Blocking New Corporate Tax Giveaways Act

II 116TH CONGRESS 2D SESSION S. 3280 To amend the Internal Revenue Code of 1986 to clarify that high-taxed amounts are excluded from tested income for purposes of determining global intangible low-taxed income only if such amounts would be foreign base company income or insurance income. IN THE SENATE OF THE UNITED STATES FEBRUARY 12, 2020 Mr. WYDEN (for himself and Mr. BROWN) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to clarify that high-taxed amounts are excluded from tested income for purposes of determining global intangible low-taxed income only if such amounts would be foreign base com- pany income or insurance income. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Blocking New Cor- 4 porate Tax Giveaways Act’’. 5 VerDate Sep 11 2014 01:49 Feb 19, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3280.IS S3280 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3280 IS SEC. 2. CLARIFICATION OF AMOUNTS EXCLUDED FROM 1 TESTED INCOME. 2 (a) IN GENERAL.—Section 951A(c)(2)(A)(i)(III) of 3 the Internal Revenue Code of 1986 is amended to read 4 as follows: 5 ‘‘(III) any gross income of such 6 corporation— 7 ‘‘(aa) which, without regard 8 to section 954(b)(4), is treated as 9 foreign base company income (as 10 defined in section 954) or insur- 11 ance income (as defined in sec- 12 tion 953), but 13 ‘‘(bb) which, after the appli- 14 cation of section 954(b)(4), is not 15 so treated,’’. 16 (b) EFFECTIVE DATE.—The amendment made by 17 this section shall apply to taxable years of foreign corpora- 18 tions beginning on or after the date of the enactment of 19 this Act, and to taxable years of United States share- 20 holders in which or with which such taxable years of for- 21 eign corporations end. 22 Æ VerDate Sep 11 2014 01:49 Feb 19, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S3280.IS S3280 pamtmann on DSKBC07HB2PROD with BILLS