HR7493119th CongressWALLET

Stop Corporate Inversions Act of 2026

Sponsored By: Representative Doggett

Introduced

Summary

Treats more foreign corporations as U.S. domestic for tax purposes to tighten rules on corporate inversions and post‑2014 acquisitions. This bill would change the ownership and activity tests that decide when a foreign parent is taxed like a U.S. company.

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  • Multinational acquirers: Raises the surrogate foreign corporation threshold from 60% to 80% for one pathway that can cause a foreign parent to be treated as domestic. This alters which deals can trigger U.S. tax treatment.
  • Former shareholders and acquired businesses: Creates an "inverted domestic corporation" test for deals completed after May 8, 2014. After such an acquisition an entity can be treated as inverted domestic if either more than 50% of stock is held by former shareholders or management and control are primarily in the U.S. and the group has significant U.S. business activity.
  • Tax administration and foreign entities: Defines "significant domestic activities" as at least 25% of employees, U.S. employee pay, assets, or income in the U.S. and gives the Treasury authority to change thresholds and apply management‑location rules based on where executives actually operate.

Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Tighter rules for corporate inversions

This bill would tighten rules that treat foreign parent companies as U.S. corporations for tax purposes. For deals completed after May 8, 2014, a foreign parent that acquires substantially all of a U.S. firm's assets would be treated as U.S.-based if, after the deal, former U.S. owners hold more than 50 percent of the stock by vote or value. The foreign parent would also be treated as U.S.-based if the group's management and control occur mainly in the United States and the group has significant domestic business activities. "Significant domestic business activities" would mean at least 25 percent of the group's employees, employee pay, assets, or income are U.S.-based. The bill would raise the surrogate-foreign-corporation ownership test from 60 percent to 80 percent and limit one prior rule to deals completed after March 4, 2003 and before May 8, 2014. The Treasury Secretary would be able to issue regulations changing thresholds and defining when management is treated as U.S.-based. These changes would apply to taxable years ending after May 8, 2014.

Sponsors & CoSponsors

Sponsor

Doggett

TX • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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