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Bill > HR5109


US HR5109

US HR5109
DITCH Act Dump Investments in Troublesome Communist Holdings Act


summary

Introduced
08/01/2023
In Committee
08/01/2023
Crossed Over
Passed
Dead
01/03/2025

Introduced Session

118th Congress

Bill Summary

A BILL To impose restrictions on the investment in Chinese companies by tax-exempt entities.

AI Summary

This bill, the Dump Investments in Troublesome Communist Holdings Act (DITCH Act), proposes to impose restrictions on the investment in Chinese companies by tax-exempt entities. The key provisions include: (1) prohibiting tax-exempt organizations from holding any interest in a "disqualified Chinese company" (defined as a company incorporated in China or with over 10% Chinese government or Communist Party ownership); (2) requiring tax-exempt organizations to annually report their investments in disqualified Chinese companies; (3) allowing the Secretary of the Treasury to grant waivers to this prohibition under certain conditions, such as if the need for the investment outweighs the threat posed by China; and (4) requiring the Secretary to publish a list of certified pooled investments that do not have exposure to disqualified Chinese companies. The amendments would apply to taxable years ending after the bill's enactment, with a 270-day grace period for organizations unaware of their noncompliance.

Committee Categories

Budget and Finance

Sponsors (4)

Last Action

Referred to the Committee on Ways and Means, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (on 08/01/2023)

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