summary
Introduced
07/26/2017
07/26/2017
In Committee
07/26/2017
07/26/2017
Crossed Over
Passed
Dead
12/31/2018
12/31/2018
Introduced Session
115th Congress
Bill Summary
Stop Corporate Inversions Act of 2017 This bill amends the Internal Revenue Code to revise rules for the taxation of inverted corporations (i.e., U.S. corporations that acquire foreign companies to reincorporate in a foreign jurisdiction with income tax rates lower than the United States). The bill provides that a foreign corporation that acquires the properties of a U.S. corporation or partnership after May 8, 2014, shall be treated as an inverted corporation and thus subject to U.S. taxation if, after such acquisition: (1) it holds more than 50% of the stock of the new entity (expanded affiliated group), or (2) the management or control of the new entity occurs primarily within the United States and the new entity has significant domestic business activities.
AI Summary
This bill amends the Internal Revenue Code to revise the rules for the taxation of inverted corporations. An "inverted corporation" refers to a U.S. corporation that acquires a foreign company to reincorporate in a foreign jurisdiction with lower income tax rates than the United States. The bill provides that a foreign corporation that acquires the properties of a U.S. corporation or partnership after May 8, 2014, shall be treated as an inverted corporation and thus subject to U.S. taxation if more than 50% of the stock of the new entity is held by former shareholders or partners of the U.S. entity, or if the management and control of the new entity primarily occurs within the U.S. and the new entity has significant domestic business activities. The bill also includes provisions for determining when a foreign corporation has "substantial business activities" in the foreign country where it is organized, to be exempted from the inverted corporation treatment.
Committee Categories
Budget and Finance
Sponsors (13)
Dick Durbin (D)*,
Tammy Baldwin (D),
Sherrod Brown (D),
Tammy Duckworth (D),
Dianne Feinstein (D),
Al Franken (D),
Mazie Hirono (D),
Patrick Leahy (D),
Jeff Merkley (D),
Jack Reed (D),
Chris Van Hollen (D),
Elizabeth Warren (D),
Sheldon Whitehouse (D),
Last Action
Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S4301-4302) (on 07/26/2017)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
---|---|
State Bill Page | https://www.congress.gov/bill/115th-congress/senate-bill/1636/all-info |
BillText | https://www.congress.gov/115/bills/s1636/BILLS-115s1636is.pdf |
Bill | https://www.congress.gov/115/bills/s1636/BILLS-115s1636is.pdf.pdf |
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