U.S. Innovation and Global Competitiveness Act of 2026

This bill would change several federal tax rules for U.S. companies that earn income abroad or make payments to related foreign companies, mostly starting with tax years that begin after December 31, 2026. It would raise the deduction for foreign-derived intangible income from 33.34 percent to 40 percent and remove the rule that limits foreign tax credits on certain foreign subsidiary income to 90 percent of taxes paid. It would change the base erosion minimum tax, including exempting payments to related foreign companies taxed at an effective rate of at least 18.9 percent, unless the company is in a country with a digital services tax or a similar tax. It would also let companies carry forward certain foreign subsidiary losses, stop taxing some foreign sales and services income under current anti-deferral rules, and allow all taxpayers to use the research credit in the same way small businesses can now.

Full text and official record on Congress.gov

Sponsors

• Ron Estes Republican sponsor
• 0 cosponsors