Bill > S2976

This bill, known as the "Halting International Relocation of Employment Act" or "HIRE Act", introduces a comprehensive set of measures to discourage companies from outsourcing jobs to foreign countries. The bill imposes a 25% excise tax on payments made by U.S. businesses to foreign entities for services benefiting U.S. consumers, defining these as "outsourcing payments". The tax applies to premiums, fees, royalties, and service charges paid to foreign persons for labor or services primarily directed at U.S. consumers. If services are split between U.S. and international consumers, the tax will be proportionally calculated. The bill establishes a new "Domestic Workforce Fund" in the U.S. Treasury, which will receive the revenue generated from this tax. The fund will be used to support workforce development and retraining programs, apprenticeship initiatives, and grants to states for job displacement assistance. Additionally, the bill prohibits businesses from claiming tax deductions for these outsourcing payments and introduces increased penalties for failing to pay the new tax. These provisions are set to take effect for payments made after December 31, 2025, and aim to incentivize companies to maintain and create jobs within the United States.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2976/all-info