Finance executives already bedeviled by the requirements of Sarbanes-Oxley's Section 404 saw their to-do lists get even longer in October, when Congress passed the America Jobs Creation Act. One of the biggest challenges near-term is the law's repatriation provision, which gives companies a way to bring earnings back from overseas at a much lower tax rate than usual. But it's a one-time opportunity, and companies that think they could benefit need to start planning now.

The U.S. usually levies a 35% tax on earnings that companies repatriate, although companies get a credit for any foreign taxes paid on the money. The new law lets them bring money back at a 5.25% rate, in either the tax year in which the law was enacted or the following tax year, provided that the money is invested in the U.S. But there's considerable analysis that companies need to do, looking at not only the tax consequences but the financial consequences of bringing the money back and making the investment in the U.S. And the work will involve not only the tax and finance groups, but treasury, operations and human resources, consultants say.

Manal Corwin, a principal in the national tax practice of KPMG LLP in Washington, says companies considering repatriating have to look at their repatriation history, since the lower tax rate is only available on sums in excess of the average they've repatriated in three out of the last five years. They also have to consider the foreign taxes paid, since the foreign tax credit isn't available for funds coming back at the lower rate. "To the extent a corporation repatriates earnings that have a high foreign effective tax rate, it will lose the foreign tax credits attributable to the deductible amount. Accordingly, in certain circumstances it could be a costly repatriation," Corwin says. "Typically, companies are going to look to repatriate low-taxed earnings."