House Ways and Means Committee Chairman Sander M. Levin announced that the bill, known as the Investing in America and Closing Tax Loopholes Act of 2010, is part of the Democrats' agenda to stop companies from "shipping jobs overseas" and exploiting loopholes in the international tax rules that help them to skirt their US tax obligations.

“This legislation reaffirms our commitment to creating jobs in America and closing loopholes that encourage companies to ship jobs and investments overseas,” Levin said.

The bill includes a package of provisions developed jointly by the Treasury Department, the Committee on Ways and Means and the Senate Finance Committee, and, according to a summary of the bill, would "curtail abuses of the US foreign tax credit system and other targeted abuses."

"This system is intended to ensure that US-based multinational companies are not subject to double taxation," stated the summary of the legislative text. "However, taxpayers have taken advantage of the US foreign tax credit system to reduce the US tax due on completely unrelated foreign income in a manner that has nothing to do with eliminating double taxation."

It is estimated that the loophole closers will raise an additional USD11.6bn in revenues.

The proposed legislation, supposedly revenue neutral, would also extend for one year the Emergency Fund for Job Creation and Assistance program which currently helps states meet increased need for assistance among low-income families and establish or expand jobs programs.

The bill also proposes to extend for two years the Build America Bonds program which has helped finance more than USD106bn in domestic infrastructure improvements, according to the Ways and Means Committee.

"Experts have deemed these bonds, which helped support nearly two million jobs, to be one of the most successful recovery efforts in place," Levin said.