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US HB7559

Bill

Official Source

Status

Introduced

2/12/2026

Primary Sponsor

Austin Scott

Click for details

Origin

House of Representatives

119th Congress

AI Summary

  • Denies income tax deductions for "outsourcing payments" made to foreign persons for labor or services benefiting U.S. consumers
  • Defines outsourcing payments as premiums, fees, royalties, service charges, or other payments made in the course of business to foreign persons
  • Provides pro-rata calculation for mixed payments where services benefit consumers both within and outside the United States
  • Excludes corporations and partnerships organized under U.S. territorial laws from the definition of "foreign person"
  • Applies to payments made after December 31, 2025, in taxable years ending after that date

Legislative Description

To amend the Internal Revenue Code of 1986 to deny deduction for outsourcing payments.

Taxation

Last Action

Referred to the House Committee on Ways and Means.

2/12/2026

Committee Referrals

Ways And Means2/12/2026

Full Bill Text

No bill text available