Text of Senate Amendment 4412

Text of Senate Amendment 4412

Congressional Record, Volume 172 Issue 48 (Tuesday, March 17, 2026) [Congressional Record Volume 172, Number 48 (Tuesday, March 17, 2026)] [Senate] [Pages S1112-S1116] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] SA 4412. Mr. WHITEHOUSE submitted an amendment intended to be proposed by him to the bill S. 1383, to establish the Veterans Advisory Committee on Equal Access, and for other purposes; which was ordered to lie on the table; as follows: In lieu of the matter proposed to be inserted, insert the following: SECTION 1. SHORT TITLE, ETC. (a) Short Title.--This title may be cited as the ``No Tax Breaks for Outsourcing Act''. (b) Amendment of 1986 Code.--Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of Contents.--The table of contents of this Act is as follows: Sec. 1. Short title, etc. Sec. 2. Current year inclusion of net CFC tested income. Sec. 3. Country-by-country application of limitation on foreign tax credit based on taxable units. Sec. 4. Limitation on deduction of interest by domestic corporations which are members of an international financial reporting group. Sec. 5. Modifications to rules relating to inverted corporations. Sec. 6. Treatment of foreign corporations managed and controlled in the United States as domestic corporations. SEC. 2. CURRENT YEAR INCLUSION OF NET CFC TESTED INCOME. (a) Country-by-Country Application of Section Based on CFC Taxable Units.--Section 951A is amended by adding at the end the following new subsection: [[Page S1113]] ``(e) Country-by-Country Application of Section Based on CFC Taxable Units.-- ``(1) In general.--If any CFC taxable unit of a United States shareholder is a tax resident of (or, in the case of a branch, is located in) a country which is different from the country with respect to which any other CFC taxable unit of such United States shareholder is a tax resident (or, in the case of a branch, is located in)-- ``(A) such shareholder's net CFC tested income for purposes of subsection (a) shall be the sum of the amounts of net CFC tested income determined separately with respect to each such country, and ``(B) for purposes of determining such separate amounts of net CFC tested income-- ``(i) except as otherwise provided by the Secretary, any reference in subsection (b) to a controlled foreign corporation of such shareholder shall be treated as reference to a CFC taxable unit of such shareholder, and ``(ii) net CFC tested income and such other items and amounts as the Secretary may provide, shall be determined separately with respect to each such country by determining such amounts with respect to the CFC taxable units of such shareholder which are a tax resident of such country. ``(2) Definitions.--For purposes of this subsection-- ``(A) CFC taxable unit.--The term `CFC taxable unit' means any taxable unit described in clause (ii), (iii), or (iv) of section 904(e)(2)(B), determined-- ``(i) by substituting `controlled foreign corporation' for `foreign corporation' each place it appears in such clauses, and ``(ii) without regard to the references to the taxpayer in clauses (iii) and (iv) of such section. ``(B) Application of other definitions.--Terms used in this subsection which are also used in section 904(e) shall have the same meaning as when used in section 904(e). ``(3) Special rules.--For purposes of this subsection-- ``(A) Application of certain rules.--Except as otherwise provided by the Secretary, rules similar to the rules of section 904(e) shall apply. ``(B) Allocation of net cfc tested income to controlled foreign corporations.--Except as otherwise provided by the Secretary, subsection (d)(2) shall be applied separately with respect to each CFC taxable unit.''. (b) Regulatory Authority.--Section 951A, as amended by subsection (b), is amended by adding at the end the following new subsection: ``(f) Regulations.--The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out, or prevent the avoidance of, the purposes of this section, including regulations or guidance which provide for-- ``(1) the treatment of property if such property is transferred, or held, temporarily, ``(2) the treatment of property if the avoidance of the purposes of this section is a factor in the transfer or holding of such property, ``(3) appropriate adjustments to the basis of stock and other ownership interests, and to earnings and profits, to reflect tested losses (whether or not taken into account in determining net CFC tested income), ``(4) rules similar to the rules provided under the regulations or guidance issued under section 904(e)(4), ``(5) other appropriate basis adjustments, ``(6) appropriate adjustments to be made, and appropriate tax attributes and records to be maintained, separately with respect to CFC taxable units, and ``(7) appropriate adjustments in determining tested income or tested loss if property is transferred between related parties or amounts are paid or accrued between related parties.''. (c) Coordination With Other Provisions.--Section 951A(d)(1) is amended by adding at the end the following new subparagraph: ``(C) Treatment of certain references.--Except as otherwise provided by the Secretary, references to section 951 or section 951(a) in sections 959, 961, 962, and such other provisions as the Secretary may identify shall include references to section 951A or section 951A(a), respectively.''. (d) Repeal of Reduced Rate of Tax on Net CFC Tested Income and Foreign-derived Intangible Income.-- (1) In general.--Part VIII of subchapter B of chapter 1 is amended by striking section 250 (and by striking the item relating to such section in the table of sections of such part). (2) Conforming amendments.-- (A) Section 59A(c)(4)(B)(i) is amended by striking ``section 172, 245A, or 250'' and inserting ``section 172 or 245A''. (B) Section 172(d) is amended by striking paragraph (9). (C) Section 246(b)(1) 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)(E)(iii) is amended by striking ``, 221, and 250'' and inserting ``and 221''. (E) Section 904(b)(5) is amended-- (i) by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), and (ii) by striking ``subparagraphs (B) and (C)'' in the second sentence and inserting ``subparagraphs (A) and (B)''. (e) Repeal of Certain Exclusions From the Determination of Tested Income.--Section 951A(b)(2)(A)(i) is amended-- (1) by striking subclauses (III) and (V), (2) by redesignating subclause (IV) as subclause (III), (3) by adding ``and'' at the end of subclause (II), and (4) by striking ``and'' at the end of subclause (III) (as so redesignated) and inserting ``over''. (f) Increase in Deemed Paid Credit for Taxes Properly Attributable to Tested Income.-- (1) In general.--Section 960(d) is amended by striking ``90 percent of''. (2) Conforming amendments.-- (A) Section 78 is amended by striking ``(determined without regard to the phrase ``90 percent of'' in subsection (d)(1) thereof)''. (B) Section 960(d) is amended by striking paragraph (4). (g) Repeal of High Tax Exclusion for Foreign Base Company Income and Insurance Income.-- (1) In general.--Section 954(b) is amended by striking paragraph (4). (2) Conforming amendment.--Section 904(d)(3)(E) is amended by striking the last sentence. (h) Elimination of Carryback of Foreign Tax Credit.-- (1) In general.--Section 904(c) is amended-- (A) by striking ``in the first preceding taxable year, and in any of the first 10 succeeding taxable years, in that order'' and inserting ``in any of the first 10 succeeding taxable years, in order'', (B) by striking ``preceding or'' each place it appears, and (C) by striking ``Carryback and'' in the heading thereof. (2) Application to limitation on foreign oil and gas taxes.--Section 907(f) is amended-- (A) in paragraph (1), by striking ``in the first preceding taxable year and'', (B) in paragraph (2), by striking ``preceding or'' in the matter preceding subparagraph (A), (C) in paragraph (3)(B)-- (i) by striking ``in a preceding or succeeding'' and inserting ``in a succeeding'', and (ii) by striking ``in such preceding or succeeding'' both places it appears and inserting ``in such succeeding'', and (D) in the heading, by striking ``Carryback and''. (i) Treatment of Foreign Base Company Oil Related Income as Subpart F Income.-- (1) In general.--Section 954(a) is amended by striking ``and'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``, and'', and by adding at the end the following new paragraph: ``(4) the foreign base company oil related income for the taxable year (determined under subsection (f) and reduced as provided in subsection (b)(5)).''. (2) Foreign base company oil related income.--Section 954 is amended by inserting after subsection (e) the following new subsection: ``(f) Foreign Base Company Oil Related Income.--For purposes of this section, the term `foreign base company oil related income' means foreign oil related income (within the meaning of paragraphs (2) and (3) of section 907(c)) other than income derived from a source within a foreign country in connection with-- ``(1) oil or gas which was extracted from an oil or gas well located in such foreign country, or ``(2) oil, gas, or a primary product of oil or gas which is sold by the foreign corporation or a related person for use or consumption within such country or is loaded in such co