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To amend the Internal Revenue Code of 1986 to repeal the scheduled reduction in the deduction for foreign-derived intangible income.
2/22/2025, 9:06 AM
Summary of Bill HR 1062
The bill seeks to repeal the scheduled reduction in the deduction for foreign-derived intangible income, which is income derived from intangible assets such as patents, trademarks, and copyrights that are sold or licensed to foreign customers. Currently, there is a deduction available for this type of income, but there is a scheduled reduction in the deduction that this bill aims to repeal.
The purpose of this bill is to encourage businesses to keep their intellectual property in the United States and to promote economic growth by incentivizing companies to invest in research and development. By repealing the reduction in the deduction for foreign-derived intangible income, the bill aims to make the United States a more attractive location for businesses to conduct their operations and create jobs. Overall, the bill is focused on making changes to the tax code that will benefit businesses and promote economic growth in the United States. It is important to note that this summary is non-partisan and focuses on the factual details of the bill.
Congressional Summary of HR 1062
Growing and Preserving Innovation in America Act of 2025
This bill makes permanent the increased percentage rates at which a domestic corporation may deduct (for federal tax purposes) foreign-derived intangible income and global intangible low-taxed income (GILTI).
As background, for tax years beginning after 2017 and before 2026, a domestic corporation generally is allowed a tax deduction equal to the sum of (1) 37.5% of the corporation’s foreign-derived intangible income, and (2) 50% of the corporation’s GILTI and any dividends that are attributable to the corporation’s GILTI. However, under current law, the tax deduction decreases starting in 2026, to the sum of (1) 21.875% of the corporation’s foreign-derived intangible income, and (2) 37.5% of the corporation’s GILTI and any dividends that are attributable to the corporation’s GILTI.
Under the bill, for tax years beginning in 2026, a domestic corporation generally may claim a tax deduction equal to the sum of (1) 37.5% of the corporation’s foreign-derived intangible income, and (2) 50% of the corporation’s GILTI and any dividends that are attributable to the corporation’s GILTI.
Current Status of Bill HR 1062
Bipartisan Support of Bill HR 1062
Total Number of Sponsors
1Democrat Sponsors
0Republican Sponsors
1Unaffiliated Sponsors
0Total Number of Cosponsors
1Democrat Cosponsors
1Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 1062
Primary Policy Focus
Alternate Title(s) of Bill HR 1062
Comments
Julia Raynor
1 year ago
I don't understand why they want to change this bill. It seems like it will only benefit big corporations and not regular people like me. How will this affect my taxes?
Milani Boswell
1 year ago
I don't get why they wanna mess with this bill. Seems like it could cause some problems for us regular folks. Just doesn't sit right with me, ya know? #confused
