Bill > HR7493

This bill, titled the "Stop Corporate Inversions Act of 2026," aims to modify the rules governing "inverted corporations" by amending the Internal Revenue Code of 1986. An inverted corporation is generally a U.S. company that reincorporates in a lower-tax foreign country while maintaining significant business operations and management in the U.S., often to avoid U.S. taxes. The bill proposes to treat certain foreign corporations as domestic corporations if they meet specific criteria, effectively preventing companies from using inversions to escape U.S. taxation. Specifically, a foreign corporation will be considered an "inverted domestic corporation" if, after May 8, 2014, it acquires substantially all the properties or assets of a domestic corporation or partnership, and either more than 50 percent of its stock is held by former shareholders or partners of the acquired domestic entity, or its management and control, along with significant domestic business activities, are primarily located within the United States. The bill also includes an exception for foreign corporations with substantial business activities in their country of organization and provides detailed definitions for "management and control" and "significant domestic business activities," including specific percentage thresholds for U.S.-based employees, compensation, assets, and income. These changes are intended to apply to taxable years ending after May 8, 2014.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/7493/all-info