No Tax Deductions for Outsourcing
Official: To amend the Internal Revenue Code of 1986 to deny deduction for outsourcing payments.
This bill prevents businesses from lowering their taxable income by deducting payments made to foreign companies for services that help U.S. consumers. It aims to discourage outsourcing by increasing costs for companies that rely on foreign labor.
1. This bill stops businesses from deducting costs for outsourcing payments. 2. Outsourcing payments include fees paid to foreign companies for services. 3. The bill targets payments that benefit consumers in the United States. 4. It applies to payments made after December 31, 2025. 5. Mixed payments to foreign companies will have limited deductions based on U.S. consumer benefit.
This bill affects businesses that outsource services to foreign companies.