection (a), the
employer shall include an outsourcing statement in the notice
described in that subsection. The outsourcing statement shall
specify whether part or all of the positions held by affected
employees covered by subsection (a) will be moved to a
country outside the United States, regardless of whether the
positions are moved within the business enterprise involved
or to another business enterprise. The employer shall make
the determination of whether the positions are being so moved
in accordance with regulations issued by the Secretary. The
employer shall serve the notice as required under subsection
(a) and submit the notice to the Secretary of Labor.
``(2) List.--Not less often than annually, the Secretary
shall publish and make available on the website of the
Department of Labor, a list including each employer who--
``(A) has included an outsourcing statement in a notice
under paragraph (1); or
``(B) has incurred liability under section 5, in part or in
whole, because the employer ordered a plant closing or mass
layoff without having served a notice that is required, under
this section, to include an outsourcing statement.''.
(b) Implementation Report.--The Worker Adjustment and
Retraining Notification Act is amended by inserting after
section 10 (29 U.S.C. 2109) the following:
``SEC. 10A. IMPLEMENTATION STUDY.
``(a) Study.--The Comptroller General of the United States
shall conduct a study of the implementation of section 3(e)
of the Worker Adjustment and Retraining Notification Act (29
U.S.C. 2102(e)) by the Department of Labor.
``(b) Report.--Not later than 3 years after the date of
enactment of this section, the Comptroller General shall
submit to the appropriate committees of Congress a report
containing the results of the study.''.
[[Page S3125]]
SEC. 6403. DENIAL OF DEDUCTION FOR OUTSOURCING EXPENSES.
(a) In General.--Part IX of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new section:
``SEC. 280I. OUTSOURCING EXPENSES.
``(a) In General.--No deduction otherwise allowable under
this chapter shall be allowed for any specified outsourcing
expense.
``(b) Specified Outsourcing Expense.--For purposes of this
section--
``(1) In general.--The term `specified outsourcing expense'
means--
``(A) any eligible expense paid or incurred by the taxpayer
in connection with the elimination of any business unit of
the taxpayer (or of any member of any expanded affiliated
group in which the taxpayer is also a member) located within
the United States, and
``(B) any eligible expense paid or incurred by the taxpayer
in connection with the establishment of any business unit of
the taxpayer (or of any member of any expanded affiliated
group in which the taxpayer is also a member) located outside
the United States,
if such establishment constitutes the relocation of the
business unit so eliminated. For purposes of the preceding
sentence, a relocation shall not be treated as failing to
occur merely because such elimination occurs in a different
taxable year than such establishment.
``(2) Eligible expenses.--The term `eligible expenses'
means--
``(A) any amount for which a deduction is allowed to the
taxpayer under section 162, and
``(B) permit and license fees, lease brokerage fees,
equipment installation costs, and, to the extent provided by
the Secretary, other similar expenses.
Such term does not include any compensation which is paid or
incurred in connection with severance from employment and, to
the extent provided by the Secretary, any similar amount.
``(3) Business unit.--The term `business unit' means--
``(A) any trade or business, and
``(B) any line of business, or functional unit, which is
part of any trade or business.
``(4) Expanded affiliated group.--The term `expanded
affiliated group' means an affiliated group as defined in
section 1504(a), determined without regard to section
1504(b)(3) and by substituting `more than 50 percent' for `at
least 80 percent' each place it appears in section 1504(a). A
partnership or any other entity (other than a corporation)
shall be treated as a member of an expanded affiliated group
if such entity is controlled (within the meaning of section
954(d)(3)) by members of such group (including any entity
treated as a member of such group by reason of this
paragraph).
``(5) Operating expenses not taken into account.--Any
amount paid or incurred in connection with the ongoing
operation of a business unit shall not be treated as an
amount paid or incurred in connection with the establishment
or elimination of such business unit.
``(c) Special Rules.--
``(1) Application to deductions for depreciation and
amortization.--In the case of any portion of a specified
outsourcing expense which is not deductible in the taxable
year in which paid or incurred, such portion shall neither be
chargeable to capital account nor amortizable.
``(2) Possessions treated as part of the united states.--
For purposes of this section, the term `United States' shall
be treated as including each possession of the United States
(including the Commonwealth of Puerto Rico and the
Commonwealth of the Northern Mariana Islands).
``(d) Regulations.--The Secretary shall prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section,
including regulations which provide (or create a rebuttable
presumption) that certain establishments of business units
outside the United States will be treated as relocations
(based on timing or such other factors as the Secretary may
provide) of business units eliminated within the United
States.''.
(b) Limitation on Subpart F Income of Controlled Foreign
Corporations Determined Without Regard to Specified
Outsourcing Expenses.--Subsection (c) of section 952 of such
Code is amended by adding at the end the following new
paragraph:
``(4) Earnings and profits determined without regard to
specified outsourcing expenses.--For purposes of this
subsection, earnings and profits of any controlled foreign
corporation shall be determined without regard to any
specified outsourcing expense (as defined in section
280I(b)).''.
(c) Clerical Amendment.--The table of sections for part IX
of subchapter B of chapter 1 of such Code is amended by
adding at the end the following new item:
``Sec. 280I. Outsourcing expenses.''.
(d) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.
SEC. 6404. DENIAL OF CERTAIN DEDUCTIONS AND ACCOUNTING
METHODS FOR OUTSOURCING EMPLOYERS.
(a) In General.--Part IX of subchapter B of chapter 1 of
the Internal Revenue Code of 1986, as amended by section
6403, is amended by adding at the end the following new
section:
``SEC. 280J. LIMITATIONS FOR OUTSOURCING EMPLOYERS.
``(a) In General.--During the disallowance period, an
applicable taxpayer--
``(1) may not use the method provided in section 472(b) in
inventorying goods,
``(2) may not use the lower of cost or market method of
determining inventories for purposes of determining income,
and
``(3) shall not be allowed any deduction under section 163
for interest paid or accrued on indebtedness.
``(b) Applicable Taxpayer.--For purposes of subsection (a),
the term `applicable taxpayer' means a taxpayer which--
``(1) during the taxable year, has served written notice
under subsection (a) of section 3 of the Worker Adjustment
and Retraining Notification Act which includes an outsourcing
statement described in subsection (e) of such section, and
``(2) the cumulative employment loss (excluding any part-
time employees) for positions at facilities owned by such
taxpayer which will be moved to a country outside of the
United States, as determined pursuant to any outsourcing
statements served by such taxpayer during such taxable year,
exceeds 50 employees.
``(c) Disallowance Period.--For purposes of subsection (a),
the disallowance period is the period of 3 taxable years
after the taxable year in which the statements described in
subsection (b)(2) are required to be served.
``(d) Expanded Affiliated Group Treated as Single
Taxpayer.--For purposes of this section, the members of an
expanded affiliated group (as defined in section 280I(b)(4))
shall be treated as a single taxpayer.
``(e) Regulations.--The Secretary shall prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section.''.
(b) Clerical Amendment.--The table of sections for part IX
of subchapter B of chapter 1 of the Internal Revenue Code of
1986, as amended by section 6403, is amended by adding at the
end the following new item:
``Sec. 280J. Limitations for outsourcing employers.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 6405. AUTHORITY FOR FEDERAL AGENCIES TO TAKE THE
OUTSOURCING OF JOBS FROM THE UNITED STATES INTO
ACCOUNT FOR GRANTS, LOANS, AND LOAN GUARANTEES.
(a) Disclosure of Outsourcing of Jobs.--
(1) In general.--The head of any Federal agency, or their
delegate, shall require any entity that submits a request for
an applicable agency action to disclose in the request if
such entity, or any subsidiary of such entity, owns a
facility for which there is an outsourcing event during the
3-year period ending on the date of the submission of the
request.
(2) Outsourcing event.--For purposes of paragraph (1), the
term ``outsourcing event'' means a plant closing or mass
layoff (as described in section 2(a) of the Worker Adjustment
and Retraining Notification Act) in which the employment loss
(excluding any part-time employees) for positions which will
be moved to a country outside of the United States, as
determined pursuant to the outsourcing statement (as
described in paragraph (1) of such section 3(e) of such Act),
exceeds 50 employees.
(b) Consideration Authority.--
(1) In general.--In considering a request by an entity for
an applicable agency action, the head of any Federal agency,
as well as any officers, employees, and contractors of such
Agency, shall take into account any disclosure made pursuant
to subsection (a) for purposes of such request.
(2) Denial.--The head of any Federal agency shall deny any
request for an applicable agency action by an entity that
makes a disclosure pursuant to subsection (a).
(c) Sense of Congress.--It is the sense of Congress that
Federal agencies should, in considering requests by entities
for any applicable agency action, exclude entities making a
disclosure of an outsourcing event pursuant to subsection (a)
on the grounds that the actions described in the disclosures
are against the public interests of the United States.
(d) Annual Report.--The head of each Federal agency shall
submit to Congress each year a report on the following:
(1) The number of entities making a disclosure of an
outsourcing event pursuant to subsection (a) in regards to a
request for applicable agency action during the preceding
year.
(2) The number of requests for applicable agency action
which were granted by the agency during the preceding year in
which such disclosures were taken into account.
(e) Applicable Agency Action.--For purposes of this
section, the term ``applicable agency action'' means any
grant, loan, or loan guarantee awarded or issued by a Federal
agency.
SEC. 6406. RECAPTURE OF CREDITS FOR OUTSOURCING EMPLOYERS.
(a) In General.--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 subpart:
``Subpart H--Recapture of Credits for Outsourcing Employers
``Sec. 54. Recapture of credits for outsourcing employers.
``SEC. 54. RECAPTURE OF CREDITS FOR OUTSOURCING EMPLOYERS.
``(a) In General.--Pursuant to regulations prescribed by
the Secretary, in the case of a
[[Page S3126]]
taxpayer which owns a facility for which there is an
outsourcing event during the taxable year, the tax under this
chapter for such taxable year shall be increased by the
amount equal to the sum of--
``(1) any credits allowed under this chapter relating to
expenses for design, construction, operation, or maintenance
of such facility during the 5 taxable years preceding such
taxable year, and
``(2) any grants provided by the Secretary in lieu of
credits described in paragraph (1) during the 5 taxable years
preceding such taxable year.
``(b) Outsourcing Event.--For purposes of subsection (a),
the term `outsourcing event' means a plant closing or mass
layoff (as described in section 2(a) of the Worker Adjustment
and Retraining Notification Act) in which the employment loss
(excluding any part-time employees) for positions which will
be moved to a country outside of the United States, as
determined pursuant to the outsourcing statement (as
described in paragraph (1) of such section 3(e) of such Act)
served by the taxpayer during the taxable year, exceeds 50
employees.
``(c) Expanded Affiliated Group Treated as Single
Taxpayer.--For purposes of this section, the members of an
expanded affiliated group (as defined in section 280I(b)(4))
shall be treated as a single taxpayer.''.
(b) Clerical Amendment.--The table of subparts for part IV
of subchapter A of chapter 1 of such Code is amended by
adding at the end the following new item:
``subpart h--recapture of credits for outsourcing employers''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 6407. CREDIT FOR INSOURCING EXPENSES.
(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. 45U. CREDIT FOR INSOURCING EXPENSES.
``(a) In General.--For purposes of section 38, the
insourcing expenses credit for any taxable year is an amount
equal to 20 percent of the eligible insourcing expenses of
the taxpayer which are taken into account in such taxable
year under subsection (d).
``(b) Eligible Insourcing Expenses.--For purposes of this
section--
``(1) In general.--The term `eligible insourcing expenses'
means--
``(A) eligible expenses paid or incurred by the taxpayer in
connection with the elimination of any business unit of the
taxpayer (or of any member of any expanded affiliated group
in which the taxpayer is also a member) located outside the
United States, and
``(B) eligible expenses paid or incurred by the taxpayer in
connection with the establishment of any business unit of the
taxpayer (or of any member of any expanded affiliated group
in which the taxpayer is also a member) located within--
``(i) a HUBZone (as defined in section 3(p)(2) of the Small
Business Act (15 U.S.C. 632(p)(2))), or
``(ii) a low-income community (as described in section
45D(e)),
if such establishment constitutes the relocation of the
business unit so eliminated. For purposes of the preceding
sentence, a relocation shall not be treated as failing to
occur merely because such elimination occurs in a different
taxable year than such establishment.
``(2) Eligible expenses.--The term `eligible expenses'
means--
``(A) any amount for which a deduction is allowed to the
taxpayer under section 162, and
``(B) permit and license fees, lease brokerage fees,
equipment installation costs, and, to the extent provided by
the Secretary, other similar expenses.
Such term does not include any compensation which is paid or
incurred in connection with severance from employment and, to
the extent provided by the Secretary, any similar amount.
``(3) Business unit.--The term `business unit' means--
``(A) any trade or business, and
``(B) any line of business, or functional unit, which is
part of any trade or business.
``(4) Expanded affiliated group.--The term `expanded
affiliated group' means an affiliated group as defined in
section 1504(a), determined without regard to section
1504(b)(3) and by substituting `more than 50 percent' for `at
least 80 percent' each place it appears in section 1504(a). A
partnership or any other entity (other than a corporation)
shall be treated as a member of an expanded affiliated group
if such entity is controlled (within the meaning of section
954(d)(3)) by members of such group (including any entity
treated as a member of such group by reason of this
paragraph).
``(5) Expenses must be pursuant to insourcing plan.--
Amounts shall be taken into account under paragraph (1) only
to the extent that such amounts are paid or incurred pursuant
to a written plan to carry out the relocation described in
paragraph (1).
``(6) Operating expenses not taken into account.--Any
amount paid or incurred in connection with the on-going
operation of a business unit shall not be treated as an
amount paid or incurred in connection with the establishment
or elimination of such business unit.
``(c) Increased Domestic Employment Requirement.--No credit
shall be allowed under this section unless the number of
full-time equivalent employees of the taxpayer for the
taxable year for which the credit is claimed exceeds the
number of full-time equivalent employees of the taxpayer for
the last taxable year ending before the first taxable year in
which such eligible insourcing expenses were paid or
incurred. For purposes of this subsection, full-time
equivalent employees has the meaning given such term under
section 45R(d) (and the applicable rules of section 45R(e)).
All employers treated as a single employer under subsection
(b), (c), (m), or (o) of section 414 shall be treated as a
single employer for purposes of this subsection.
``(d) Credit Allowed Upon Completion of Insourcing Plan.--
``(1) In general.--Except as provided in paragraph (2),
eligible insourcing expenses shall be taken into account
under subsection (a) in the taxable year during which the
plan described in subsection (b)(5) has been completed and
all eligible insourcing expenses pursuant to such plan have
been paid or incurred.
``(2) Election to apply employment test and claim credit in
first full taxable year after completion of plan.--If the
taxpayer elects the application of this paragraph, eligible
insourcing expenses shall be taken into account under
subsection (a) in the first taxable year after the taxable
year described in paragraph (1).
``(e) Possessions Treated as Part of the United States.--
For purposes of this section, the term `United States' shall
be treated as including each possession of the United States
(including the Commonwealth of Puerto Rico and the
Commonwealth of the Northern Mariana Islands).
``(f) Regulations.--The Secretary shall prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section.''.
(b) Credit To Be Part of General Business Credit.--
Subsection (b) of section 38 of such Code is amended by
striking ``plus'' at the end of paragraph (32), by striking
the period at the end of paragraph (33) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(34) the insourcing expenses credit determined under
section 45U(a).''.
(c) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 of such Code is
amended by adding at the end the following new item:
``Sec. 45U. Credit for insourcing expenses.''.
(d) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.
(e) Application to United States Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary of the Treasury
shall make periodic payments to each possession of the United
States with a mirror code tax system in an amount equal to
the loss to that possession by reason of section 45U of the
Internal Revenue Code of 1986. Such amount shall be
determined by the Secretary of the Treasury based on
information provided by the government of the respective
possession.
(B) Other possessions.--The Secretary of the Treasury shall
make annual payments to each possession of the United States
which does not have a mirror code tax system in an amount
estimated by the Secretary of the Treasury as being equal to
the aggregate benefits that would have been provided to
residents of such possession by reason of section 45U of such
Code if a mirror code tax system had been in effect in such
possession. The preceding sentence shall not apply with
respect to any possession of the United States unless such
possession has a plan, which has been approved by the
Secretary of the Treasury, under which such possession will
promptly distribute such payment to the residents of such
possession.
(2) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United
States income taxes under section 45U of such Code to any
person--
(A) to whom a credit is allowed against taxes imposed by
the possession by reason of such section, or
(B) who is eligible for a payment under a plan described in
paragraph (1)(B).
(3) Definitions and special rules.--
(A) Possessions of the united states.--For purposes of this
section, the term ``possession of the United States''
includes the Commonwealth of Puerto Rico and the Commonwealth
of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this section,
the term ``mirror code tax system'' means, with respect to
any possession of the United States, the income tax system of
such possession if the income tax liability of the residents
of such possession under such system is determined by
reference to the income tax laws of the United States as if
such possession were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments
under this section shall be treated in the same manner as a
refund due from sections referred to in such section
1324(b)(2).
SEC. 6408. AUTHORITY FOR FEDERAL CONTRACTING OFFICERS TO TAKE
THE OUTSOURCING OF JOBS FROM THE UNITED STATES
INTO ACCOUNT IN AWARDING CONTRACTS.
(a) Department of Defense and Related Agency Contracts.--
[[Page S3127]]
(1) Consideration of outsourcing.--
(A) In general.--Chapter 222 of title 10, United States
Code, as added by section 1812(a) of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021 (Public Law 116-283), is amended by inserting after
section 3227 the following new section:
``Sec. 3228. Contracts: consideration of outsourcing of jobs
``(a) Disclosure of Outsourcing of Jobs.--
``(1) In general.--The head of an agency shall require a
contractor that submits a bid or proposal in response to a
solicitation issued by the agency to disclose in that bid or
proposal if the contractor, or a subsidiary of the
contractor, owns a facility for which there is an outsourcing
event during the three-year period ending on the date of the
submittal of the bid or proposal.
``(2) Outsourcing event.--For purposes of paragraph (1),
the term `outsourcing event' means a plant closing or mass
layoff (as described in section 2(a) of the Worker Adjustment
and Retraining Notification Act) in which the employment loss
(excluding any part-time employees) for positions which will
be moved to a country outside of the United States, as
determined pursuant to the outsourcing statement (as
described in paragraph (1) of such section 3(e) of such Act)
served by the taxpayer during the taxable year, exceeds 50
employees.
``(b) Consideration Authorized.--(1) Agency contracting
officers considering bids or proposals in response to a
solicitation issued by the agency shall take into account any
disclosure made pursuant to subsection (a) in such bids and
proposals.
``(2) The head of an agency shall deny a bid or proposal of
a contractor that makes a disclosure pursuant to subsection
(a).
``(c) Sense of Congress.--It is the sense of Congress that
agency contracting officers should, using section 3203(a) of
this title, exclude contractors making a disclosure pursuant
to subsection (a) in response to solicitations issued by the
agency from the bidding process in connection with such
solicitations on the grounds that the actions described in
the disclosures are against the public interests of the
United States.
``(d) Annual Report.--The head of each agency shall submit
to Congress each year a report on the following:
``(1) The number of solicitations made by the agency during
the preceding year for which disclosures were made pursuant
to subsection (a) in responsive bids or proposals.
``(2) The number of contracts awarded by the agency during
the preceding year in which such disclosures were taken into
account in the contract award.''.
(B) Clerical amendment.--The table of sections at the
beginning of chapter 222 of such title, as added by such
section 1812(a), is amended by inserting after the item
relating to section 3227 the following new item:
``3228. Contracts: consideration of outsourcing of jobs.''.
(2) Exclusion of firms from sources.--Section 3203(a) of
such title, as added by section 1812(a) of the William M.
(Mac) Thornberry National Defense Authorization Act for
Fiscal Year 2021 (Public Law 116-283), is amended--
(A) by redesignating subsection (c) as subsection (d);
(B) by inserting after subsection (b) the following new
subsection:
``(c) Exclusion of Sources That Outsource Jobs.--The head
of an agency may provide for the procurement of property and
services covered by this chapter using competitive procedures
but excluding a source making a disclosure pursuant to
section 3228(a) of this title in the bid or proposal in
response to the solicitation issued by the agency if the head
of the agency determines that the actions described by
disclosure are against the public interests of the United
States and the source is to be excluded on those grounds. Any
such determination shall take into account the sense of
Congress set forth in section 3228(c) of this title.''; and
(C) in subsection (d), as so redesignated, by striking
``paragraphs (1) and (2)'' and inserting ``subsections (a),
(b), and (c)''.
(b) Other Federal Contracts.--
(1) Consideration of outsourcing.--Chapter 35 of title 41,
United States Code, is amended by inserting after section
3303 the following new section:
``Sec. 3303a. Bidders outsourcing jobs: disclosure of
outsourcing; consideration of outsourcing in award;
exclusion from sources
``(a) Disclosure of Outsourcing of Jobs.--
``(1) In general.--The head of an executive agency shall
require a contractor that submits a bid or proposal in
response to a solicitation issued by the executive agency to
disclose in that bid or proposal if the contractor, or a
subsidiary of the contractor, owns a facility for which there
is an outsourcing event during the three-year period ending
on the date of the submittal of the bid or proposal.
``(2) Outsourcing event.--For purposes of paragraph (1),
the term `outsourcing event' means a plant closing or mass
layoff (as described in section 2(a) of the Worker Adjustment
and Retraining Notification Act) in which the employment loss
(excluding any part-time employees) for positions which will
be moved to a country outside of the United States, as
determined pursuant to the outsourcing statement (as
described in paragraph (1) of such section 3(e) of such Act)
served by the taxpayer during the taxable year, exceeds 50
employees.
``(b) Consideration Authorized.--(1) Contracting officers
of an executive agency considering bids or proposals in
response to a solicitation issued by the executive agency
shall take into account any disclosure made pursuant to
subsection (a) in such bids and proposals.
``(2) The head of an executive agency shall deny a bid or
proposal of a contractor that makes a disclosure pursuant to
subsection (a).
``(c) Exclusion From Sources.--
``(1) In general.--The head of an executive agency may
provide for the procurement of property and services using
competitive procedures but excluding a source making a
disclosure under subsection (a) in the bid or proposal in
response to the solicitation issued by the executive agency
if the head of the executive agency determines that the
actions described by disclosure are against the public
interests of the United States and the source is to be
excluded on those grounds. Any such determination shall take
into account the sense of Congress set forth in paragraph
(2).
``(2) Sense of congress.--It is the sense of Congress that
contracting officers of executive agencies may use paragraph
(1) to exclude contractors making a disclosure pursuant to
subsection (a) in response to a solicitation issued by the
executive agency from the bidding process in connection with
the solicitation on the grounds that the actions described by
the disclosure are against the public interests of the United
States.
``(d) Annual Report.--The head of each executive agency
shall submit to Congress each year a report on the following:
``(1) The number of solicitations made by the executive
agency during the preceding year for which disclosures were
made pursuant to subsection (a) in responsive bids or
proposals.
``(2) The number of contracts awarded to contractors that
disclosed having outsourced more than 50 jobs during the
preceding three years.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 35 of such title is amended by inserting
after the item relating to section 3303 the following new
item:
``3303a. Bidders outsourcing jobs: disclosure of outsourcing;
consideration of outsourcing in award; exclusion from
sources.''.
(3) Conforming amendment.--Section 3301(a) of such title is
amended by inserting ``3303a(c),'' after ``3303,''.
(c) Regulations.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Federal Acquisition Regulatory
Council, in consultation with the heads of relevant agencies,
shall amend the Federal Acquisition Regulation and the
Defense Federal Acquisition Regulation Supplement to carry
out the requirements of section 3303a of title 41, United
States Code, and section 3228 of title 10, United States
Code, as added by this section.
(2) Definition of outsourcing.--For purposes of defining
outsourcing pursuant to paragraph (1), the Federal
Acquisition Regulatory Council may utilize regulations
prescribed by the Secretary of Labor.
(d) Rule of Construction.--This section, and the amendments
made by this section, shall be applied in a manner consistent
with United States obligations under international
agreements.
SEC. 6409. CURRENT YEAR INCLUSION OF NET CFC TESTED INCOME.
(a) Repeal of Tax-Free Deemed Return on Investments.--
(1) In general.--Section 951A(a) of the Internal Revenue
Code of 1986 is amended by striking ``global intangible low-
taxed income'' and inserting ``net CFC tested income''.
(2) Conforming amendments.--
(A) Section 951A of such Code is amended by striking
subsections (b) and (d).
(B) Section 951A(e)(1) of such Code is amended by striking
``subsections (b), (c)(1)(A), and'' and inserting
``subsections (c)(1)(A) and''.
(C) Section 951A(f) of such Code is amended to read as
follows:
``(f) Treatment as Subpart F Income for Certain Purposes.--
``(1) In general.--Except as provided in paragraph (2), any
net CFC tested income included in gross income under
subsection (a) shall be treated in the same manner as an
amount included under section 951(a)(1)(A) for purposes of
applying sections 168(h)(2)(B), 535(b)(10), 851(b),
904(h)(1), 959, 961, 962, 993(a)(1)(E), 996(f)(1),
1248(b)(1), 1248(d)(1), 6501(e)(1)(C), 6654(d)(2)(D), and
6655(e)(4).
``(2) Exception.--The Secretary shall provide rules for the
application of paragraph (1) to other provisions of this
title in any case in which the determination of subpart F
income is required to be made at the level of the controlled
foreign corporation.''.
(D) Section 960(d)(2)(A) of such Code is amended by
striking ``global intangible low-taxed income (as defined in
section 951A(b))'' and inserting ``net CFC tested income (as
defined in section 951A(c))''.
(b) Repeal of Reduced Rate of Tax on Net CFC Tested
Income.--
(1) In general.--Part VIII of subchapter B of chapter 1 of
such Code is amended by striking section 250 (and by striking
the item relating to such section in the table of sections of
such part).
[[Page S3128]]
(2) Conforming amendments.--
(A) Section 59A(c)(4)(B)(i) of such Code is amended by
striking ``section 172, 245A, or 250'' and inserting
``section 172 or 245A''.
(B) Section 172(d) of such Code is amended by striking
paragraph (9).
(C) Section 246(b)(1) of such Code is amended--
(i) by striking ``subsection (a) and (b) of section 245,
and section 250'' and inserting ``and subsection (a) and (b)
of section 245''; and
(ii) by striking ``subsection (a) and (b) of section 245,
and 250'' and inserting ``and subsection (a) and (b) of
section 245''.
(D) Section 469(i)(3)(F)(iii) is amended by striking ``222,
and 250'' and inserting ``and 222''.
(c) Net CFC Tested Income Determined Without Regard to High
Tax Foreign Income.--Section 951A(c)(2)(A)(i) of such Code is
amended by redesignating subclauses (IV) and (V) as
subclauses (V) and (VI), respectively, and by inserting after
subclause (III) the following new subclause:
``(IV) any item of income subject to an effective rate of
income tax imposed by a foreign country greater than the
maximum rate of tax specified in section 11,''.
(d) Repeal of Exclusion of Foreign Oil and Gas Extraction
Income From the Determination of Tested Income.--Section
951A(c)(2)(A)(i) of such Code, as amended by subsection (c),
is amended--
(1) by adding ``and'' at the end of subclause (IV);
(2) by striking ``and'' at the end of subclause (V) and
inserting ``over''; and
(3) by striking subclause (VI).
(e) Increase in Deemed Paid Credit for Taxes Properly
Attributable to Tested Income.--
(1) In general.--Section 960(d) of such Code is amended by
striking ``80 percent of''.
(2) Conforming amendment.--Section 78 of such Code is
amended by striking ``(determined without regard to the
phrase ``80 percent of'' in subsection (d)(1) thereof)''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years of foreign corporations beginning after
December 31, 2020, and to taxable years of United States
shareholders in which or with which such taxable years of
foreign corporations end.
(2) Repeal of reduced rate of tax; increase in deemed paid
credit.--The amendments made by subsection (b) and (e) shall
apply to taxable years beginning after December 31, 2020.
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