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119-hr-1062119th CongressWALLET

Growing and Preserving Innovation in America Act of 2025

Sponsored By: Representative Feenstra, Randy [R-IA-4]

Introduced

Summary

Sets the FDII deduction calculation at a 37.5% rate. This bill would change how the tax code computes the foreign-derived intangible income deduction by replacing the prior rate with 37.5 percent, effective on enactment.

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  • U.S. companies with foreign-derived intangible income, mainly exporters of intellectual property and services, would compute their FDII deduction using 37.5% instead of 50%, altering the amount deductible from their taxable income.
  • Corporate tax departments and tax advisers would need to update calculations and tax filings to reflect the new 37.5% substitution immediately after enactment.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Smaller tax break on foreign income for corporations

If enacted, U.S. corporations that claim the foreign-derived intangible income (FDII) deduction would get a smaller write-off. The bill would use 37.5% instead of 50% in the FDII calculation. This would raise taxable income and taxes for those companies. Roughly, tax would rise by 12.5% of the FDII base, times the corporate tax rate. The change would take effect on the date of enactment.

Sponsors & CoSponsors

Sponsor

Feenstra, Randy [R-IA-4]

IA • R

Cosponsors

  • Rep. Morelle, Joseph D. [D-NY-25]

    NY • D

    Sponsored 2/6/2025

  • Rep. Buchanan, Vern [R-FL-16]

    FL • R

    Sponsored 2/21/2025

  • Rep. Estes, Ron [R-KS-4]

    KS • R

    Sponsored 2/21/2025

  • Rep. Tenney, Claudia [R-NY-24]

    NY • R

    Sponsored 2/21/2025

  • Rep. Miller, Max L. [R-OH-7]

    OH • R

    Sponsored 2/21/2025

  • Rep. Smucker, Lloyd [R-PA-11]

    PA • R

    Sponsored 3/11/2025

  • Rep. Jack, Brian [R-GA-3]

    GA • R

    Sponsored 4/17/2025

Roll Call Votes

No roll call votes available for this bill.

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