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.
If you work for a company that outsources services, it might face higher costs, which could impact jobs or wages.
Who this affects
businesses · foreign companies
What changes is this bill making?
1This bill stops businesses from deducting costs for outsourcing payments.
2Outsourcing payments include fees paid to foreign companies for services.
3The bill targets payments that benefit consumers in the United States.
4It applies to payments made after December 31, 2025.
5Mixed payments to foreign companies will have limited deductions based on U.S. consumer benefit.
