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Tax Incentives for Transferring Intangible Property to US Companies

New rules aim to encourage US companies to transfer intellectual property, such as patents and software, from their foreign subsidiaries back to the United States. This allows companies to avoid paying taxes on profits from these assets, potentially boosting their competitiveness and creating jobs domestically.
Key points
Companies can transfer intellectual property (e.g., patents, software) from foreign subsidiaries to the US without recognizing gain for tax purposes.
The fair market value of transferred property will be treated as not exceeding its original book value, reducing tax burdens.
These changes apply to transactions occurring after December 31, 2021.
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Additional Information
Print number: 117_HR_2031
Sponsor: Rep. LaHood, Darin [R-IL-18]
Process start date: 2021-03-18
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to encourage the transfer of intangible property from controlled foreign corporations to United States shareholders.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_2031.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-03-18.

What are the main provisions?

Key points include:

  • Companies can transfer intellectual property (e.g., patents, software) from foreign subsidiaries to the US without recognizing gain for tax purposes.
  • The fair market value of transferred property will be treated as not exceeding its original book value, reducing tax burdens.
  • These changes apply to transactions occurring after December 31, 2021.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. LaHood, Darin [R-IL-18].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes Economy