Congress·In Committee·H.R. 7493

Congress Proposes Bill to Stop U.S. Companies from Moving Overseas for Lower Taxes

Stop Corporate Inversions Act of 2026

about 1 month ago·View on Congress.gov

Part of: Congress Targets Inverted Corporations with Contract Bans and Tax Reclassification

Legislative Progress

House

Senate

President

Law

Key Points

This bill aims to stop 'corporate inversions,' which happens when a U.S. company merges with a foreign company and moves its legal headquarters to another country just to pay lower taxes.
Under these new rules, a company would still be treated as a U.S. company for tax purposes if its original American owners still hold more than 50% of the stock after the merger.
A company would also be forced to pay U.S. taxes if its top executives and managers are still based in the United States and at least 25% of its employees, pay, or assets remain in the country.
The policy is designed to ensure that large corporations that still run their businesses from America cannot skip out on their tax bills simply by changing their mailing address to a foreign country.
If this becomes law, the rules would apply to any company that made these types of moves as far back as May 2014, which could result in some companies owing significant amounts in back taxes.

TaxesEconomy Finance

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Broader Impacts

DomainScoreShort-termLong-termReversibilityConfidence

Score

Scores: -5 (harmful) to +5 (beneficial)Short-term: 0-2 yearsLong-term: 10-30 years

Milestones

2 milestones2 actions

Feb 11, 2026House

Referred to the House Committee on Ways and Means.

Feb 11, 2026

Introduced in House

Related News

4 articles

The Hill·about 1 month ago

Durbin, Reed, Doggett Reintroduce Bill to Close Corporate Tax Inversion Loopholes

Senate Democrats on Wednesday reintroduced the Stop Corporate Inversions Act, a measure aimed at preventing U.S. companies from shifting their tax domicile abroad. The bill would treat merged firms as domestic if original owners retain more than 50% control of the new entity.

Bloomberg News·about 1 month ago

Business Groups Warn of M&A Chill from Proposed Tax Inversion Crackdown

Industry advocates are pushing back against the Stop Corporate Inversions Act of 2026, arguing it could disadvantage U.S. firms in the global market. The bill requires at least 25% of a company's workforce and assets to be outside the U.S. for it to be considered foreign for tax purposes.

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Politico·about 1 month ago

Democrats Seek to Reverse 'Tax Flight' as Midterm Campaigning Begins

The reintroduction of the Stop Corporate Inversions Act comes as Democrats look for ways to hammer Republicans on corporate accountability. The bill targets 'paper' moves abroad where management and significant operations remain in the United States.

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