# 119-hr-2423: Unfair Tax Prevention Act

119-hr-2423, Unfair Tax Prevention Act, is a 119th Congress bill sponsored by Rep. Estes, Ron [R-KS-4] (R-KS); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-hr-2423
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-2423
- Congress: 119
- Title: Unfair Tax Prevention Act
- Status: introduced
- Introduced: 2025-03-27
- Sponsor: Rep. Estes, Ron [R-KS-4] (R-KS)
- Cosponsors: 24
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**This bill would revise the Base Erosion and Anti‑Abuse Tax (BEAT) to treat** foreign‑owned extraterritorial tax regime entities differently in U.S. tax tests. It would count 50% of those entities' cost of goods sold as a base erosion tax benefit when determining BEAT exposure. - Corporations that meet the bill's new definition of a foreign‑owned extraterritorial tax regime entity would be pulled into BEAT calculations by treating part of their cost of goods sold as base erosion payments. - The bill carves out certain BEAT rules for these entities by making subsections (c)(2)(B), (c)(4)(B)(ii), and (d)(5) inapplicable, and it applies specific BEAT testing references from subsection (e)(1). - It defines key terms including "extraterritorial tax" to cover foreign taxes tied to income through ownership chains, and it sets the rules to apply to taxable years beginning after enactment and replaces a Dec. 31, 2025 cutoff with the enactment date.

## Cosponsors (24)

- Rep. Buchanan, Vern [R-FL-16] (R-FL), 2025-03-27T00:00:00.000Z
- Rep. Smith, Adrian [R-NE-3] (R-NE), 2025-03-27T00:00:00.000Z
- Rep. Kelly, Mike [R-PA-16] (R-PA), 2025-03-27T00:00:00.000Z
- Rep. Schweikert, David [R-AZ-1] (R-AZ), 2025-03-27T00:00:00.000Z
- Rep. LaHood, Darin [R-IL-16] (R-IL), 2025-03-27T00:00:00.000Z
- Rep. Arrington, Jodey C. [R-TX-19] (R-TX), 2025-03-27T00:00:00.000Z
- Rep. Smucker, Lloyd [R-PA-11] (R-PA), 2025-03-27T00:00:00.000Z
- Rep. Hern, Kevin [R-OK-1] (R-OK), 2025-03-27T00:00:00.000Z
- Rep. Miller, Carol D. [R-WV-1] (R-WV), 2025-03-27T00:00:00.000Z
- Rep. Murphy, Gregory F. [R-NC-3] (R-NC), 2025-03-27T00:00:00.000Z
- Rep. Kustoff, David [R-TN-8] (R-TN), 2025-03-27T00:00:00.000Z
- Rep. Fitzpatrick, Brian K. [R-PA-1] (R-PA), 2025-03-27T00:00:00.000Z
- Rep. Steube, W. Gregory [R-FL-17] (R-FL), 2025-03-27T00:00:00.000Z
- Rep. Tenney, Claudia [R-NY-24] (R-NY), 2025-03-27T00:00:00.000Z
- Rep. Fischbach, Michelle [R-MN-7] (R-MN), 2025-03-27T00:00:00.000Z
- Rep. Moore, Blake D. [R-UT-1] (R-UT), 2025-03-27T00:00:00.000Z
- Rep. Van Duyne, Beth [R-TX-24] (R-TX), 2025-03-27T00:00:00.000Z
- Rep. Feenstra, Randy [R-IA-4] (R-IA), 2025-03-27T00:00:00.000Z
- Rep. Malliotakis, Nicole [R-NY-11] (R-NY), 2025-03-27T00:00:00.000Z
- Rep. Carey, Mike [R-OH-15] (R-OH), 2025-03-27T00:00:00.000Z
- Rep. Yakym, Rudy [R-IN-2] (R-IN), 2025-03-27T00:00:00.000Z
- Rep. Miller, Max L. [R-OH-7] (R-OH), 2025-03-27T00:00:00.000Z
- Rep. Bean, Aaron [R-FL-4] (R-FL), 2025-03-27T00:00:00.000Z
- Rep. Moran, Nathaniel [R-TX-1] (R-TX), 2025-03-27T00:00:00.000Z

## Provisions PRIA read

- Higher taxes for some foreign-owned companies: cost, low. This bill would set special rules under the Base Erosion and Anti‑Abuse Tax (BEAT) for some foreign‑owned companies. It would define these firms as ones controlled by a foreign entity and tied to a foreign “extraterritorial tax.” For those firms, 50% of their cost of goods sold would count as a bas…

## Related bills

- 119-hr-591: Defending American Jobs and Investment Act
- 119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage Act
- 119-hr-1156: Pandemic Unemployment Fraud Enforcement Act
- 119-hr-1882: Saving Gig Economy Taxpayers Act
- 119-hr-703: Main Street Tax Certainty Act
- 119-hr-1990: American Innovation and R&D Competitiveness Act of 2025

## Sources
- [119-hr-2423 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/2423)

## Related
- [119-hr-591: Defending American Jobs and Investment Act](https://policyrisk.com/legislation/119-hr-591)
- [119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage A…](https://policyrisk.com/legislation/119-hr-842)
- [119-hr-1156: Pandemic Unemployment Fraud Enforcement Act](https://policyrisk.com/legislation/119-hr-1156)
- [119-hr-1882: Saving Gig Economy Taxpayers Act](https://policyrisk.com/legislation/119-hr-1882)
- [119-hr-703: Main Street Tax Certainty Act](https://policyrisk.com/legislation/119-hr-703)
- [119-hr-1990: American Innovation and R&D Competitiveness Act of 2025](https://policyrisk.com/legislation/119-hr-1990)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-2423 (as of 2025-12-21).