Deterring Adversarial Access to Americans’ Data Act

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.