H.R. 7509, the Deterring Adversarial Access to Americans' Data Act, amends the federal tax code to penalize U.S. businesses that use technology controlled by foreign adversaries—such as certain Chinese, Russian, Iranian, or North Korean entities. The bill denies these companies several valuable tax benefits, including bonus depreciation (accelerated deductions for equipment), full expensing of research costs, research and development tax credits, and certain business interest deductions. The legislation defines "foreign adversary-controlled technology" broadly to include any information technology or service designed by hostile foreign governments or entities, as well as systems dependent on such technology for core functions. The restrictions apply to taxable years beginning one year after the bill's enactment, giving businesses a transition period to comply. While the bill contains no new direct federal spending, it reduces tax revenue by limiting deductions and credits for affected companies.
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