[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.
                                 ______