HR995119th CongressWALLET

No Tax Breaks for Outsourcing Act

Sponsored By: Representative Doggett, Lloyd [D-TX-37]

Introduced

Summary

Overhauls how the U.S. taxes multinational profits by replacing GILTI with a country-by-country framework. The bill would also repeal the FDII reduced-rate break and tighten cross-border rules on interest, inversions, and foreign tax credits.

Show full summary
  • U.S. shareholders of foreign groups: Would replace GILTI with a new "net CFC tested income" measured country-by-country, narrow exclusions, treat oil-related foreign income as Subpart F, and increase the deemed-paid foreign tax credit to 100% for tested income. Many changes would apply to taxable years beginning after December 31, 2024.
  • Domestic corporations in international financial reporting groups: Would limit interest deductions by allocating group net interest based on EBITDA and would allow disallowed interest to carry forward for up to five years.
  • Inversions and foreign firms managed in the U.S.: Would tighten inversion rules by raising the surrogate-foreign ownership threshold to 80% and creating an "inverted domestic corporation" test, and would allow some foreign corporations managed and controlled in the U.S. to be treated as domestic after two years.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 5 costs, 1 mixed.

Full credit for foreign taxes

This bill would let U.S. shareholders claim a deemed-paid foreign tax credit equal to 100% of properly attributable foreign taxes on tested income. It would remove the prior 80% cap. The change would apply to tax years starting after December 31, 2024.

End low tax rate for FDII

This bill would repeal the reduced-rate rule for foreign-derived intangible income (FDII). Domestic corporations that used the lower rate would face higher U.S. tax. The change would apply to taxable years beginning after December 31, 2024.

Foreign tax credits limited by country

This bill would require taxpayers to compute the foreign tax credit limit separately for each country. Branches and U.S. possessions would count as separate countries. It would also remove the ability to carry foreign tax credits back to the prior year. The changes would apply to tax years starting after December 31, 2024.

Higher U.S. tax on offshore profits

This bill would rename GILTI to "net CFC tested income" and narrow what counts as tested income. U.S. shareholders would compute that income by country. It would add certain oil-related foreign income to Subpart F and remove the high-tax exclusion. These rules would apply to foreign corporations' tax years starting after December 31, 2024.

New limits and carryforwards for interest

This bill would limit interest deductions for members of large international financial reporting groups using an EBITDA-based share test. It would also let disallowed interest be carried forward and treated as paid interest for up to five years. The rules would apply to tax years starting after December 31, 2024.

Tighter rules on corporate inversions

This bill would tighten inversion rules by raising the ownership test to 80% and adding a domestic business activity test. It would also let the IRS assess tax tied to those changes for up to three years after enactment. The changes apply to taxable years ending after December 22, 2017.

Treat U.S.-managed foreign firms as domestic

This bill would treat some foreign corporations managed and controlled mainly in the United States as domestic for tax purposes. It would apply when the firm's stock trades regularly or its assets (including assets under management) are $50,000,000 or more. The rule would start two years after enactment and allow limited waivers.

Sponsors & CoSponsors

Sponsor

Doggett, Lloyd [D-TX-37]

TX • D

Cosponsors

  • Adams

    NC • D

    Sponsored 2/5/2025

  • Rep. Ansari, Yassamin [D-AZ-3]

    AZ • D

    Sponsored 2/5/2025

  • Rep. Balint, Becca [D-VT-At Large]

    VT • D

    Sponsored 2/5/2025

  • Barragan

    CA • D

    Sponsored 2/5/2025

  • Rep. Beatty, Joyce [D-OH-3]

    OH • D

    Sponsored 2/5/2025

  • Bishop

    GA • D

    Sponsored 2/5/2025

  • Bonamici

    OR • D

    Sponsored 2/5/2025

  • Rep. Boyle, Brendan F. [D-PA-2]

    PA • D

    Sponsored 2/5/2025

  • Rep. Brown, Shontel M. [D-OH-11]

    OH • D

    Sponsored 2/5/2025

  • Rep. Brownley, Julia [D-CA-26]

    CA • D

    Sponsored 2/5/2025

  • Budzinski

    IL • D

    Sponsored 2/5/2025

  • Carson

    IN • D

    Sponsored 2/5/2025

  • Rep. Carter, Troy A. [D-LA-2]

    LA • D

    Sponsored 2/5/2025

  • Rep. Casar, Greg [D-TX-35]

    TX • D

    Sponsored 2/5/2025

  • Rep. Case, Ed [D-HI-1]

    HI • D

    Sponsored 2/5/2025

  • Rep. Chu, Judy [D-CA-28]

    CA • D

    Sponsored 2/5/2025

  • Rep. Clarke, Yvette D. [D-NY-9]

    NY • D

    Sponsored 2/5/2025

  • Rep. Cleaver, Emanuel [D-MO-5]

    MO • D

    Sponsored 2/5/2025

  • Cohen

    TN • D

    Sponsored 2/5/2025

  • Conaway

    NJ • D

    Sponsored 2/5/2025

  • Crockett

    TX • D

    Sponsored 2/5/2025

  • Crow

    CO • D

    Sponsored 2/5/2025

  • Davis (IL)

    IL • D

    Sponsored 2/5/2025

  • Davis (NC)

    NC • D

    Sponsored 2/5/2025

  • Rep. Dean, Madeleine [D-PA-4]

    PA • D

    Sponsored 2/5/2025

  • Rep. McClain Delaney, April [D-MD-6]

    MD • D

    Sponsored 2/5/2025

  • Rep. DeLauro, Rosa L. [D-CT-3]

    CT • D

    Sponsored 2/5/2025

  • DelBene

    WA • D

    Sponsored 2/5/2025

  • Rep. Deluzio, Christopher R. [D-PA-17]

    PA • D

    Sponsored 2/5/2025

  • Rep. DeSaulnier, Mark [D-CA-10]

    CA • D

    Sponsored 2/5/2025

  • Rep. Dexter, Maxine [D-OR-3]

    OR • D

    Sponsored 2/5/2025

  • Rep. Dingell, Debbie [D-MI-6]

    MI • D

    Sponsored 2/5/2025

  • Escobar

    TX • D

    Sponsored 2/5/2025

  • Espaillat

    NY • D

    Sponsored 2/5/2025

  • Rep. Evans, Dwight [D-PA-3]

    PA • D

    Sponsored 2/5/2025

  • Rep. Leger Fernandez, Teresa [D-NM-3]

    NM • D

    Sponsored 2/5/2025

  • Rep. Foster, Bill [D-IL-11]

    IL • D

    Sponsored 2/5/2025

  • Rep. Foushee, Valerie P. [D-NC-4]

    NC • D

    Sponsored 2/5/2025

  • Rep. Frankel, Lois [D-FL-22]

    FL • D

    Sponsored 2/5/2025

  • Rep. Frost, Maxwell [D-FL-10]

    FL • D

    Sponsored 2/5/2025

  • Rep. Garamendi, John [D-CA-8]

    CA • D

    Sponsored 2/5/2025

  • Rep. García, Jesús G. "Chuy" [D-IL-4]

    IL • D

    Sponsored 2/5/2025

  • Rep. Garcia, Robert [D-CA-42]

    CA • D

    Sponsored 2/5/2025

  • Rep. Garcia, Sylvia R. [D-TX-29]

    TX • D

    Sponsored 2/5/2025

  • Rep. Golden, Jared F. [D-ME-2]

    ME • D

    Sponsored 2/5/2025

  • Rep. Goldman, Daniel S. [D-NY-10]

    NY • D

    Sponsored 2/5/2025

  • Gomez

    CA • D

    Sponsored 2/5/2025

  • Rep. Green, Al [D-TX-9]

    TX • D

    Sponsored 2/5/2025

  • Grijalva

    AZ • D

    Sponsored 2/5/2025

  • Rep. Hayes, Jahana [D-CT-5]

    CT • D

    Sponsored 2/5/2025

  • Rep. Horsford, Steven [D-NV-4]

    NV • D

    Sponsored 2/5/2025

  • Rep. Hoyle, Val T. [D-OR-4]

    OR • D

    Sponsored 2/5/2025

  • Rep. Huffman, Jared [D-CA-2]

    CA • D

    Sponsored 2/5/2025

  • Ivey

    MD • D

    Sponsored 2/5/2025

  • Jackson (IL)

    IL • D

    Sponsored 2/5/2025

  • Rep. Jayapal, Pramila [D-WA-7]

    WA • D

    Sponsored 2/5/2025

  • Johnson (GA)

    GA • D

    Sponsored 2/5/2025

  • Rep. Kaptur, Marcy [D-OH-9]

    OH • D

    Sponsored 2/5/2025

  • Rep. Kelly, Robin L. [D-IL-2]

    IL • D

    Sponsored 2/5/2025

  • Kennedy (NY)

    NY • D

    Sponsored 2/5/2025

  • Khanna

    CA • D

    Sponsored 2/5/2025

  • Rep. Landsman, Greg [D-OH-1]

    OH • D

    Sponsored 2/5/2025

  • Rep. Larson, John B. [D-CT-1]

    CT • D

    Sponsored 2/5/2025

  • Rep. Lee, Summer L. [D-PA-12]

    PA • D

    Sponsored 2/5/2025

  • Rep. Lieu, Ted [D-CA-36]

    CA • D

    Sponsored 2/5/2025

  • Rep. Lynch, Stephen F. [D-MA-8]

    MA • D

    Sponsored 2/5/2025

  • Rep. Magaziner, Seth [D-RI-2]

    RI • D

    Sponsored 2/5/2025

  • McBath

    GA • D

    Sponsored 2/5/2025

  • McBride

    DE • D

    Sponsored 2/5/2025

  • McCollum

    MN • D

    Sponsored 2/5/2025

  • Rep. McGarvey, Morgan [D-KY-3]

    KY • D

    Sponsored 2/5/2025

  • McGovern

    MA • D

    Sponsored 2/5/2025

  • Rep. Meeks, Gregory W. [D-NY-5]

    NY • D

    Sponsored 2/5/2025

  • Rep. Menendez, Robert [D-NJ-8]

    NJ • D

    Sponsored 2/5/2025

  • Rep. Meng, Grace [D-NY-6]

    NY • D

    Sponsored 2/5/2025

  • Mfume

    MD • D

    Sponsored 2/5/2025

  • Rep. Moulton, Seth [D-MA-6]

    MA • D

    Sponsored 2/5/2025

  • Mrvan

    IN • D

    Sponsored 2/5/2025

  • Rep. Nadler, Jerrold [D-NY-12]

    NY • D

    Sponsored 2/5/2025

  • Rep. Neguse, Joe [D-CO-2]

    CO • D

    Sponsored 2/5/2025

  • Norcross

    NJ • D

    Sponsored 2/5/2025

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 2/5/2025

  • Ocasio-Cortez

    NY • D

    Sponsored 2/5/2025

  • Rep. Omar, Ilhan [D-MN-5]

    MN • D

    Sponsored 2/5/2025

  • Pallone

    NJ • D

    Sponsored 2/5/2025

  • Rep. Perez, Marie Gluesenkamp [D-WA-3]

    WA • D

    Sponsored 2/5/2025

  • Pingree

    ME • D

    Sponsored 2/5/2025

  • Rep. Pocan, Mark [D-WI-2]

    WI • D

    Sponsored 2/5/2025

  • Rep. Pressley, Ayanna [D-MA-7]

    MA • D

    Sponsored 2/5/2025

  • Rep. Ramirez, Delia C. [D-IL-3]

    IL • D

    Sponsored 2/5/2025

  • Rep. Raskin, Jamie [D-MD-8]

    MD • D

    Sponsored 2/5/2025

  • Riley (NY)

    NY • D

    Sponsored 2/5/2025

  • Rep. Ross, Deborah K. [D-NC-2]

    NC • D

    Sponsored 2/5/2025

  • Rep. Ryan, Patrick [D-NY-18]

    NY • D

    Sponsored 2/5/2025

  • Rep. Salinas, Andrea [D-OR-6]

    OR • D

    Sponsored 2/5/2025

  • Rep. Scanlon, Mary Gay [D-PA-5]

    PA • D

    Sponsored 2/5/2025

  • Schakowsky

    IL • D

    Sponsored 2/5/2025

  • Rep. Sherman, Brad [D-CA-32]

    CA • D

    Sponsored 2/5/2025

  • Smith (WA)

    WA • D

    Sponsored 2/5/2025

  • Soto

    FL • D

    Sponsored 2/5/2025

  • Stansbury

    NM • D

    Sponsored 2/5/2025

  • Rep. Stevens, Haley M. [D-MI-11]

    MI • D

    Sponsored 2/5/2025

  • Rep. Sykes, Emilia Strong [D-OH-13]

    OH • D

    Sponsored 2/5/2025

  • Rep. Takano, Mark [D-CA-39]

    CA • D

    Sponsored 2/5/2025

  • Rep. Thanedar, Shri [D-MI-13]

    MI • D

    Sponsored 2/5/2025

  • Thompson (MS)

    MS • D

    Sponsored 2/5/2025

  • Rep. Titus, Dina [D-NV-1]

    NV • D

    Sponsored 2/5/2025

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 2/5/2025

  • Rep. Tokuda, Jill N. [D-HI-2]

    HI • D

    Sponsored 2/5/2025

  • Rep. Tonko, Paul [D-NY-20]

    NY • D

    Sponsored 2/5/2025

  • Rep. Torres, Norma J. [D-CA-35]

    CA • D

    Sponsored 2/5/2025

  • Trahan

    MA • D

    Sponsored 2/5/2025

  • Turner (TX)

    TX • D

    Sponsored 2/5/2025

  • Rep. Vargas, Juan [D-CA-52]

    CA • D

    Sponsored 2/5/2025

  • Rep. Velázquez, Nydia M. [D-NY-7]

    NY • D

    Sponsored 2/5/2025

  • Rep. Wasserman Schultz, Debbie [D-FL-25]

    FL • D

    Sponsored 2/5/2025

  • Rep. Waters, Maxine [D-CA-43]

    CA • D

    Sponsored 2/5/2025

  • Rep. Watson Coleman, Bonnie [D-NJ-12]

    NJ • D

    Sponsored 2/5/2025

  • Rep. Williams, Nikema [D-GA-5]

    GA • D

    Sponsored 2/5/2025

  • Wilson (FL)

    FL • D

    Sponsored 2/5/2025

  • Rep. Torres, Ritchie [D-NY-15]

    NY • D

    Sponsored 2/6/2025

  • Schrier

    WA • D

    Sponsored 2/7/2025

  • Rep. Courtney, Joe [D-CT-2]

    CT • D

    Sponsored 3/4/2025

  • Cisneros

    CA • D

    Sponsored 3/4/2025

  • Levin

    CA • D

    Sponsored 3/5/2025

  • Rep. Suozzi, Thomas R. [D-NY-3]

    NY • D

    Sponsored 3/6/2025

  • Scott, David

    GA • D

    Sponsored 4/24/2025

  • Rep. Sánchez, Linda T. [D-CA-38]

    CA • D

    Sponsored 4/24/2025

  • Simon

    CA • D

    Sponsored 5/7/2025

  • Rep. McDonald Rivet, Kristen [D-MI-8]

    MI • D

    Sponsored 5/21/2025

  • Rep. Sorensen, Eric [D-IL-17]

    IL • D

    Sponsored 9/9/2025

  • Rep. Bell, Wesley [D-MO-1]

    MO • D

    Sponsored 9/18/2025

  • Rep. Harder, Josh [D-CA-9]

    CA • D

    Sponsored 12/4/2025

  • Grijalva

    AZ • D

    Sponsored 2/3/2026

Roll Call Votes

No roll call votes available for this bill.

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