<p>In the second quarter, U.S. companies have repatriated $169.5 billion, according to a recent report from the Commerce Department.</p>
<p>To avoid U.S. taxes, companies often stockpile funds overseas. ;</p>
<p>But the GOP&#8217;s tax overhaul signed into law by President Donald Trump last December is expected to encourage companies to keep business in the U.S. ;</p>
<p>&#8220;The U.S. has made it more attractive for companies by establishing a tax of 15.5% for the one-time repatriation of cash. The tax for other noncash assets is even less at 8%,&#8221; writes <em>Market Watch.</em> &#8220;By contrast, the tax rate on profits returned to the U.S. from overseas was a much higher 35% before Trump signed the first corporate tax cuts in 31 years.&#8221;</p>
<p>With the new tax benefits, tech giant Apple is planning to bring the majority of its cash reserves back to the U.S. ;</p>
<p>&ldquo;With over $250 billion stashed overseas, Apple stands to pay roughly $40 billion under the deemed repatriation provision of the new law,&rdquo; wrote<em> Seeking Alpha</em> in January. ;</p>
<p>Besides Apple, at least 100 companies have given out bonuses to employees and boosted philanthropic donations. Many have also increased plans to do business in the U.S. ;</p>
<p>According to the Commerce Department&#8217;s findings, there has been a $34.9 billion spike in repatriated funds compared to the year before. In the first quarter, U.S. companies returned $294.9 billion.</p>
<p>Trump has said that he expects $4 trillion to return to the U.S. ;</p>
<p>However, this isn&#8217;t going to happen overnight. Most of these companies don&#8217;t have their funds just sitting in an off-shore bank account. ;</p>
<p>&ldquo;A lot of companies have a large liability, but they don&rsquo;t have a large amount of cash sitting out there,&rdquo; said Cory Perry, international tax senior manager at accounting firm Grant Thornton. &ldquo;They have it invested in manufacturing or plants or have it in a holding company where it is deployed in other jurisdictions.&rdquo;</p>
<p>Not to mention, depending on the country like in China and Brazil it&#8217;s not easy to pull cash and move it quickly due to local laws. ;</p>
<p>But that doesn&#8217;t mean that companies aren&#8217;t going to return some of their profits from overseas. $465 billion has been returned so far, which is one-sixth of the $3 trillion estimated to be held overseas. ;</p>
<p>&#8220;The Joint Committee on Taxation estimates the repatriation levy will generate $338.8 billion in tax revenue over 10 years. If cash and non-cash assets were to be repatriated in equal amounts that would equal corporations paying taxes on approximately $2.86 trillion,&#8221; writes <em>Newsmax. ;</em></p>
<p><strong>Author&#8217;s note</strong>: Some media outlets are claiming the repatriation is not happening fast enough. But $465 billion, which is almost a half a trillion is certainly impressive and is no small feat for only three quarters.</p>