Bill > HR1062

This bill aims to modify the tax treatment of Foreign-Derived Intangible Income (FDII), a type of income earned by U.S. companies from selling goods or services to foreign customers. Specifically, the bill prevents a scheduled reduction in the tax deduction for FDII by maintaining the deduction rate at 37.5% instead of allowing it to drop to a lower percentage. The technical amendment changes Section 250(a)(3) of the Internal Revenue Code to preserve the current, more generous deduction rate. By doing so, the bill seeks to support U.S. innovation and international competitiveness by providing a continued tax incentive for companies that generate income from intangible assets like intellectual property, research, and development when selling to foreign markets. The amendment would take effect immediately upon the bill's enactment, providing immediate tax relief and certainty for affected businesses.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1062/all-info