Amendment to the Amendment in the Nature of a Substitute to H.R. 1 Offered by Mr. Brady of Texas The amendment makes improvements to the amendment in the nature of a substitute relating to the exclusion from income for employer-provided dependent care assistance, protects the integrity of the Earned Income Tax Credit program, focuses the excise tax on net investment income of educational institutions on application to institutions with endowment assets of at least $250,000 per student, ensures that other changes in the bill do not disturb the characterization for tax purposes of income earned by songwriters when they sell their catalogue of compositions, ensures that employees of start-up companies can share in the success of the business they are helping to build by better aligning the recognition of stock-based compensation for tax purposes, imposes an additional holding period requirement with respect to gains on a carried interest, and better tailors the bill's international base erosion rules. G:\M\15\BRADTX\BRADTX_047.XML AMENDMENT NATURE TO THE OF A OFFERED BY AMENDMENT SUBSTITUTE MR. BRADY TO OF IN THE H.R. 1 TEXAS In section 1005(a), redesignate paragraphs (1) through (37) as paragraphs (3) through (39), respectively, and insert before such paragraph (3) (as so redesignated) the following: 1 (1) Section 32(b)(2)(B)(ii)(II) is amended by 2 striking ‘‘ section 1(f)(3) for the calendar year in 3 which the taxable year begins determined by sub- 4 stituting ‘calendar year 2008’ for ‘calendar year 5 1992’ in subparagraph (B) thereof’’ and inserting 6 ‘‘section 1(c)(2)(A) for the calendar year in which 7 the taxable year begins determined by substituting 8 ‘calendar year 2008’ for ‘calendar year 2016’ in 9 clause (ii) thereof’’. 10 (2) Section 32(j)(1)(B) is amended— 11 (A) in the matter preceding clause (i), by 12 striking ‘‘section 1(f)(3)’’ and inserting ‘‘section 13 1(c)(2)(A)’’, 14 (B) in clause (i), by striking ‘‘for ‘calendar 15 year 1992’ in subparagraph (B) thereof’’ and g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 2 1 inserting ‘‘for ‘calendar year 2016’ in clause (ii) 2 thereof’’, and 3 (C) in clause (ii), by striking ‘‘for ‘calendar 4 year 1992’ in subparagraph (B) of such section 5 1’’ and inserting ‘‘for ‘calendar year 2016’ in 6 clause (ii) thereof’’. Page 76, after line 20, insert the following: 7 SEC. 1104. PROCEDURES TO REDUCE IMPROPER CLAIMS 8 OF EARNED INCOME CREDIT. 9 (a) CLARIFICATION REGARDING DETERMINATION 10 SELF-EMPLOYMENT INCOME WHICH IS TREATED OF AS 11 EARNED INCOME.—Section 32(c)(2)(B) is amended by 12 striking ‘‘and’’ at the end of clause (v), by striking the 13 period at the end of clause (vi) and inserting ‘‘, and’’, and 14 by adding at the end the following new clause: 15 ‘‘(vii) in determining the taxpayer’s 16 net earnings from self-employment under 17 subparagraph (A)(ii) there shall not fail to 18 be taken into account any deduction which 19 is allowable to the taxpayer under this sub- 20 title.’’. 21 22 (b) REQUIRED QUARTERLY REPORTING OF OF WAGES EMPLOYEES.—Section 6011 is amended by adding at 23 the end the following new subsection: g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 3 1 ‘‘(i) EMPLOYER REPORTING OF WAGES.—Every per- 2 son required to deduct and withhold from an employee a 3 tax under section 3101 or 3402 shall include on each re4 turn or statement submitted with respect to such tax, the 5 name and address of such employee and the amount of 6 wages for such employee on which such tax was with7 held.’’. 8 (c) EFFECTIVE DATE.— 9 (1) IN GENERAL.—Except as provided in para- 10 graph (2), the amendments made by this section 11 shall apply to taxable years ending after the date of 12 the enactment of this Act. 13 (2) REPORTING.—The Secretary of the Treas- 14 ury, or his designee, may delay the application of the 15 amendment made by subsection (b) for such period 16 as such Secretary (or designee) determines to be 17 reasonable to allow persons adequate time to modify 18 electronic (or other) systems to permit such person 19 to comply with the requirements of such amend- 20 ment. 21 SEC. 1105. CERTAIN INCOME DISALLOWED FOR PURPOSES 22 OF THE EARNED INCOME TAX CREDIT. 23 (a) SUBSTANTIATION REQUIREMENT.—Section 32 is 24 amended by adding at the end the following new sub25 section: g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 4 1 ‘‘(n) INCONSISTENT INCOME REPORTING.—If the 2 earned income of a taxpayer claimed on a return for pur3 poses of this section is not substantiated by statements 4 or returns under sections 6051, 6052, 6041(a), or 6050W 5 with respect to such taxpayer, the Secretary may require 6 such taxpayer to provide books and records to substantiate 7 such income, including for the purpose of preventing 8 fraud.’’. 9 (b) EXCLUSION OF UNSUBSTANTIATED AMOUNT 10 FROM EARNED INCOME.—Section 32(c)(2) is amended by 11 adding at the end the following new subparagraph: 12 ‘‘(C) EXCLUSION.—In the case of a tax- 13 payer with respect to which there is an incon- 14 sistency described in subsection (n) who fails to 15 substantiate such inconsistency to the satisfac- 16 tion of the Secretary, the term ‘earned income’ 17 shall not include amounts to the extent of such 18 inconsistency.’’. 19 (c) EFFECTIVE DATE.—The amendments made by 20 this section shall apply to taxable years ending after the 21 date of the enactment of this Act. Page 138, strike line 19, and all that follows through page 139, line 24, and insert the following: g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 5 1 SEC. 1404. SUNSET OF EXCLUSION FOR DEPENDENT CARE 2 3 ASSISTANCE PROGRAMS. (a) IN GENERAL.—Section 129 is amended by adding 4 at the end the following new subsection: 5 ‘‘(f) TERMINATION.—Subsection (a) shall not apply 6 to taxable years beginning after December 31, 2022.’’. 7 (b) EFFECTIVE DATE.—The amendment made by 8 this section shall take effect on the date of the enactment 9 of this Act. Page 246, strike lines 7 through 20, and insert the following: 10 (b) CONFORMING AMENDMENT.—Section 11 1231(b)(1)(C) is amended by inserting ‘‘a patent, inven12 tion, model or design (whether or not patented), a secret 13 formula or process,’’ before ‘‘a copyright’’. 14 (c) EFFECTIVE DATE.—The amendments made by 15 this section shall apply to dispositions after December 31, 16 2017. Page 248, after line 3, insert the following: g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 6 1 SEC. 3314. RECHARACTERIZATION OF CERTAIN GAINS IN 2 THE CASE OF PARTNERSHIP PROFITS INTER- 3 ESTS HELD IN CONNECTION WITH PERFORM- 4 ANCE OF INVESTMENT SERVICES. 5 (a) IN GENERAL.—Part IV of subchapter O of chap- 6 ter 1 is amended— 7 (1) by redesignating section 1061 as section 8 1062, and 9 (2) by inserting after section 1060 the following 10 11 new section: ‘‘SEC. 1061. PARTNERSHIP INTERESTS HELD IN CONNEC- 12 13 TION WITH PERFORMANCE OF SERVICES. ‘‘(a) IN GENERAL.—If one or more applicable part- 14 nership interests are held by a taxpayer at any time during 15 the taxable year, the excess (if any) of— 16 ‘‘(1) the taxpayer’s net long-term capital gain 17 with respect to such interests for such taxable year, 18 over 19 ‘‘(2) the taxpayer’s net long-term capital gain 20 with respect to such interests for such taxable year 21 computed by applying paragraphs (3) and (4) of sec- 22 tions 1222 by substituting ‘3 years’ for ‘1 year’, 23 shall be treated as short-term capital gain. 24 ‘‘(b) SPECIAL RULE.—To the extent provided by the 25 Secretary, subsection (a) shall not apply to income or gain g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 7 1 attributable to any asset not held for portfolio investment 2 on behalf of third party investors. 3 ‘‘(c) APPLICABLE PARTNERSHIP INTEREST.—For 4 purposes of this section— 5 ‘‘(1) IN as provided in this 6 paragraph or paragraph (4), the term ‘applicable 7 partnership interest’ means any interest in a part- 8 nership which, directly or indirectly, is transferred to 9 (or is held by) the taxpayer in connection with the 10 performance of substantial services by the taxpayer, 11 or any other related person, in any applicable trade 12 or business. The previous sentence shall not apply to 13 an interest held by a person who is employed by an- 14 other entity that is conducting a trade or business 15 (other than an applicable trade or business) and 16 only provides services to such other entity. 17 ‘‘(2) APPLICABLE TRADE OR BUSINESS.—The 18 term ‘applicable trade or business’ means any activ- 19 ity conducted on a regular, continuous, and substan- 20 tial basis which, regardless of whether the activity is 21 conducted in one or more entities, consists, in whole 22 or in part, of— 23 ‘‘(A) raising or returning capital, and 24 ‘‘(B) either— g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 GENERAL.—Except 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 8 1 ‘‘(i) investing in (or disposing of) 2 specified assets (or identifying specified as- 3 sets for such investing or disposition), or 4 ‘‘(ii) developing specified assets. 5 ‘‘(3) SPECIFIED term ‘specified 6 asset’ means securities (as defined in section 7 475(c)(2) without regard to the last sentence there- 8 of), commodities (as defined in section 475(e)(2)), 9 real estate held for rental or investment, cash or 10 cash equivalents, options or derivative contracts with 11 respect to any of the foregoing, and an interest in 12 a partnership to the extent of the partnership’s pro- 13 portionate interest in any of the foregoing. 14 15 ‘‘(4) EXCEPTIONS.—The term ‘applicable partnership interest’ shall not include— 16 ‘‘(A) any interest in a partnership directly 17 or indirectly held by a corporation, or 18 ‘‘(B) any capital interest in the partner- 19 ship which provides the taxpayer with a right to 20 share in partnership capital commensurate 21 with— 22 ‘‘(i) the amount of capital contributed 23 (determined at the time of receipt of such 24 partnership interest), or g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 ASSET.—The 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 9 1 ‘‘(ii) the value of such interest subject 2 to tax under section 83 upon the receipt or 3 vesting of such interest. 4 ‘‘(5) THIRD 5 term ‘third party investor’ means a person who— 6 ‘‘(A) holds an interest in the partnership 7 which does not constitute property held in con- 8 nection with an applicable trade or business; 9 and 10 ‘‘(B) is not (and has not been) actively en- 11 gaged, and is (and was) not related to a person 12 so engaged, in (directly or indirectly) providing 13 substantial services described in paragraph (1) 14 for such partnership or any applicable trade or 15 business. 16 17 ‘‘(d) TRANSFER TEREST TO 18 OF APPLICABLE PARTNERSHIP IN- RELATED PERSON.— ‘‘(1) IN GENERAL.—If a taxpayer transfers any 19 applicable partnership interest, directly or indirectly, 20 to a person related to the taxpayer, the taxpayer 21 shall include in gross income (as short term capital 22 gain) the excess (if any) of— 23 ‘‘(A) so much of the taxpayer’s long-term 24 capital gains with respect to such interest for 25 such taxable year attributable to the sale or ex- g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 PARTY INVESTOR.—The 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 10 1 change of any asset held for not more than 3 2 years as is allocable to such interest, over 3 ‘‘(B) any amount treated as short term 4 capital gain under subsection (a) with respect 5 to the transfer of such interest. 6 ‘‘(2) RELATED PERSON.—For purposes of this 7 paragraph, a person is related to the taxpayer if— 8 ‘‘(A) the person is a member of the tax- 9 payer’s family within the meaning of section 10 318(a)(1), or 11 ‘‘(B) the person performed a service within 12 the current calendar year or the preceding three 13 calendar years in any applicable trade or busi- 14 ness in which or for which the taxpayer per- 15 formed a service. 16 ‘‘(e) REPORTING.—The Secretary shall require such 17 reporting (at the time and in the manner prescribed by 18 the Secretary) as is necessary to carry out the purposes 19 of this section. 20 ‘‘(f) REGULATIONS.—The Secretary shall issue such 21 regulations or other guidance as is necessary or appro22 priate to carry out the purposes of this section’’. 23 (b) COORDINATION WITH SECTION 83.—Subsection 24 (e) of section 83 is amended by striking ‘‘or’’ at the end 25 of paragraph (4), by striking the period at the end of para- g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 11 1 graph (5) and inserting ‘‘, or’’, and by adding at the end 2 the following new paragraph: 3 ‘‘(6) a transfer of an applicable partnership in- 4 terest to which section 1061 applies.’’. 5 (c) CLERICAL AMENDMENT.—The table of sections 6 for part IV of subchapter O of chapter 1 is amended by 7 striking the item relating to 1061 and inserting the fol8 lowing new items: ‘‘Sec. 1061. Partnership interests held in connection with performance of services. ‘‘Sec. 1062. Cross references.’’. 9 (d) EFFECTIVE DATE.—The amendments made by 10 this section shall apply to taxable years beginning after 11 December 31, 2017. Page 309, after line 21, insert the following: 12 SEC. 3804. TREATMENT OF QUALIFIED EQUITY GRANTS. 13 (a) IN GENERAL.— 14 (1) ELECTION 83 15 is amended by adding at the end the following new 16 subsection: 17 ‘‘(i) QUALIFIED EQUITY GRANTS.— 18 ‘‘(1) IN GENERAL.—For purposes of this sub- 19 title, if qualified stock is transferred to a qualified 20 employee who makes an election with respect to such 21 stock under this subsection— g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 TO DEFER INCOME.—Section 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 12 1 ‘‘(A) except as provided in subparagraph 2 (B), no amount shall be included in income 3 under subsection (a) for the first taxable year 4 in which the rights of the employee in such 5 stock are transferable or are not subject to a 6 substantial risk of forfeiture, whichever is appli- 7 cable, and 8 ‘‘(B) an amount equal to the amount 9 which would be included in income of the em- 10 ployee under subsection (a) (determined without 11 regard to this subsection) shall be included in 12 income for the taxable year of the employee 13 which includes the earliest of— 14 ‘‘(i) the first date such qualified stock 15 becomes transferable (including transfer- 16 able to the employer), 17 ‘‘(ii) the date the employee first be- 18 comes an excluded employee, 19 ‘‘(iii) the first date on which any stock 20 of the corporation which issued the quali- 21 fied stock becomes readily tradable on an 22 established securities market (as deter- 23 mined by the Secretary, but not including 24 any market unless such market is recog- 25 nized as an established securities market g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 13 1 by the Secretary for purposes of a provi- 2 sion of this title other than this sub- 3 section), 4 ‘‘(iv) the date that is 5 years after the 5 first date the rights of the employee in 6 such stock are transferable or are not sub- 7 ject to a substantial risk of forfeiture, 8 whichever occurs earlier, or 9 ‘‘(v) the date on which the employee 10 revokes (at such time and in such manner 11 as the Secretary may provide) the election 12 under this subsection with respect to such 13 stock. 14 ‘‘(2) QUALIFIED 15 ‘‘(A) IN GENERAL.—For purposes of this 16 subsection, the term ‘qualified stock’ means, 17 with respect to any qualified employee, any 18 stock in a corporation which is the employer of 19 such employee, if— 20 ‘‘(i) such stock is received— 21 ‘‘(I) in connection with the exer- 22 cise of an option, or 23 ‘‘(II) in settlement of a restricted 24 stock unit, and g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 STOCK.— 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 14 1 ‘‘(ii) such option or restricted stock 2 unit was provided by the corporation— 3 ‘‘(I) in connection with the per- 4 formance of services as an employee, 5 and 6 ‘‘(II) during a calendar year in 7 which such corporation was an eligible 8 corporation. 9 ‘‘(B) LIMITATION.—The term ‘qualified 10 stock’ shall not include any stock if the em- 11 ployee may sell such stock to, or otherwise re- 12 ceive cash in lieu of stock from, the corporation 13 at the time that the rights of the employee in 14 such stock first become transferable or not sub- 15 ject to a substantial risk of forfeiture. 16 ‘‘(C) ELIGIBLE 17 pur- poses of subparagraph (A)(ii)(II)— 18 ‘‘(i) IN GENERAL.—The term ‘eligible 19 corporation’ means, with respect to any 20 calendar year, any corporation if— 21 ‘‘(I) no stock of such corporation 22 (or any predecessor of such corpora- 23 tion) is readily tradable on an estab- 24 lished securities market (as deter- 25 mined under paragraph (1)(B)(iii)) g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 CORPORATION.—For 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 15 1 during any preceding calendar year, 2 and 3 ‘‘(II) such corporation has a writ- 4 ten plan under which, in such cal- 5 endar year, not less than 80 percent 6 of all employees who provide services 7 to such corporation in the United 8 States (or any possession of the 9 United States) are granted stock op- 10 tions, or restricted stock units, with 11 the same rights and privileges to re- 12 ceive qualified stock. 13 ‘‘(ii) 14 LEGES.—For RIGHTS AND PRIVI- purposes of clause (i)(II)— 15 ‘‘(I) except as provided in sub- 16 clauses (II) and (III), the determina- 17 tion of rights and privileges with re- 18 spect to stock shall be determined in 19 a similar manner as provided under 20 section 423(b)(5), 21 ‘‘(II) employees shall not fail to 22 be treated as having the same rights 23 and privileges to receive qualified 24 stock solely because the number of 25 shares available to all employees is not g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 SAME 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 16 1 equal in amount, so long as the num- 2 ber of shares available to each em- 3 ployee is more than a de minimis 4 amount, and 5 ‘‘(III) rights and privileges with 6 respect to the exercise of an option 7 shall not be treated as the same as 8 rights and privileges with respect to 9 the settlement of a restricted stock 10 unit. 11 ‘‘(iii) EMPLOYEE.—For purposes of 12 clause (i)(II), the term ‘employee’ shall not 13 include any employee described in section 14 4980E(d)(4) or any excluded employee. 15 ‘‘(iv) SPECIAL 16 YEARS BEFORE 2018.—In 17 calendar year beginning before January 1, 18 2018, clause (i)(II) shall be applied with- 19 out regard to whether the rights and privi- 20 leges with respect to the qualified stock are 21 the same. 22 23 ‘‘(3) QUALIFIED PLOYEE.—For 24 EMPLOYEE; EXCLUDED EM- GENERAL.—The term ‘qualified employee’ means any individual who— g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) 16:37 Nov 06, 2017 the case of any purposes of this subsection— ‘‘(A) IN 25 VerDate 0ct 09 2002 RULE FOR CALENDAR Jkt 000000 (679683 13) PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 17 1 ‘‘(i) is not an excluded employee, and 2 ‘‘(ii) agrees in the election made 3 under this subsection to meet such require- 4 ments as determined by the Secretary to 5 be necessary to ensure that the with- 6 holding requirements of the corporation 7 under chapter 24 with respect to the quali- 8 fied stock are met. 9 ‘‘(B) EXCLUDED term 10 ‘excluded employee’ means, with respect to any 11 corporation, any individual— 12 ‘‘(i) who was a 1-percent owner (with- 13 in the meaning of section 416(i)(1)(B)(ii)) 14 at any time during the 10 preceding cal- 15 endar years, 16 ‘‘(ii) who is or has been at any prior 17 time— 18 ‘‘(I) the chief executive officer of 19 such corporation or an individual act- 20 ing in such a capacity, or 21 ‘‘(II) the chief financial officer of 22 such corporation or an individual act- 23 ing in such a capacity, 24 ‘‘(iii) who bears a relationship de- 25 scribed in section 318(a)(1) to any indi- g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 EMPLOYEE.—The 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 18 1 vidual described in subclause (I) or (II) of 2 clause (ii), or 3 ‘‘(iv) who has been for any of the 10 4 preceding taxable years one of the 4 high- 5 est compensated officers of such corpora- 6 tion determined with respect to each such 7 taxable year on the basis of the share- 8 holder disclosure rules for compensation 9 under the Securities Exchange Act of 1934 10 (as if such rules applied to such corpora- 11 tion). 12 ‘‘(4) ELECTION.— 13 ‘‘(A) TIME 14 election with respect to qualified stock shall be 15 made under this subsection no later than 30 16 days after the first time the rights of the em- 17 ployee in such stock are transferable or are not 18 subject to a substantial risk of forfeiture, 19 whichever occurs earlier, and shall be made in 20 a manner similar to the manner in which an 21 election is made under subsection (b). 22 ‘‘(B) LIMITATIONS.—No election may be 23 made under this section with respect to any 24 qualified stock if— g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 FOR MAKING ELECTION.—An 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 19 1 ‘‘(i) the qualified employee has made 2 an election under subsection (b) with re- 3 spect to such qualified stock, 4 ‘‘(ii) any stock of the corporation 5 which issued the qualified stock is readily 6 tradable on an established securities mar- 7 ket 8 (1)(B)(iii)) at any time before the election 9 is made, or determined under paragraph 10 ‘‘(iii) such corporation purchased any 11 of its outstanding stock in the calendar 12 year preceding the calendar year which in- 13 cludes the first time the rights of the em- 14 ployee in such stock are transferable or are 15 not subject to a substantial risk of for- 16 feiture, unless— 17 ‘‘(I) not less than 25 percent of 18 the total dollar amount of the stock so 19 purchased is deferral stock, and 20 ‘‘(II) the determination of which 21 individuals from whom deferral stock 22 is purchased is made on a reasonable 23 basis. g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 (as 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 20 1 ‘‘(C) DEFINITIONS 2 RELATED TO LIMITATION ON STOCK REDEMP- 3 TIONS.— 4 ‘‘(i) DEFERRAL STOCK.—For pur- 5 poses of this paragraph, the term ‘deferral 6 stock’ means stock with respect to which 7 an election is in effect under this sub- 8 section. 9 ‘‘(ii) DEFERRAL STOCK WITH RE- 10 SPECT TO ANY INDIVIDUAL NOT TAKEN 11 INTO ACCOUNT IF INDIVIDUAL HOLDS DE- 12 FERRAL STOCK WITH LONGER DEFERRAL 13 PERIOD.—Stock 14 tion from any individual shall not be treat- 15 ed as deferral stock for purposes of clause 16 (iii) if such individual (immediately after 17 such purchase) holds any deferral stock 18 with respect to which an election has been 19 in effect under this subsection for a longer 20 period than the election with respect to the 21 stock so purchased. purchased by a corpora- 22 ‘‘(iii) PURCHASE 23 STANDING DEFERRAL 24 quirements of subclauses (I) and (II) of 25 subparagraph (B)(iii) shall be treated as g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 AND SPECIAL RULES 16:37 Nov 06, 2017 Jkt 000000 OF ALL STOCK.—The OUT- re- (679683 13) PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 21 1 met if the stock so purchased includes all 2 of the corporation’s outstanding deferral 3 stock. 4 ‘‘(iv) REPORTING.—Any corporation 5 which has outstanding deferral stock as of 6 the beginning of any calendar year and 7 which purchases any of its outstanding 8 stock during such calendar year shall in- 9 clude on its return of tax for the taxable 10 year in which, or with which, such calendar 11 year ends the total dollar amount of its 12 outstanding stock so purchased during 13 such calendar year and such other infor- 14 mation as the Secretary may require for 15 purposes of administering this paragraph. 16 ‘‘(5) CONTROLLED purposes of 17 this subsection, all corporations which are members 18 of the same controlled group of corporations (as de- 19 fined in section 1563(a)) shall be treated as one cor- 20 poration. 21 ‘‘(6) NOTICE REQUIREMENT.—Any corporation 22 that transfers qualified stock to a qualified employee 23 shall, at the time that (or a reasonable period be- 24 fore) an amount attributable to such stock would g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 GROUPS.—For 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 22 1 (but for this subsection) first be includible in the 2 gross income of such employee— 3 ‘‘(A) certify to such employee that such 4 stock is qualified stock, and 5 ‘‘(B) notify such employee— 6 ‘‘(i) that the employee may elect to 7 defer income on such stock under this sub- 8 section, and 9 ‘‘(ii) that, if the employee makes such 10 an election— 11 ‘‘(I) the amount of income recog- 12 nized at the end of the deferral period 13 will be based on the value of the stock 14 at the time at which the rights of the 15 employee in such stock first become 16 transferable or not subject to substan- 17 tial risk of forfeiture, notwithstanding 18 whether the value of the stock has de- 19 clined during the deferral period, 20 ‘‘(II) the amount of such income 21 recognized at the end of the deferral 22 period will be subject to withholding 23 under section 3401(i) at the rate de- 24 termined under section 3402(t), and g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 23 1 ‘‘(III) the responsibilities of the 2 employee (as determined by the Sec- 3 retary under paragraph (3)(A)(ii)) 4 with respect to such withholding.’’. 5 (2) DEDUCTION BY EMPLOYER.—Subsection (h) 6 of section 83 is amended by striking ‘‘or (d)(2)’’ and 7 inserting ‘‘(d)(2), or (i)’’. 8 (b) WITHHOLDING.— 9 (1) TIME OF WITHHOLDING.—Section 3401 is 10 amended by adding at the end the following new 11 subsection: 12 ‘‘(i) QUALIFIED STOCK 13 IN FOR WHICH AN ELECTION IS EFFECT UNDER SECTION 83(i).—For purposes of sub- 14 section (a), qualified stock (as defined in section 83(i)) 15 with respect to which an election is made under section 16 83(i) shall be treated as wages— 17 18 ‘‘(1) received on the earliest date described in section 83(i)(1)(B), and 19 ‘‘(2) in an amount equal to the amount in- 20 cluded in income under section 83 for the taxable 21 year which includes such date.’’. 22 (2) AMOUNT 3402 23 is amended by adding at the end the following new 24 subsection: g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 OF WITHHOLDING.—Section 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 24 1 ‘‘(t) RATE OF WITHHOLDING CERTAIN FOR 2 STOCK.—In the case of any qualified stock (as defined in 3 section 83(i)) with respect to which an election is made 4 under section 83(i)— 5 ‘‘(1) the rate of tax under subsection (a) shall 6 not be less than the maximum rate of tax in effect 7 under section 1, and 8 ‘‘(2) such stock shall be treated for purposes of 9 section 3501(b) in the same manner as a non-cash 10 fringe benefit.’’. 11 (c) COORDINATION WITH OTHER DEFERRED COM- 12 PENSATION 13 14 RULES.— (1) ELECTION TORY OPTIONS.— 15 (A) INCENTIVE STOCK OPTIONS.—Section 16 422(b) is amended by adding at the end the fol- 17 lowing: ‘‘Such term shall not include any option 18 if an election is made under section 83(i) with 19 respect to the stock received in connection with 20 the exercise of such option.’’. 21 (B) EMPLOYEE STOCK PURCHASE 22 PLANS.—Section 23 at the end the following flush sentence: g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 TO APPLY DEFERRAL TO STATU- 16:37 Nov 06, 2017 Jkt 000000 423(a) is amended by adding (679683 13) PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 25 1 ‘‘The preceding sentence shall not apply to any share of 2 stock with respect to which an election is made under sec3 tion 83(i).’’. 4 (2) EXCLUSION FROM DEFINITION OF NON- 5 QUALIFIED DEFERRED COMPENSATION PLAN.—Sec- 6 tion 409B(b), as added by this Act, is amended by 7 adding at the end the following new paragraph: 8 ‘‘(8) TREATMENT OF QUALIFIED STOCK.—An 9 arrangement under which an employee may receive 10 qualified stock (as defined in section 83(i)(2)) shall 11 not be treated as a nonqualified deferred compensa- 12 tion plan.’’. 13 (d) INFORMATION REPORTING.—Section 6051(a) is 14 amended by striking ‘‘and’’ at the end of paragraph (13), 15 by striking the period at the end of paragraph (14) and 16 inserting a comma, and by inserting after paragraph (14) 17 the following new paragraphs: 18 19 ‘‘(15) the amount excludable from gross income under subparagraph (A) of section 83(i)(1), 20 ‘‘(16) the amount includible in gross income 21 under subparagraph (B) of section 83(i)(1) with re- 22 spect to an event described in such subparagraph 23 which occurs in such calendar year, and 24 ‘‘(17) the aggregate amount of income which is 25 being deferred pursuant to elections under section g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 26 1 83(i), determined as of the close of the calendar 2 year.’’. 3 (e) PENALTY 4 NOTICE VIDE OF FOR FAILURE OF EMPLOYER TO PRO- TAX CONSEQUENCES.—Section 6652 is 5 amended by adding at the end the following new sub6 section: 7 ‘‘(o) FAILURE TO PROVIDE NOTICE UNDER SECTION 8 83(i).—In the case of each failure to provide a notice as 9 required by section 83(i)(6), at the time prescribed there10 for, unless it is shown that such failure is due to reason11 able cause and not to willful neglect, there shall be paid, 12 on notice and demand of the Secretary and in the same 13 manner as tax, by the person failing to provide such no14 tice, an amount equal to $100 for each such failure, but 15 the total amount imposed on such person for all such fail16 ures during any calendar year shall not exceed $50,000.’’. 17 (f) EFFECTIVE DATES.— 18 (1) IN as provided in para- 19 graph (2), the amendments made by this section 20 shall apply to stock attributable to options exercised, 21 or restricted stock units settled, after December 31, 22 2017. 23 (2) REQUIREMENT TO PROVIDE NOTICE.—The 24 amendments made by subsection (e) shall apply to 25 failures after December 31, 2017. g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 GENERAL.—Except 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 27 1 (g) TRANSITION RULE.—Until such time as the Sec- 2 retary (or the Secretary’s delegate) issue regulations or 3 other guidance for purposes of implementing the require4 ments of paragraph (2)(C)(i)(II) of section 83(i) of the 5 Internal Revenue Code of 1986 (as added by this section), 6 or the requirements of paragraph (6) of such section, a 7 corporation shall be treated as being in compliance with 8 such requirements (respectively) if such corporation com9 plies with a reasonable good faith interpretation of such 10 requirements. Page 344, strike lines 9 through 12, and insert the following: 11 ‘‘(4) COORDINATION 12 respect to the taxes treated as paid or accrued by a 13 domestic corporation with respect to amounts which 14 are includible in gross income of such domestic cor- 15 poration by reason of this section, section 78 shall 16 apply only to so much of such taxes as bears the 17 same proportion to the amount of such taxes as— 18 ‘‘(A) the excess of— 19 ‘‘(i) the amounts which are includible 20 in gross income of such domestic corpora- 21 tion by reason of this section, over g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 WITH SECTION 78.—With 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 28 1 ‘‘(ii) the deduction allowable under 2 subsection 3 amounts, bears to 4 ‘‘(B) such amounts.’’. (c) with respect to such Page 372, line 12, strike ‘‘subsection (h) or (i)’’ and insert ‘‘subsection (c)(2)(C), (h), or (i)’’. Page 376, strike lines 3 through 7, and insert the following: 5 ‘‘(1) COMMODITIES GROSS INCOME.—The term 6 ‘commodities gross income’ means, with respect to 7 any corporation— 8 ‘‘(A) gross income of such corporation 9 from the disposition of commodities which are 10 produced or extracted by such corporation (or a 11 partnership in which such corporation is a part- 12 ner), and 13 ‘‘(B) gross income of such corporation 14 from the disposition of property which gives rise 15 to income described in subparagraph (A).’’. Page 398, strike lines 7 through 10, and insert the following: 16 ‘‘(C) the foreign corporation shall be al- 17 lowed a deduction for the taxable year referred g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 29 1 to in subparagraph (A) equal to the product 2 of— 3 ‘‘(i) the sum of 104 percent plus the 4 annual Federal short-term rate (deter- 5 mined under section 1274(d)) for the last 6 month ending before the beginning of the 7 taxable year, multiplied by 8 ‘‘(ii) the deemed expenses with respect 9 to such amount.’’. Page 398, strike lines 21 through 25, and insert the following: 10 ‘‘(ii) any amount paid or incurred for 11 the acquisition of any security described in 12 section 475(c)(2) or any commodity de- 13 scribed in section 475(e)(2),’’. Page 399, strike lines 10 through 14 and insert the following: 14 ‘‘(C) AMOUNTS NOT TREATED AS EFFEC- 15 TIVELY CONNECTED TO EXTENT OF GROSS- 16 BASIS TAX.—Subparagraph 17 apply to so much of any specified amount as 18 bears the proportion to such amount as—’’. (B)(iii) shall only Page 400, line 1, insert ‘‘such specified amount and’’ before ‘‘deemed expenses’’. g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00029 Fmt 6652 Sfmt 6301 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 30 Page 400, strike lines 13 through 19, and insert the following: 1 ‘‘(C) METHOD OF DETERMINATION.— 2 Amounts described in subparagraph (B) shall 3 be determined with respect to the international 4 financial reporting group on the basis of the 5 consolidated financial statements referred to in 6 paragraph (4)(A)(i) and the books and records 7 of the members of the international financial 8 reporting group which are used in preparing 9 such statements, taking into account only reve- 10 nues and expenses of the members of such 11 group (other than the members of such group 12 which are treated as domestic for purposes of 13 this subsection) derived from, or incurred with 14 respect to— 15 ‘‘(i) persons who are not members of 16 such group, and 17 ‘‘(ii) members of such group which 18 are treated as a domestic corporation for 19 purposes of this subsection.’’. Page 403, strike line 20 and all that follows through page 404, line 9, and insert the following: 20 ‘‘(8) TREATMENT g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 OF FOREIGN TAXES.— (679683 13) PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 31 1 ‘‘(A) ALLOWANCE CREDIT.—In the 2 case of any foreign corporation which receives 3 specified amounts to which paragraph (1) ap- 4 plies during any taxable year, there shall be al- 5 lowed as a credit against the tax imposed by 6 this chapter for such taxable year an amount 7 equal to the product of— 8 ‘‘(i) the excess (if any) of— 9 ‘‘(I) the aggregate specified 10 amounts received by such foreign cor- 11 poration to which paragraph (1) ap- 12 plies for such taxable year, over 13 ‘‘(II) the aggregate amount of 14 deductions allowed under paragraph 15 (1)(C) with respect to such foreign 16 corporation for such taxable year, 17 multiplied by 18 ‘‘(ii) the lesser of— 19 ‘‘(I) 50 percent of the inter- 20 national financial reporting group’s 21 effective foreign tax rate for the re- 22 porting year during which or with 23 which such taxable year ends, or 24 ‘‘(II) 20 percent. g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 OF 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 32 1 ‘‘(B) DISALLOWANCE FOREIGN TAX 2 CREDIT.—No 3 tion 901 for any taxes paid or accrued (or 4 treated as paid or accrued) with respect to any 5 specified amount to which paragraph (1) ap- 6 plies. 7 credit shall be allowed under sec- ‘‘(C) DENIAL OF DEDUCTION.—No deduc- 8 tion shall be allowed under this chapter for any 9 tax for which credit is not allowable under sec- 10 tion 901 by reason of subparagraph (B) (deter- 11 mined by treating the taxpayer as having elect- 12 ed the benefits of subpart A of part III of sub- 13 chapter N). 14 ‘‘(D) EFFECTIVE FOREIGN TAX RATE.— 15 For purposes of this paragraph, the term ‘effec- 16 tive foreign tax rate’ means, with respect to any 17 reporting year of any international financial re- 18 porting group, the ratio (expressed as a per- 19 centage and not less than zero) of— 20 ‘‘(i) the foreign income taxes paid by 21 the international financial reporting group 22 during such reporting year, divided by 23 ‘‘(ii) the net income of the inter- 24 national financial reporting group deter- g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 OF 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X G:\M\15\BRADTX\BRADTX_047.XML 33 1 mined without regard to interest income, 2 interest expense, and income taxes. 3 Amounts described in this subparagraph shall 4 be determined as provided in paragraph (3)(C). 5 ‘‘(E) FOREIGN INCOME TAXES.—For pur- 6 poses of this paragraph, the term ‘foreign in- 7 come taxes’ means any income, war profits, or 8 excess profits taxes paid to any foreign country 9 or possession of the United States.’’. Page 418, line 12, strike ‘‘$100,000’’ and insert ‘‘$250,000’’. Amend the long title so as to read: ‘‘A bill to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.’’. ◊ g:\VHLC\110617\110617.356.xml November 6, 2017 (4:37 p.m.) VerDate 0ct 09 2002 16:37 Nov 06, 2017 Jkt 000000 (679683 13) PO 00000 Frm 00033 Fmt 6652 Sfmt 6301 C:\USERS\SJPROBST\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\BRADTX~1.X