Bill · H.R. 7493· House(119-HR-7493)
Stop Corporate Inversions Act of 2026
- Introduced
- 2/11/2026
- Last activity
- 2/11/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Lloyd Doggett
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The ``Stop Corporate Inversions Act of 2026'' aims to modify the Internal Revenue Code regarding inverted corporations. It changes how certain foreign corporations are treated as domestic corporations for tax purposes. Specifically, it adjusts the threshold for surrogate foreign corporations and establishes new rules for inverted domestic corporations. These rules consider factors like the acquisition of domestic properties or partnerships and the location of management and control. It also defines what constitutes significant domestic business activities based on employees, assets, or income.
Yes
Does this raise the taxes companies pay?+6
The bill reclassifies certain foreign-based corporations as domestic corporations for tax purposes, which increases their tax liability.
Does this make the government pay for what it commits to?+3
By closing loopholes used by inverted corporations, the bill aims to ensure more corporate revenue is captured by the federal government.
The opposite
Would high-income households be better off under this?-4
The increased tax treatment for large inverted corporations may negatively affect the wealth of high-income shareholders in those entities.
Would business owners be better off under this?-3
Large corporate entities seeking to avoid US taxes through inversions will face a higher tax burden under these rules.
Who it would affect, and how
Potential Positive Impacts for People
-
Reclassification of Foreign Corporations as Domestic: Under Section 2(a)(1)(A), a foreign corporation may be treated as a domestic corporation if it meets a higher threshold of 80 percent for a surrogate foreign corporation. This change modifies how the tax code treats these entities.
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Clearer Definition of Management and Control: Section 2(a)(4)(B) provides specific criteria for determining if management and control occurs primarily within the United States by looking at where executive officers and senior management are located. This applies regardless of their formal job titles.
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Defined Criteria for Domestic Business Activity: Section 2(a)(5) establishes a specific 25 percent threshold for determining if an expanded affiliated group has significant domestic business activities based on employees, compensation, assets, or income.
Potential Negative Impacts for People
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Increased Tax Treatment for Inverted Corporations: Under Section 2(a)(1), certain foreign corporations will be treated as domestic corporations for the purposes of the Internal Revenue Code. This occurs if they acquire substantially all properties of a domestic corporation or partnership and meet specific stock holding or management control requirements.
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Burden of Management and Control Determination: Section 2(a)(4) requires the Secretary to prescribe regulations to determine if management and control occurs primarily within the United States, which could affect how expanded affiliated groups are treated.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Increases Corporate Taxes+6Improves Fiscal Responsibility+3
- Demographic And Interest Groups
- Good For High Income Households-4Good For Business Owners-3
- 2/11/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House
4 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.