[Congressional Record (Bound Edition), Volume 157 (2011), Part 7]
[Senate]
[Pages 8992-8995]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 459. Mr. INHOFE submitted an amendment intended to be proposed by 
him to the bill S. 782, to amend the Public Works and Economic 
Development Act of 1965 to reauthorize that Act, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 19, between the matter after line 2 and line 3, 
     insert the following:

     SEC. 13. OVERSIGHT AUTHORITY.

       (a) In General.--Title II of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended 
     by section 12(a)) is amended by adding at the end the 
     following:

     ``SEC. 220. OVERSIGHT AUTHORITY.

       ``For each fiscal year, the Government Accountability 
     Office shall--
       ``(1) conduct such audits and assessments as are necessary 
     to ensure, to the maximum extent practicable, that funds 
     provided in the form of grants under this Act are so 
     provided--
       ``(A) through a competitive award process; and
       ``(B) in accordance with all requirements and criteria 
     established under this Act; and
       ``(2) submit to the Committee on Environment and Public 
     Works of the Senate and the Committee of Transportation and 
     Infrastructure of the House of Representatives a report 
     describing the results of the audits and assessments.''.
       (b) Conforming Amendment.--The table of contents of the 
     Public Works and Economic Development Act of 1965 (42 U.S.C. 
     3121 et seq.) is amended by adding after the item relating to 
     section 219 (as added by section 12(b)) the following:

``Sec. 220. Oversight authority.''.
                                 ______
                                 
  SA 460. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill S. 782, to amend the Public Works and Economic 
Development Act of 1965 to reauthorize that Act, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. REPEAL OF RENEWABLE FUEL STANDARD.

       Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is 
     repealed.

     SEC. ___. PERMANENT ESTATE TAX RELIEF.

       (a) In General.--Title III of the Tax Relief, Unemployment 
     Insurance Reauthorization, and Job Creation Act of 2010, and 
     the amendments made thereby, are repealed; and the Internal 
     Revenue Code of 1986 shall be applied as if such title, and 
     amendments, had never been enacted.

       (b) Exclusion From EGGTRA Sunset.--Section 901 of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 
     shall not apply to the provisions of, and amendments made by, 
     subtitle A or E of title V of such Act.

       (c) Effective Date.--The repeal made by subsection (a) 
     shall apply to estates of decedents dying, gifts made, and 
     generation skipping transfers after December 31, 2009.

                                 ______
                                 
  SA 461. Mr. ENZI submitted an amendment intended to be proposed by 
him to the bill S. 782, to amend the Public Works and Economic 
Development Act of 1965 to reauthorize that Act, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of the bill, add the following:


     SEC. __. LIGHTING ENERGY EFFICIENCY.

       (a) In General.--Subtitle B of title III of the Energy 
     Independence and Security Act of 2007 (Public Law 110-140) is 
     repealed.

       (b) Application.--The Energy Policy and Conservation Act 
     (42 U.S.C. 6201 et seq.) shall be applied and administered as 
     if subtitle B of title III of the Energy Independence and 
     Security Act of 2007 (and the amendments made by that 
     subtitle) had not been enacted.

                                 ______
                                 
  SA 462. Mr. GRASSLEY submitted an amendment intended to be proposed 
by him to the bill S. 782, to amend the Public Works and Economic 
Development Act of 1965 to reauthorize that Act, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 19, between the matter after line 19 and line 20, 
     insert the following:

     SEC. 13. PREVENTION OF FRAUD, WASTE, AND ABUSE OF TAXPAYER 
                   DOLLARS THROUGH EFFECTIVE OVERSIGHT.

       (a) In General.--Title II of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended 
     by section 12(a)) is amended by adding at the end the 
     following:

     ``SEC. 220. PREVENTION OF FRAUD, WASTE, AND ABUSE OF TAXPAYER 
                   DOLLARS THROUGH EFFECTIVE OVERSIGHT.

       ``(a) In General.--To limit, fraud, waste, and abuse, any 
     grant authorized or funded under section 203, 207(a), 701(a), 
     or 704 shall be subject to the requirements of this section.
       ``(b) Prohibition on Awarding of Grants to Delinquent 
     Federal Debtors.--
       ``(1) In general.--The head of any executive agency that 
     offers a grant under a provision of law referred to in 
     subsection (a), in excess of an amount equal to the 
     simplified acquisition threshold (as defined in section 134 
     of title 41, United States Code), may not award such grant to 
     any person unless such person submits with the application 
     for such grant a form--
       ``(A) certifying that the person does not have a seriously 
     delinquent tax debt; and
       ``(B) authorizing the Secretary of the Treasury to disclose 
     to the head of the executive agency information limited to 
     describing whether the person has a seriously delinquent tax 
     debt.
       ``(2) Time of disclosure.--The authorization for disclosure 
     required under paragraph (1)(B) shall authorize such 
     disclosures to be made with respect to seriously delinquent 
     tax debt--
       ``(A) at the time the form described in paragraph (1) is 
     submitted, and
       ``(B) in the case of a grant that is awarded over period 
     lasting more than 1 year, for each year during which the 
     person receives such grant beginning with the year after the 
     year in which the form described in paragraph (1) is 
     submitted .
       ``(3) Release of information.--The Secretary of the 
     Treasury shall make available to all executive agencies a 
     standard form for the certification and authorization 
     described in paragraph (1).
       ``(4) Revision of regulations.--Not later than 270 days 
     after the date of the enactment of this section, the Director 
     of the Office of Management and Budget shall revise such 
     regulations as necessary to incorporate the requirements of 
     this section.
       ``(5) Definitions and special rules.--For purposes of this 
     section:
       ``(A) Seriously delinquent tax debt.--
       ``(i) In general.--The term `seriously delinquent tax debt' 
     means an outstanding debt under the Internal Revenue Code of 
     1986 for which a notice of lien has been filed in public 
     records pursuant to section 6323 of such Code.
       ``(ii) Exceptions.--Such term does not include--

       ``(I) a debt that is being paid in a timely manner pursuant 
     to an agreement under section 6159 or section 7122 of such 
     Code; and
       ``(II) a debt with respect to which a collection due 
     process hearing under section 6330 of such Code, or relief 
     under subsection (b), (c), or (f) of section 6015 of such 
     Code, is requested or pending.

       ``(B) Executive agency.--The term `executive agency' has 
     the meaning given such term in section 133 of title 41, 
     United States Code.
       ``(C) Secretary of the treasury.--The term `Secretary of 
     the Treasury' includes a delegate of the Secretary of the 
     Treasury.
       ``(D) Treatment of partnerships and s corporations.--
       ``(i) Partnerships.--A partnership shall be treated as a 
     person with a seriously delinquent tax debt if such 
     partnership has a partner who--

       ``(I) owns 50 percent or more of either the capital 
     interest or profits interest in such partnership; and
       ``(II) has a seriously delinquent tax debt.

       ``(ii) Treatment of s corporations.--An S corporation (as 
     defined in section 1361 of the Internal Revenue Code of 1986) 
     shall be treated as a person with a seriously delinquent tax 
     debt if such S corporation has a member or a shareholder 
     who--

       ``(I) owns 50 percent or more (by vote or value) of the 
     stock of such corporation; and
       ``(II) has a seriously delinquent tax debt.

       ``(c) Annual Audits.--
       ``(1) Definition of unresolved audit finding.--In this 
     subsection, the term `unresolved audit finding' means an 
     audit report finding or recommendation that the grantee has 
     used grant funds for an unauthorized expenditure or otherwise 
     unallowable cost that is not closed or resolved during the 1-
     year period beginning on the date of an initial notification 
     of the finding or recommendation.
       ``(2) Audit requirement.--Effective for fiscal year 2012 
     and each fiscal year thereafter, to prevent waste, fraud, and 
     abuse of funds by grantees, the Comptroller General of the 
     United States shall conduct an audit of not less than 10 
     percent of all grantees awarded funding under a provision of 
     law referred to in subsection (a).
       ``(3) Mandatory exclusion.--A grantee that is awarded funds 
     under a provision of law referred to in subsection (a) that 
     is found to have an unresolved audit finding shall not be 
     eligible for an award of grant funds under this Act for the 2 
     fiscal years following the applicable 1-year period described 
     in paragraph (1).''.
       (b) Technical Amendment.--The table of contents of the 
     Public Works and Economic Development Act of 1965 (42 U.S.C. 
     3121 et seq.) is amended by adding after section 219 (as 
     added by section 12(b)) the following:

``Sec. 220. Prevention of fraud, waste, and abuse of taxpayer dollars 
              through effective oversight.''.
                                 ______
                                 
  SA 463. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill S. 782, to amend the

[[Page 8993]]

 Public Works and Economic Development Act of 1965 to reauthorize that 
Act, and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 29, after line 20, add the following:

     SEC. ___. CLOSURE OF BIG OIL TAX LOOPHOLES.

       (a) Findings.--Congress finds that--
       (1) gas prices have risen significantly largely in response 
     to unrest in north Africa and the Middle East, unrest that 
     speculators are capitalizing on to increase oil futures 
     prices and make huge profits;
       (2) high gas prices are hurting the quality of life of 
     people of the United States, cutting into savings, and 
     jeopardizing jobs and the economic recovery of the United 
     States;
       (3) implementation of the regulatory reforms enacted by 
     Congress in the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act (Public Law 111-203; 124 Stat. 1376) to 
     prevent energy market manipulation and control excessive 
     speculation has been delayed and has been threatened with 
     funding reductions in the House of Representatives;
       (4) the United States is producing more oil than any time 
     in the last 13 years and companies hold abundant inventories 
     of oil, but the United States is still importing more than 
     11,000,000 barrels of oil per day and the Energy Information 
     Administration projects that full production in all onshore 
     and offshore areas would reduce gas prices by only 3 cents 
     per gallon by 2030;
       (5) domestic refining capacity now exceeds United States 
     demand for refined petroleum products, resulting in increased 
     idle refinery capacity;
       (6) oil companies are sitting idly on approximately 
     60,000,000 acres of leased Federal lands and waters 
     containing more than 11,000,000,000 barrels of oil and 
     59,000,000,000,000 cubic feet of natural gas;
       (7) the United States possesses less than 2 percent of the 
     proven oil reserves of the world, yet consumes an 
     unsustainable 25 percent of the oil production of the world;
       (8) the economy of the United States suffers huge net 
     losses in jobs and productivity from the growing annual trade 
     deficit in energy, due mainly to the outflow of 
     $250,000,000,000 or more to pay for foreign oil;
       (9) world oil prices have risen steadily since the slow 
     beginning of the global economic recovery and, absent major 
     efficiency or conservation improvements or deployment of 
     alternative fuels, those oil prices are projected to remain 
     well above $100 per barrel or higher as world demand grows as 
     China, India and other countries industrialize;
       (10) the oil production policies of cartel of the 
     Organization of the Petroleum Exporting Countries (OPEC) are 
     a large determinant of the world price of oil, so the economy 
     of the United States will be affected by decisions of OPEC as 
     long as the United States depends on oil for a significant 
     portion of the energy consumption of the United States;
       (11) the major oil companies have accumulated more than 
     $1,000,000,000,000 in net profits over the last 10 years and 
     collected more than $40,000,000,000 in tax breaks during the 
     same period, but have invested negligible amounts of those 
     funds into research and development of the production of 
     clean and renewable fuels made in the United States, leaving 
     consumers with few if any choices at the pump; and
       (12) in the Energy Independence and Security Act of 2007 
     (42 U.S.C. 17001 et seq.), Congress increased fuel economy 
     standards for the first time in 30 years and established 
     ambitious requirements for domestic biofuels, actions that 
     have reduced oil consumption and reduced upward pressure on 
     gas prices.
       (b) Sense of Senate on High Gas Prices.--It is the sense of 
     the Senate that--
       (1) the President and Administration should be commended 
     for recognizing the severity of high gas prices and for 
     taking appropriate actions to help reduce gas prices, 
     including actions--
       (A) to move forward with expeditious and responsible 
     domestic production in the Gulf of Mexico and elsewhere;
       (B) to form a Task Force led by the Department of Justice 
     to investigate and eliminate oil and gas price gouging and 
     market manipulation;
       (C) to establish a national oil savings goal to cut imports 
     by 33 percent by 2025;
       (D) to call for 1,000,000 electric vehicles to be on the 
     road by 2015;
       (E) to harmonize corporate average fuel standards under 
     section 32902 of title 49, United States Code, (CAFE) and 
     carbon pollution standards to achieve 1,800,000,000 barrels 
     in oil savings from new vehicles built before 2017, and 
     working with stakeholders to increase those savings from 
     future year vehicles;
       (F) to establish the National Clean Fleets Partnership and 
     Green Fleet Initiative to reduce diesel and gasoline use in 
     fleets by incorporating electric vehicles, alternative fuels 
     like natural gas, and efficiency measures; and
       (G) to clarify and expand the use of E-15 fuel for new 
     motor vehicles;
       (2) Congress should take additional actions to complement 
     the efforts of the President, including enacting provisions--
       (A) to encourage diligent and responsible development of 
     domestic oil and gas resources onshore and off-shore;
       (B) to eliminate subsidies for major oil and gas companies 
     and use the savings to promote research, development, and 
     deployment of affordable alternative fuels and vehicles;
       (C) to give consumers more choices at the pump and 
     incentives for buying vehicles that displace petroleum 
     consumption; and
       (D) to direct and fund the Commodity Futures Trading 
     Commission and the Federal Trade Commission to rapidly 
     implement the energy consumer protection requirements of the 
     Dodd-Frank Wall Street Reform and Consumer Protection Act 
     (Public Law 111-203; 124 Stat. 1376);
       (3) the Organization of the Petroleum Exporting Countries 
     (OPEC) should contribute to the stabilization of world oil 
     markets and prices and reduce the burden of high gasoline 
     prices borne by the consumers in the United States by using 
     existing idle oil production capacity to compensate for any 
     supply shortages experienced in member countries; and
       (4) the economic, environmental, and national security of 
     the United States depend on a sustained effort to drastically 
     reduce and eventually eliminate the dependency of the United 
     States on oil.
       (c) Modifications of Foreign Tax Credit Rules Applicable to 
     Major Integrated Oil Companies Which Are Dual Capacity 
     Taxpayers.--
       (1) In general.--Section 901 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (n) as 
     subsection (o) and by inserting after subsection (m) the 
     following new subsection:
       ``(n) Special Rules Relating to Major Integrated Oil 
     Companies Which Are Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer which is a major integrated oil company (as defined 
     in section 167(h)(5)(B)) to a foreign country or possession 
     of the United States for any period shall not be considered a 
     tax--
       ``(A) if, for such period, the foreign country or 
     possession does not impose a generally applicable income tax, 
     or
       ``(B) to the extent such amount exceeds the amount 
     (determined in accordance with regulations) which--
       ``(i) is paid by such dual capacity taxpayer pursuant to 
     the generally applicable income tax imposed by the country or 
     possession, or
       ``(ii) would be paid if the generally applicable income tax 
     imposed by the country or possession were applicable to such 
     dual capacity taxpayer.

     Nothing in this paragraph shall be construed to imply the 
     proper treatment of any such amount not in excess of the 
     amount determined under subparagraph (B).
       ``(2) Dual capacity taxpayer.--For purposes of this 
     subsection, the term `dual capacity taxpayer' means, with 
     respect to any foreign country or possession of the United 
     States, a person who--
       ``(A) is subject to a levy of such country or possession, 
     and
       ``(B) receives (or will receive) directly or indirectly a 
     specific economic benefit (as determined in accordance with 
     regulations) from such country or possession.
       ``(3) Generally applicable income tax.--For purposes of 
     this subsection--
       ``(A) In general.--The term `generally applicable income 
     tax' means an income tax (or a series of income taxes) which 
     is generally imposed under the laws of a foreign country or 
     possession on income derived from the conduct of a trade or 
     business within such country or possession.
       ``(B) Exceptions.--Such term shall not include a tax unless 
     it has substantial application, by its terms and in practice, 
     to--
       ``(i) persons who are not dual capacity taxpayers, and
       ``(ii) persons who are citizens or residents of the foreign 
     country or possession.''.
       (2) Effective date.--
       (A) In general.--The amendments made by this subsection 
     shall apply to taxes paid or accrued in taxable years 
     beginning after the date of the enactment of this Act.
       (B) Contrary treaty obligations upheld.--The amendments 
     made by this subsection shall not apply to the extent 
     contrary to any treaty obligation of the United States.
       (d) Limitation on Section 199 Deduction Attributable to 
     Oil, Natural Gas, or Primary Products Thereof.--
       (1) Denial of deduction.--Paragraph (4) of section 199(c) 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new subparagraph:
       ``(E) Special rule for certain oil and gas income.--In the 
     case of any taxpayer who is a major integrated oil company 
     (as defined in section 167(h)(5)(B)) for the taxable year, 
     the term `domestic production gross receipts' shall not 
     include gross receipts from the production, transportation, 
     or distribution of oil, natural gas, or any primary product 
     (within the meaning of subsection (d)(9)) thereof.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2011.
       (e) Limitation on Deduction for Intangible Drilling and 
     Development Costs.--
       (1) In general.--Section 263(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new sentence:

[[Page 8994]]

     ``This subsection shall not apply to amounts paid or incurred 
     by a taxpayer in any taxable year in which such taxpayer is a 
     major integrated oil company (as defined in section 
     167(h)(5)(B)).''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2011.
       (f) Limitation on Percentage Depletion Allowance for Oil 
     and Gas Wells.--
       (1) In general.--Section 613A of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(f) Application With Respect to Major Integrated Oil 
     Companies.--In the case of any taxable year in which the 
     taxpayer is a major integrated oil company (as defined in 
     section 167(h)(5)(B)), the allowance for percentage depletion 
     shall be zero.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2011.
       (g) Limitation on Deduction for Tertiary Injectants.--
       (1) In general.--Section 193 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(d) Application With Respect to Major Integrated Oil 
     Companies.--This section shall not apply to amounts paid or 
     incurred by a taxpayer in any taxable year in which such 
     taxpayer is a major integrated oil company (as defined in 
     section 167(h)(5)(B)).''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2011.
       (h) Repeal of Outer Continental Shelf Deep Water and Deep 
     Gas Royalty Relief.--
       (1) In general.--Sections 344 and 345 of the Energy Policy 
     Act of 2005 (42 U.S.C. 15904, 15905) are repealed.
       (2) Administration.--The Secretary of the Interior shall 
     not be required to provide for royalty relief in the lease 
     sale terms beginning with the first lease sale held on or 
     after the date of enactment of this Act for which a final 
     notice of sale has not been published.
       (i) Deficit Reduction.--The net amount of any savings 
     realized as a result of the enactment of this section and the 
     amendments made by this section (after any expenditures 
     authorized by this section and the amendments made by this 
     section) shall be deposited in the Treasury and used for 
     Federal budget deficit reduction or, if there is no Federal 
     budget deficit, for reducing the Federal debt in such manner 
     as the Secretary of the Treasury considers appropriate.
       (j) Budgetary Effects.--The budgetary effects of this 
     section, for the purpose of complying with the Statutory Pay-
     As-You-Go-Act of 2010, shall be determined by reference to 
     the latest statement titled ``Budgetary Effects of PAYGO 
     Legislation'' for this section, submitted for printing in the 
     Congressional Record by the Chairman of the Senate Budget 
     Committee, provided that such statement has been submitted 
     prior to the vote on passage.
                                 ______
                                 
  SA 464. Mr. WHITEHOUSE submitted an amendment intended to be proposed 
by him to the bill S. 782, to amend the Public Works and Economic 
Development Act of 1965 to reauthorize that Act, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 9, strike lines 12 through 16 and insert the 
     following:
       ``(A) 125-percent higher unemployment rate.--In the case of 
     a grant made in an area for which the 24-month unemployment 
     rate is at least 125 percent of the national average or the 
     per capita income is not more than
                                 ______
                                 
  SA 465. Mr. WHITEHOUSE submitted an amendment intended to be proposed 
by him to the bill S. 782, to amend the Public Works and Economic 
Development Act of 1965 to reauthorize that Act, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. ___. TAXATION OF INCOME OF CONTROLLED FOREIGN 
                   CORPORATIONS ATTRIBUTABLE TO IMPORTED PROPERTY.

       (a) General Rule.--Subsection (a) of section 954 of the 
     Internal Revenue Code of 1986 is amended by striking the 
     period at the end of paragraph (5) and inserting ``, and'', 
     by redesignating paragraph (5) as paragraph (4), and by 
     adding at the end the following new paragraph:
       ``(5) imported property income for the taxable year 
     (determined under subsection (j) and reduced as provided in 
     subsection (b)(5)).''.
       (b) Definition of Imported Property Income.--Section 954 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new subsection:
       ``(j) Imported Property Income.--
       ``(1) In general.--For purposes of subsection (a)(5), the 
     term `imported property income' means income (whether in the 
     form of profits, commissions, fees, or otherwise) derived in 
     connection with--
       ``(A) manufacturing, producing, growing, or extracting 
     imported property;
       ``(B) the sale, exchange, or other disposition of imported 
     property; or
       ``(C) the lease, rental, or licensing of imported property.

     Such term shall not include any foreign oil and gas 
     extraction income (within the meaning of section 907(c)) or 
     any foreign oil related income (within the meaning of section 
     907(c)).
       ``(2) Imported property.--For purposes of this subsection--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the term `imported property' means property which 
     is imported into the United States by the controlled foreign 
     corporation or a related person.
       ``(B) Imported property includes certain property imported 
     by unrelated persons.--The term `imported property' includes 
     any property imported into the United States by an unrelated 
     person if, when such property was sold to the unrelated 
     person by the controlled foreign corporation (or a related 
     person), it was reasonable to expect that--
       ``(i) such property would be imported into the United 
     States; or
       ``(ii) such property would be used as a component in other 
     property which would be imported into the United States.
       ``(C) Exception for property subsequently exported.--The 
     term `imported property' does not include any property which 
     is imported into the United States and which--
       ``(i) before substantial use in the United States, is sold, 
     leased, or rented by the controlled foreign corporation or a 
     related person for direct use, consumption, or disposition 
     outside the United States; or
       ``(ii) is used by the controlled foreign corporation or a 
     related person as a component in other property which is so 
     sold, leased, or rented.
       ``(D) Exception for certain agricultural commodities.--The 
     term `imported property' does not include any agricultural 
     commodity which is not grown in the United States in 
     commercially marketable quantities.
       ``(3) Definitions and special rules.--
       ``(A) Import.--For purposes of this subsection, the term 
     `import' means entering, or withdrawal from warehouse, for 
     consumption or use. Such term includes any grant of the right 
     to use intangible property (as defined in section 
     936(h)(3)(B)) in the United States.
       ``(B) United states.--For purposes of this subsection, the 
     term `United States' includes the Commonwealth of Puerto 
     Rico, the Virgin Islands of the United States, Guam, American 
     Samoa, and the Commonwealth of the Northern Mariana Islands.
       ``(C) Unrelated person.--For purposes of this subsection, 
     the term `unrelated person' means any person who is not a 
     related person with respect to the controlled foreign 
     corporation.
       ``(D) Coordination with foreign base company sales 
     income.--For purposes of this section, the term `foreign base 
     company sales income' shall not include any imported property 
     income.''.
       (c) Separate Application of Limitations on Foreign Tax 
     Credit for Imported Property Income.--
       (1) In general.--Paragraph (1) of section 904(d) of the 
     Internal Revenue Code of 1986 is amended by striking ``and'' 
     at the end of subparagraph (A), by redesignating subparagraph 
     (B) as subparagraph (C), and by inserting after subparagraph 
     (A) the following new subparagraph:
       ``(B) imported property income, and''.
       (2) Imported property income defined.--Paragraph (2) of 
     section 904(d) of such Code is amended by redesignating 
     subparagraphs (I), (J), and (K) as subparagraphs (J), (K), 
     and (L), respectively, and by inserting after subparagraph 
     (H) the following new subparagraph:
       ``(I) Imported property income.--The term `imported 
     property income' means any income received or accrued by any 
     person which is of a kind which would be imported property 
     income (as defined in section 954(j)).''.
       (3) Conforming amendment.--Clause (ii) of section 
     904(d)(2)(A) of such Code is amended by inserting ``or 
     imported property income'' after ``passive category income''.
       (d) Technical Amendments.--
       (1) Clause (iii) of section 952(c)(1)(B) of the Internal 
     Revenue Code of 1986 is amended--
       (A) by redesignating subclauses (II), (III), (IV), and (V) 
     as subclauses (III), (IV), (V), and (VI), and
       (B) by inserting after subclause (I) the following new 
     subclause:

       ``(II) imported property income,''.

       (2) The last sentence of paragraph (4) of section 954(b) of 
     such Code is amended by striking ``subsection (a)(5)'' and 
     inserting ``subsection (a)(4)''.
       (3) Paragraph (5) of section 954(b) of such Code is amended 
     by striking ``and the foreign base company oil related 
     income'' and inserting ``the foreign base company oil related 
     income, and the imported property income''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after the date of the enactment of this Act, and to 
     taxable years of United States shareholders within which or 
     with which such taxable years of such foreign corporations 
     end.

[[Page 8995]]



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