Makes it harder for companies to avoid U.S. taxes by moving their headquarters abroad.
This bill would change tax rules to make it more difficult for U.S. companies to avoid paying U.S. taxes by reincorporating in a foreign country. It would expand the definition of a company that is treated as American for tax purposes, even if it's technically based overseas. These changes would apply to tax years going back to May 8, 2014.
Today, a foreign company that acquires a U.S. business is treated as a U.S. company for tax purposes if former U.S. owners hold 60% or 80% of the new company, depending on its foreign business activities. After this bill, a foreign company would be treated as a U.S. company if former U.S. owners hold 80% or more, or if it meets a new definition of an "inverted domestic corporation" based on a 50% ownership threshold or primary U.S. management and significant U.S. business activities. These changes would apply retroactively to tax years ending after May 8, 2014.
HR 7493 · 119th Congress · February 11, 2026 · AI Summary by gemini-2.5-flash · 4/10
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