S. 3280 - Blocking New Corporate Tax Giveaways Act

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 _____

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 company income or insurance income.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the "Blocking New Corporate Tax Giveaways Act".

SEC. 2. CLARIFICATION OF AMOUNTS EXCLUDED FROM TESTED INCOME.

(a) IN GENERAL. — Section 951A(c)(2)(A)(i)(III) of the Internal Revenue Code of 1986 is amended to read  as follows:

‘‘(III) any gross income of the such corporation — 

‘‘(aa) which, without regard to section 954(b)(4), is treated as foreign base company income (as defined in section 954) or insurance income (as defined in section 953), but 

‘‘(bb) which, after the application of section 954(b)(4), is not so treated,’’.

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years of foreign corporation beginning on or after the date of the enactment of this Act, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end.