H.R. 6152: The Bring Jobs Home Act

Tax Credits for “Insourcing” Jobs

The bill creates a new tax credit to provide an incentive for U.S. companies to move jobs from overseas back to America. Specifically, the initiative will allow companies to qualify for a tax credit equal to 20% of the cost associated with bringing jobs and business activity back to the United States.

Closing Tax Loopholes for Companies That Outsource American Jobs

The Bring Jobs Home Act ends a tax deduction for companies that outsource jobs and business activity. Right now, the cost of moving personnel and components of a company to a new location is defined as a business expense that qualifies for a tax deduction.

Treatment of Securities of a Controlled Corporation Exchanged for Assets in Certain Reorganizations.  

Under present law, taxes are generally imposed on parent corporations where they extract value in excess of basis from their subsidiaries prior to engaging in a tax-free spin-off transaction.  Therefore, if a subsidiary corporation distributes cash or other property to its parent in excess of the parent’s basis in the subsidiary or if a subsidiary corporation assumes parent debt in excess of the parent’s basis in the subsidiary, the parent corporation will recognize gain.  However, taxes are not assessed if a subsidiary corporation distributes its own debt securities to a parent corporation prior to a spin off transaction even where the value of these securities would exceed the parent corporation’s basis in its subsidiary.  The bill would treat distributions of debt securities in a tax-free spin-off transaction in the same manner as distributions of cash or other property. 

Press Release: Ways and Means Democrats Introduce H.R. 6152: The Bring Jobs Home Act