Congress·In Committee·S. 3027

Interstate Commerce Simplification Act of 2025

Taxes: Protecting Out-of-State Businesses from State Income Tax

Oct 22, 2025·View on Congress.gov·Read full text

This bill is one vehicle in a longer effort. See the full story across every version.View effort →

Next up: A senate committeeNo action in 8 months

The Interstate Commerce Simplification Act of 2025 is currently in the early stages of the legislative process. It was recently introduced in the Senate and sent to the Committee on Finance for review. No further actions are scheduled at this time, and the bill is considered to be actively moving.

Legislative Progress

Senate

House

President

Law

Unlikely to pass

This bill faces a difficult path because it would reduce tax revenue for state governments, which usually leads to strong opposition from governors and state-level officials.

How we got here

This bill’s path across every version that has carried it.

Reintroduced
Reintroduced from S. 5158 (118th), which died when its Congress ended.
S. 5158 (118th) →

Key Points

This bill changes the rules for when a state can charge income tax to a business based in a different state. Currently, states are mostly blocked from taxing companies that only send people into the state to ask customers to buy physical goods.
The new rule would expand the definition of what it means to ask for orders. It would protect more types of business activities from being taxed by a state, even if those activities do more than just help make a sale.
This change aims to make it easier and cheaper for companies to do business across state lines. It would reduce the amount of paperwork and tax money businesses have to deal with when they operate in multiple states.
If this becomes law, states might see a decrease in the tax money they collect from large companies. This could lead to debates between the federal government and state leaders who rely on that money for local services.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Milestones

2 milestones2 actions

Oct 22, 2025Senate

Read twice and referred to the Committee on Finance.

Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.

Oct 22, 2025

Introduced in Senate

The bill was officially filed and given a number. It now enters the legislative queue.

No votes or news coverage recorded for this bill yet.

Source Information

Document Type

Congressional Bill

Official Title

Interstate Commerce Simplification Act of 2025

Bill NumberS 3027

Congress119th Congress

ChamberSenate

Latest ActionRead twice and referred to the Committee on Finance.

Data Sources

Congress.gov

Official legislative information

Read Full Bill Text

Sponsor

Analysis generated by AI. Always verify with official sources.