# 119-s-409: No Tax Breaks for Outsourcing Act

119-s-409, No Tax Breaks for Outsourcing Act, is a 119th Congress bill sponsored by Sen. Whitehouse, Sheldon [D-RI] (D-RI); status introduced; PRIA reads it as touching household money (as of 2026-06-11).

- Canonical: https://policyrisk.com/legislation/119-s-409
- As of: 2026-06-11
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-409
- Congress: 119
- Title: No Tax Breaks for Outsourcing Act
- Status: introduced
- Introduced: 2025-02-05
- Sponsor: Sen. Whitehouse, Sheldon [D-RI] (D-RI)
- Cosponsors: 20
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-06-11

## Summary

**This bill would deliver a broad overhaul of U.S. international tax rules, primarily to end special low rates for offshore profits and tighten rules that let multinationals shift income abroad.** It replaces the GILTI system with a current‑year inclusion for 'net CFC tested income' and repeals Section 250 reduced‑rate benefits for foreign‑derived intangible income.

## Cosponsors (20)

- Sen. Durbin, Richard J. [D-IL] (D-IL), 2025-02-05T00:00:00.000Z
- Sen. Murphy, Christopher [D-CT] (D-CT), 2025-02-05T00:00:00.000Z
- Sen. Reed, Jack [D-RI] (D-RI), 2025-02-05T00:00:00.000Z
- Sen. Baldwin, Tammy [D-WI] (D-WI), 2025-02-05T00:00:00.000Z
- Sen. Warren, Elizabeth [D-MA] (D-MA), 2025-02-05T00:00:00.000Z
- Sen. Merkley, Jeff [D-OR] (D-OR), 2025-02-05T00:00:00.000Z
- Sen. Markey, Edward J. [D-MA] (D-MA), 2025-02-05T00:00:00.000Z
- Sen. Schatz, Brian [D-HI] (D-HI), 2025-02-05T00:00:00.000Z
- Sen. Fetterman, John [D-PA] (D-PA), 2025-02-05T00:00:00.000Z
- Sen. Blumenthal, Richard [D-CT] (D-CT), 2025-02-05T00:00:00.000Z
- Sen. Van Hollen, Chris [D-MD] (D-MD), 2025-02-05T00:00:00.000Z
- Sen. Gallego, Ruben [D-AZ] (D-AZ), 2025-02-05T00:00:00.000Z
- Sen. Hirono, Mazie K. [D-HI] (D-HI), 2025-02-05T00:00:00.000Z
- Sen. Heinrich, Martin [D-NM] (D-NM), 2025-02-05T00:00:00.000Z
- Sen. Booker, Cory A. [D-NJ] (D-NJ), 2025-02-05T00:00:00.000Z
- Sen. Smith, Tina [D-MN] (D-MN), 2025-02-05T00:00:00.000Z
- Sen. Duckworth, Tammy [D-IL] (D-IL), 2025-02-05T00:00:00.000Z
- Sen. Welch, Peter [D-VT] (D-VT), 2025-02-24T00:00:00.000Z
- Sen. Luján, Ben Ray [D-NM] (D-NM), 2025-04-01T00:00:00.000Z
- Sen. Schiff, Adam B. [D-CA] (D-CA), 2026-06-09T00:00:00.000Z

## Provisions PRIA read

- Five-year carryforward for disallowed interest: benefit, medium. This bill would let companies use interest disallowed under current limits in later years. Disallowed interest could be used for up to five years and must be used FIFO. This applies to tax years beginning after Dec 31, 2024.
- Some foreign companies treated as U.S.: cost, high. This bill would treat some foreign corporations as domestic if management and control is mainly in the U.S. It covers firms regularly traded publicly or with $50,000,000 or more in assets. The Treasury would write rules to decide when U.S. management counts. The rule starts two years after the bill…
- Tighter rules on corporate inversions: cost, high. This bill would make more foreign parents treated as U.S. companies after inversions. It raises the surrogate test to 80% and adds post-deal ownership and U.S. management tests. The rule applies to tax years ending after Dec 22, 2017 and allows three-year assessments to enforce the changes.
- New rules for U.S. multinational taxes: mixed, high. This bill would replace GILTI with a new per-country "net CFC tested income" rule. U.S. shareholders would include current-year net CFC income country-by-country. It would repeal the low-rate deduction for FDII/GILTI and narrow some exclusions. It would let deemed-paid foreign tax credits for teste…

## Related bills

- 119-s-5066: Health Equity and Accountability Act of 2026
- 119-s-2823: FAMILY Act
- 119-s-51: Washington, D.C. Admission Act
- 119-s-5108: Right to IVF Act of 2026
- 119-s-1503: Equality Act
- 119-s-852: Richard L. Trumka Protecting the Right to Organize Act of 2025

## Sources
- [119-s-409 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/409)

## Related
- [119-s-5066: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-s-5066)
- [119-s-2823: FAMILY Act](https://policyrisk.com/legislation/119-s-2823)
- [119-s-51: Washington, D.C. Admission Act](https://policyrisk.com/legislation/119-s-51)
- [119-s-5108: Right to IVF Act of 2026](https://policyrisk.com/legislation/119-s-5108)
- [119-s-1503: Equality Act](https://policyrisk.com/legislation/119-s-1503)
- [119-s-852: Richard L. Trumka Protecting the Right to Organize Act of 2025](https://policyrisk.com/legislation/119-s-852)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-409 (as of 2026-06-11).