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Congress·In Committee·19 days ago

House Bill Would Strip Tax Breaks From Firms Using Chinese, Russian Tech

Also known as: Deterring Adversarial Access to Americans’ Data Act

Legislative Progress

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Impact Analysis

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

Key Points

  • This bill would change tax laws to stop businesses from getting tax breaks if they use technology made by foreign adversaries. This includes hardware, software, and cloud services designed or provided by countries that are considered rivals to the United States.
  • Companies would no longer be able to use 'bonus depreciation'—a common tax break for buying equipment—to lower their taxes when they purchase technology from these foreign sources. They would also lose tax deductions for money spent on research and development if that work involves technology from these restricted countries.
  • The goal of this policy is to protect American data and national security. By making it more expensive for companies to use technology from foreign rivals, the government aims to encourage businesses to switch to safer technology made in the U.S. or by allied nations.
  • This would primarily affect U.S. businesses that rely on tech components or services from countries like China or Russia. It also targets 'foreign-influenced' companies by taking away their ability to claim special tax credits for doing research in the United States.
  • If this bill becomes law, the new tax rules would start one year later. This delay is intended to give companies time to change their suppliers and find new technology that doesn't come from foreign adversaries.
TaxesTechnology DigitalNational Security Foreign Policy

Milestones

2 milestones2 actions
Feb 11, 2026House

Referred to the House Committee on Ways and Means.

Feb 11, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

One year after enactment (if passed)

New tax penalties take effect for businesses using foreign adversary technology

Companies that still use tech from foreign adversaries like China or Russia would start losing tax breaks including bonus depreciation, R&D deductions, and research tax credits. This could mean higher tax bills for affected businesses.

Related News

2 articles
Bloomberg Tax·19 days ago

US Company Ties to Foreign Adversaries Targeted in GOP Tax Bill

Rep. Nathaniel Moran (R-Texas) introduced legislation to prevent businesses from claiming bonus depreciation, R&D expensing, and credits if they use technology controlled by foreign adversaries, aiming to pressure companies in energy and utility sectors to sever ties with China-linked software.

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MeriTalk·14 days ago

New Legislation Denies Tax Incentives to Companies Using Adversarial Technology

The Deterring Adversarial Access to Americans' Data Act would close a gap in the Internal Revenue Code by extending Foreign Entity of Concern (FEOC) restrictions to major business tax incentives, including bonus depreciation and research tax credits.

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Source Information

Document Type

Congressional Bill

Official Title

Deterring Adversarial Access to Americans’ Data Act

Bill NumberHR 7509
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.