The No Tax Breaks for Outsourcing Act, introduced February 5, 2025, eliminates various tax incentives that allow U.S. corporations to reduce their tax burden by shifting profits or operations overseas. The bill replaces the Global Intangible Low-Taxed Income system with country-by-country tax calculations, repeals the reduced tax rate on foreign-derived profits, strengthens the foreign tax credit limitations, and imposes new interest deduction caps on large multinational corporations. Additionally, the bill treats certain foreign corporations—including those that inverted to escape U.S. taxes and those managed from the U.S.—as domestic corporations subject to full U.S. taxation on worldwide income. All provisions take effect for tax years beginning after December 31, 2024, with the IRS granted a three-year window to assess back taxes on previously inverted corporations.
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