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Ending Tax Breaks for Outsourcing: Stricter Rules on Foreign Corporate Income

This Act aims to eliminate tax incentives that encourage large corporations to shift operations and profits outside the United States. It introduces stricter rules for taxing foreign income, requires country-by-country accounting for foreign taxes, and significantly tightens regulations against corporate inversions. The overall goal is to increase US tax revenue and discourage outsourcing.
Key points
Replaces GILTI provisions with 'net CFC tested income' and repeals associated deductions, ensuring foreign profits are taxed at the full US corporate rate.
Mandates country-by-country application of foreign tax credits, preventing companies from using tax credits from high-tax countries to offset US tax on low-tax foreign income.
Tightens rules on corporate inversions, treating foreign corporations as domestic if management and control are primarily located in the US.
Limits interest deductions for US corporations belonging to large international financial groups based on their share of the group's EBITDA.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_995
Sponsor: Rep. Doggett, Lloyd [D-TX-37]
Process start date: 2025-02-05
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OFFICIAL LEGAL TITLE

No Tax Breaks for Outsourcing Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_995.

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 2025-02-05.

What are the main provisions?

Key points include:

  • Replaces GILTI provisions with 'net CFC tested income' and repeals associated deductions, ensuring foreign profits are taxed at the full US corporate rate.
  • Mandates country-by-country application of foreign tax credits, preventing companies from using tax credits from high-tax countries to offset US tax on low-tax foreign income.
  • Tightens rules on corporate inversions, treating foreign corporations as domestic if management and control are primarily located in the US.
  • Limits interest deductions for US corporations belonging to large international financial groups based on their share of the group's EBITDA.
What is the specific legal status?

The current status is Introduced.

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. Doggett, Lloyd [D-TX-37].

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 2025-12-31.

CATEGORIES

Taxes Economy