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Major International Tax Overhaul: Lowering Corporate Burden and Boosting Competitiveness.

This bill significantly reforms how US multinational corporations are taxed on their foreign earnings, aiming to enhance global competitiveness and simplify complex tax rules. Key changes include reducing the tax burden on foreign income and streamlining the process for claiming credits for foreign taxes paid. While these changes directly affect large businesses, the stated goal is to incentivize domestic investment and job creation.
Key points
Eliminating the 80% limit on foreign tax credits for Global Intangible Low-Taxed Income (GILTI), allowing corporations to claim 100% credit.
Simplifying the foreign tax credit system by reducing the number of income categories (baskets) from four to two.
Repealing the immediate US taxation of foreign income derived from sales and services (Subpart F), providing substantial relief for multinational operations.
Modifying the Base Erosion Minimum Tax (BEAT) rules, including new exceptions for payments already subject to sufficient foreign taxation.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1605
Sponsor: Sen. Tillis, Thomas [R-NC]
Process start date: 2025-05-06
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OFFICIAL LEGAL TITLE

International Competition for American Jobs Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_1605.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-05-06.

What are the main provisions?

Key points include:

  • Eliminating the 80% limit on foreign tax credits for Global Intangible Low-Taxed Income (GILTI), allowing corporations to claim 100% credit.
  • Simplifying the foreign tax credit system by reducing the number of income categories (baskets) from four to two.
  • Repealing the immediate US taxation of foreign income derived from sales and services (Subpart F), providing substantial relief for multinational operations.
  • Modifying the Base Erosion Minimum Tax (BEAT) rules, including new exceptions for payments already subject to sufficient foreign taxation.
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 Sen. Tillis, Thomas [R-NC].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

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