On February 13, 2012, the Administration released its fiscal year 2013 Budget and related "Green Book". The Budget re-proposes three tax provisions from the FY 2011 and FY 2012 Budgets and adds a new provision, all of which could impact foreign-based multinational corporations and their US subsidiaries. The re-proposed provisions would 1) disallow certain deductions for non-taxed reinsurance premiums paid to foreign affiliates, 2) limit interest deductions by expatriated entities and 3) repeal the boot-with-gain limitation for certain distributions received in reorganization exchanges. The new provision would treat the gain or loss from the sale of a partnership interest as income effectively connected ("ECI") with the conduct of a US trade or business to the extent the selling partner's share of the unrealized gain or loss is attributable to property giving rise to effectively connected income. This newsalert provides a summary of these provisions.