Bill would cut taxes on money U.S. companies earn abroad.

What it does

The bill changes how the U.S. taxes money that American companies make in other countries. It raises the tax break for foreign earnings from 33.34% to 40%. It weakens rules that stop companies from moving profits overseas. It removes some taxes on money foreign subsidiaries earn. It lets companies use certain tax credits to reduce what they owe.

Who it affects

Multinational corporations would pay less in U.S. taxes. Ordinary people and smaller U.S. companies would face a bigger share of the tax burden.

One thing to notice

The bill removes a major rule that stopped U.S. companies from delaying U.S. taxes on profits from selling goods or services through foreign subsidiaries. It also lets companies move valuable property to foreign subsidiaries without paying tax on the gain.

From the analysis of the bill text, linked under Primary records below.

Where it stands

• Sep 16, 2026 — Introduced · Congress.gov: “Introduced in House”
• Sep 16, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Words to know

• foreign subsidiaries — Companies that a U.S. company owns or controls that are set up in other countries.
• tax break — A reduction in the amount of taxes a company must pay to the government.
• multinational corporations — Large companies that do business in the United States and in many other countries.