Deterring Adversarial Access to Americans’ Data Act
House Bill Would Strip Tax Breaks From Firms Using Chinese, Russian Tech
Legislative Progress
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.
Impact Analysis
Personal Impact
Life & Work
Small businesses that rely on cheaper technology products from foreign adversaries (like certain Chinese-made hardware, software, or cloud services) would lose key tax breaks if they continue using that tech. This includes losing bonus depreciation on equipment purchases and research tax credits, which could significantly raise their effective tax bills and force costly transitions to alternative technology providers.
Activities
Broader Impacts
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articles
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.
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.
Source Information
Document Type
Congressional Bill
Official Title
Deterring Adversarial Access to Americans’ Data Act
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.