1. Short title This Act may be cited as the Prohibiting Incentives for Corporations that Kickout Employees Tax (PICKET) Act . 2. Rate of tax for corporations participating in labor lockouts (a) In general Section 11 of the Internal Revenue Code of 1986 is amended by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection: (c) Exception for disqualified corporations (1) In general In the case of any corporation participating in a labor lockout during the taxable year, subsection (b) shall be applied by substituting 35 percent for 21 percent . (2) Labor lockout For purposes of this subsection, the term labor lockout means a labor dispute involving a work stoppage, wherein an employer withholds work from its employees in order to gain a concession from them. . (b) Conforming amendments (1) The heading of section 11(d) of the Internal Revenue Code of 1986 (as redesignated by subsection (a)) is amended by striking Exceptions and inserting Other exceptions . (2) Section 280C(c)(2)(B)(ii)(II) of such Code is amended by inserting (section 11(c), in the case of a disqualified domestic subsidiary (as defined in such section)) after section 11(b) . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 3. Denial of deduction and credits for wages and benefits paid to temporary workers during a labor lockout (a) Deduction (1) In general Part IX of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: 280I. Remuneration paid during labor lockouts (a) In general No deduction shall be allowed for any remuneration paid by the taxpayer (including wages or other benefits) to any temporary replacement worker during a labor lockout (as defined in section 11(c)(2)). (b) Temporary replacement worker For purposes of subsection (a), the term temporary replacement worker means any individual