# 114-hr-4581: Stop Corporate Earnings Stripping Act of 2016

114-hr-4581, Stop Corporate Earnings Stripping Act of 2016, is a 114th Congress bill sponsored by SANDER LEVIN (D-MI); status Referred to the House Committee on Ways and Means. (as of 2025-11-18).

- Canonical: https://policyrisk.com/legislation/114-hr-4581
- As of: 2025-11-18
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 114-hr-4581
- Congress: 114
- Title: Stop Corporate Earnings Stripping Act of 2016
- Status: Referred to the House Committee on Ways and Means.
- Introduced: 2016-02-23
- Sponsor: SANDER LEVIN (D-MI)
- Cosponsors: 4
- Policy area: Taxation
- Touches household money: no
- Last recorded action: 2025-11-18

## Summary

Stop Corporate Earnings Stripping Act of 2016 This bill amends the Internal Revenue Code to limit the tax deduction available to certain foreign-controlled U.S. multinational corporations for excess interest on debt incurred by such corporation (i.e., earnings stripping) by: (1) repealing the debt-to-equity ratio threshold required for such deduction, (2) reducing the permitted net interest expense threshold from 50% to 25% of the corporation's adjusted taxable income, (3) repealing the carryforward of excess amounts of interest, and (4) limiting to five years the carryforward of disallowed interest expense.

## Cosponsors (4)

- Rep. Thompson, Mike [D-CA-4] (D-CA), 2016-02-23T00:00:00.000Z
- Sen. Van Hollen, Chris [D-MD] (D-MD), 2016-02-23T00:00:00.000Z
- Rep. Pascrell, Bill, Jr. [D-NJ-9] (D-NJ), 2016-02-23T00:00:00.000Z
- CHARLES RANGEL (D-NY), 2016-02-23T00:00:00.000Z

## Related bills

- 114-hr-5621: To posthumously award a Congressional Gold Medal to Lawrence Eugene "Larry" Doby in recognition of his achievements and contributions to American major league…
- 114-hr-5261: Protecting the U.S. Corporate Tax Base Act of 2016
- 114-hr-5125: Corporate EXIT Fairness Act
- 114-hr-5044: Making supplemental appropriations for fiscal year 2016 to respond to Zika virus.
- 114-hr-4592: Naismith Memorial Basketball Hall of Fame Commemorative Coin Act
- 114-hr-4521: Lake Berryessa Recreation Enhancement Act of 2016

## Sources
- [114-hr-4581 on Congress.gov](https://www.congress.gov/bill/114th-congress/house-bill/4581)

## Related
- [114-hr-5621: To posthumously award a Congressional Gold Medal to Lawrence Eugene "Larry" Dob…](https://policyrisk.com/legislation/114-hr-5621)
- [114-hr-5261: Protecting the U.S. Corporate Tax Base Act of 2016](https://policyrisk.com/legislation/114-hr-5261)
- [114-hr-5125: Corporate EXIT Fairness Act](https://policyrisk.com/legislation/114-hr-5125)
- [114-hr-5044: Making supplemental appropriations for fiscal year 2016 to respond to Zika viru…](https://policyrisk.com/legislation/114-hr-5044)
- [114-hr-4592: Naismith Memorial Basketball Hall of Fame Commemorative Coin Act](https://policyrisk.com/legislation/114-hr-4592)
- [114-hr-4521: Lake Berryessa Recreation Enhancement Act of 2016](https://policyrisk.com/legislation/114-hr-4521)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/114-hr-4581 (as of 2025-11-18).