HR 5125 · 114th Congress 2015–2017, ended

Corporate EXIT Fairness Act

Introduced Apr 29, 2016 Originated House Sponsor Lloyd Doggett D-TX

Fact sheet Spreadsheet

Latest action · Apr 29, 2016 Referred to the House Committee on Ways and Means.

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

  1. IntroducedApr 29, 2016
  2. Passed HouseNot reached
  3. Passed SenateNot reached
  4. To the PresidentNot reached
  5. Became lawNot reached

Summary

Corporate EXpatriates and Inverters Tax Fairness Act or the Corporate EXIT Fairness Act

This bill amends the Internal Revenue Code to set forth rules governing corporate inversions (i.e., the practice of relocating a domestic corporation's legal domicile to a lower-tax nation while retaining its business activities in the higher-tax country of origin) and corporate expatriations. Specifically, the bill requires payment of tax on the deferred overseas profits of U.S. multinational corporations or partnerships before they reincorporate or organize in a foreign country. Additionally, any stock of a controlled foreign corporation in connection with a corporate expatriation would be treated as sold for its fair market value as of the date of expatriation and be subject to U.S. taxation.

The bill expands the definitions of "corporate inversion" and "corporate expatriation" and revises rules relating to the taxation of inverted corporations. A foreign corporation that acquires the assets of a U.S. corporation or partnership after April 29, 2016, shall be treated as an inverted corporation and thus subject to U.S. taxation if, after such acquisition: (1) the expanded affiliated group which includes the foreign corporation does not have substantial business activities in the foreign country in which the corporation is created or organized, when compared to the total business activities of such expanded affiliated group; and (2) more than 50% of the foreign corporation is held by former shareholders or partners of the domestic corporation or partnership, or the management or control of the expanded affiliated group occurs primarily within the United States, and such expanded affiliated group has significant domestic business activities.

Cosponsors 49

Members who signed on, in the order they did. Signatures ran from Apr 29, 2016 to Jun 9, 2016; 47 are original cosponsors, there from the day it was introduced.

SeatCosponsorSigned on
D-FLAlcee L. HastingsOriginalApr 29, 2016
D-CABarbara LeeOriginalApr 29, 2016
D-NJBill Pascrell, Jr.OriginalApr 29, 2016
D-ILBobby L. RushOriginalApr 29, 2016
D-CABrad ShermanOriginalApr 29, 2016
D-NYCharles B. RangelOriginalApr 29, 2016
D-MDChris Van HollenOriginalApr 29, 2016
D-ILDaniel LipinskiOriginalApr 29, 2016
D-MIDaniel T. KildeeOriginalApr 29, 2016
D-ILDanny K. DavisOriginalApr 29, 2016
D-IADavid LoebsackOriginalApr 29, 2016
D-RIDavid N. CicillineOriginalApr 29, 2016
D-NJDonald M. Payne, Jr.OriginalApr 29, 2016
D-OREarl BlumenauerOriginalApr 29, 2016
D-COEd PerlmutterOriginalApr 29, 2016
D-TXEddie Bernice JohnsonOriginalApr 29, 2016
D-MDElijah E. CummingsOriginalApr 29, 2016
D-TXGene GreenOriginalApr 29, 2016
D-WIGwen MooreOriginalApr 29, 2016
D-GAHenry C. "Hank" Johnson, Jr.OriginalApr 29, 2016
D-MAJames P. McGovernOriginalApr 29, 2016
D-ILJanice D. SchakowskyOriginalApr 29, 2016
D-NYJerrold NadlerOriginalApr 29, 2016
D-WAJim McDermottOriginalApr 29, 2016
D-KYJohn A. YarmuthOriginalApr 29, 2016
D-MIJohn Conyers, Jr.OriginalApr 29, 2016
D-CAJohn GaramendiOriginalApr 29, 2016
D-GAJohn LewisOriginalApr 29, 2016
D-CAKaren BassOriginalApr 29, 2016
D-MNKeith EllisonOriginalApr 29, 2016
D-NYLouise McIntosh SlaughterOriginalApr 29, 2016
D-CALucille Roybal-AllardOriginalApr 29, 2016
D-ILLuis V. GutierrezOriginalApr 29, 2016
D-WIMark PocanOriginalApr 29, 2016
D-PAMatt CartwrightOriginalApr 29, 2016
D-MAMichael E. CapuanoOriginalApr 29, 2016
D-CAMike ThompsonOriginalApr 29, 2016
D-NYPaul TonkoOriginalApr 29, 2016
D-ORPeter A. DeFazioOriginalApr 29, 2016
D-VTPeter WelchOriginalApr 29, 2016
D-AZRaúl M. GrijalvaOriginalApr 29, 2016
D-VARobert C. "Bobby" ScottOriginalApr 29, 2016
D-CTRosa L. DeLauroOriginalApr 29, 2016
D-CASam FarrOriginalApr 29, 2016
D-MISander M. LevinOriginalApr 29, 2016
D-MAStephen F. LynchOriginalApr 29, 2016
D-TNSteve CohenOriginalApr 29, 2016
D-DCEleanor Holmes NortonJun 9, 2016
D-CAJared HuffmanJun 9, 2016

Committees 1

Where it was sent and what each committee and subcommittee did with it, in order.

ChamberCommitteeWhat it did
HouseWays and Means Committee
Referred Apr 29, 2016

Actions 2

Everything that happened, newest first.

  1. Apr 29, 2016Introduced in House
  2. Apr 29, 2016Referred to the House Committee on Ways and Means.

Research

What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.

Constitutional authority

Congress has the power to enact this legislation pursuant to the following: Clause 1 of Section 8 of Article I of the United States Constitution.

The sponsor’s statement, as printed in the Congressional Record, vol. 162, no. 67, April 29, 2016, page H2150.

Related bills 3

Companion bills and other measures the record links to this one.

BillTitleRelationshipLatest action
S 198Stop Corporate Inversions Act of 2015Related billJan 20, 2015
HR 415Stop Corporate Inversions Act of 2015Related billJan 20, 2015
HR 1931Corporate EXIT Fairness ActReintroduced BillApr 5, 2017

Titles 3

Every title it has carried, official and short, at each stage.

Official Title as Introduced
To amend the Internal Revenue Code of 1986 to discourage corporate inversions and to impose tax on unrepatriated earnings and unrecognized gains in connection with corporate expatriations.
Short Titles as Introduced
Corporate EXIT Fairness Act
Corporate EXpatriates and Inverters Tax Fairness Act

Subjects

Assigned by the Library of Congress. Policy area: Taxation.

Text 1

Each version as it was printed, newest first.

  1. Apr 29, 2016Introduced in House

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Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.