# 119-hr-9244: Business Activity Tax Simplification Act of 2026

119-hr-9244, Business Activity Tax Simplification Act of 2026, is a 119th Congress bill sponsored by Rep. Harrigan, Pat [R-NC-10] (R-NC); status introduced; PRIA reads it as touching household money (as of 2026-07-09).

- Canonical: https://policyrisk.com/legislation/119-hr-9244
- As of: 2026-07-09
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-9244
- Congress: 119
- Title: Business Activity Tax Simplification Act of 2026
- Status: introduced
- Introduced: 2026-06-10
- Sponsor: Rep. Harrigan, Pat [R-NC-10] (R-NC)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-07-09

## Summary

**Would restore a strict physical-presence nexus for state business taxes.** The bill would also extend similar protections to digital goods and digital services and lay out specific rules for how affiliated companies are taxed across state lines. - Digital sellers: The bill defines "digital good" and "digital service" and treats electronic sales and services like other transactions for solicitation rules. It also clarifies that leasing or licensing computer software is excluded from the tangible personal property rule in certain provisions. - Multi-entity businesses: When affiliates are included in a state's tax base the bill requires apportionment using an aggregate denominator and a numerator that counts only in-state factors for taxable entities. This changes how group returns and attribution work for related companies. - State tax limits and exceptions: The bill sets a minimum physical-presence standard and a de minimis rule that ignores presence under 15 days in a taxable year. It preserves state powers to pursue illegal or sham transactions and to require combined reporting and would apply to taxable periods starting January 1, 2026.

## Provisions PRIA read

- Lower state tax reach for businesses: benefit, high. This bill would stop a State from taxing a business's net income or similar business-activity tax unless the business has a physical presence in the State during the tax period. Physical presence would include a person or assigned employees in the State, a non-employee agent who only works for you…
- Limits on state combined business taxes: benefit, medium. This bill would change how States compute combined or consolidated business income for related companies. States would have to use the same method that applies to similarly situated businesses. If an apportionment formula is used, the denominator would include all group members' factors, but the nu…

## Related bills

- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-4669: FEMA Act of 2025
- 119-hr-6976: Duty Status Reform Act
- 119-hr-2725: Affordable Housing Credit Improvement Act of 2025
- 119-hr-1229: United States-Israel Defense Partnership Act of 2025
- 119-hr-1656: PLUS for Veterans Act of 2025

## Sources
- [119-hr-9244 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/9244)

## Related
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-4669: FEMA Act of 2025](https://policyrisk.com/legislation/119-hr-4669)
- [119-hr-6976: Duty Status Reform Act](https://policyrisk.com/legislation/119-hr-6976)
- [119-hr-2725: Affordable Housing Credit Improvement Act of 2025](https://policyrisk.com/legislation/119-hr-2725)
- [119-hr-1229: United States-Israel Defense Partnership Act of 2025](https://policyrisk.com/legislation/119-hr-1229)
- [119-hr-1656: PLUS for Veterans Act of 2025](https://policyrisk.com/legislation/119-hr-1656)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-9244 (as of 2026-07-09).