American corporations have about $2 trillion dollars of cash stashed away overseas, all of which are earnings / profits from their overseas operations. As a political hot button issue, the question is how do we (the US) get companies to bring that money home where it could and arguably should be used to help our economy and more importantly to help out the US government, bring the money home, and the US government gets to tax it, thus bringing in much needed tax revenue. What’s at stake, the 35% tax that would be due by those corporations. Truth be told corporations have many ways to avoid paying taxes while making use of their funds outside the US, it’s not exactly dead money, but it isn’t being put to its best use.
We should be offering a 100% tax holiday for all corporate capital that is returned to the US, no taxes levied whatsoever on repatriated capital, with a simple caveat. 100% tax holiday for all funds that are used for renewable energy, conversion and financing, effectively 100% tax holiday for companies to re-invest in our / their country.
If a corporation brings their cash back in to the US and retrofits their buildings, factories, campus with solar PV and spends $30 million doing so, no tax on that $30 million. The corporation can of course choose how much cash they wish to bring back to the US, but lets make it worth their while, not only do they not pay taxes on their earnings, but we’re also incentivizing them to invest in energy savings and upgrades that will positively impact their bottom line. Going one step further if they invest their cash into renewable energy bonds that other organizations can then borrow against and use to retrofit their facilities, campuses et cetera with renewables, no tax on the cash repatriated and invested in the bond fund.