1. Short title This Act may be cited as the American Business for American Companies Act of 2017 . 2. Prohibition on awarding contracts to inverted domestic corporations (a) Civilian contracts (1) In general Chapter 47 of title 41, United States Code, is amended by adding at the end the following new section: 4713. Prohibition on awarding contracts to inverted domestic corporations (a) Prohibition (1) In general The head of an executive agency may not award a contract for the procurement of property or services to— (A) any foreign incorporated entity that such head has determined is an inverted domestic corporation or any subsidiary of such entity; or (B) any joint venture if more than 10 percent of the joint venture (by vote or value) is held by a foreign incorporated entity that such head has determined is an inverted domestic corporation or any subsidiary of such entity. (2) Subcontracts (A) In general The head of an executive agency shall include in each contract for the procurement of property or services awarded by the executive agency with a value in excess of $10,000,000, other than a contract for exclusively commercial items, a clause that prohibits the prime contractor on such contract from— (i) awarding a first-tier subcontract with a value greater than 10 percent of the total value of the prime contract to an entity or joint venture described in paragraph (1); or (ii) structuring subcontract tiers in a manner designed to avoid the limitation in paragraph (1) by enabling an entity or joint venture described in paragraph (1) to perform more than 10 percent of the total value of the prime contract as a lower-tier subcontractor. (B) Penalties The contract clause included in contracts pursuant to subparagraph (A) shall provide that, in the event that the prime contractor violates the contract clause— (i) the prime contract may be terminated for default