Stop Corporate Inversions Act of 2026
Sponsored By: Senator Durbin, Richard J. [D-IL]
Introduced
Summary
Tighten rules that block corporate tax inversions. This bill would rewrite how "inverted" corporations are treated for U.S. tax law and raise ownership and activity tests so more companies stay tied to U.S. tax rules.
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- Raises the surrogate foreign corporation test from 60 percent to 80 percent and says a foreign company counts as domestic if it meets that modified surrogate test or qualifies as an "inverted domestic corporation".
- Defines an "inverted domestic corporation" for transactions after May 8, 2014 that acquire substantially all of a U.S. firm's assets and then end up with either more than 50 percent of stock held by former U.S. owners or whose group's management and control is primarily in the United States with significant domestic business activities.
- Creates a foreign-activity exception based on "substantial business activities" rules in effect Jan 18, 2017 while allowing Treasury to raise that bar. It defines "significant domestic business activities" as at least 25 percent of U.S.-based employees, U.S. employee compensation, U.S. assets, and U.S. income, makes conforming tax code changes, and applies to taxable years ending after May 8, 2014.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Stricter rules for corporate inversions
This bill would tighten rules that stop U.S. companies from becoming foreign for tax purposes. A foreign parent would be treated as a U.S. company when, after a deal completed after May 8, 2014, former U.S. owners hold more than 50% of the stock. It would also apply if the combined group is run mainly in the United States and has "significant domestic business" (at least 25% on employees, U.S. pay, U.S. assets, or U.S. income by the bill's tests). The bill would raise one ownership threshold from 60% to 80%, allow a Treasury rulemaking backstop, and apply to taxable years ending after May 8, 2014.
Sponsors & CoSponsors
Sponsor
Durbin, Richard J. [D-IL]
IL • D
Cosponsors
Sen. Reed, Jack [D-RI]
RI • D
Sponsored 2/11/2026
Sen. Van Hollen, Chris [D-MD]
MD • D
Sponsored 2/11/2026
Sen. Warren, Elizabeth [D-MA]
MA • D
Sponsored 2/11/2026
Sen. Whitehouse, Sheldon [D-RI]
RI • D
Sponsored 2/11/2026
Sen. Blumenthal, Richard [D-CT]
CT • D
Sponsored 2/11/2026
Sen. Duckworth, Tammy [D-IL]
IL • D
Sponsored 2/11/2026
Sen. Hirono, Mazie K. [D-HI]
HI • D
Sponsored 2/11/2026
Sen. Sanders, Bernard [I-VT]
VT • I
Sponsored 2/11/2026
Sen. Baldwin, Tammy [D-WI]
WI • D
Sponsored 2/11/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov