Stop Corporate Inversions Act of 2026
Take action
Record your position on this measure.
Create an account to record your position, submit testimony, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Stop Corporate Inversions Act of 2026 aims to prevent companies from relocating their headquarters to lower-tax jurisdictions through a process called ‘inversion.’ Specifically, it modifies how the Internal Revenue Code treats foreign corporations that acquire domestic businesses, aiming to ensure that companies with significant operations within the United States are not considered ‘inverted’ and therefore subject to different tax rules. The bill seeks to strengthen the definition of what constitutes a domestic corporation for tax purposes, focusing on management and control, employee presence, and asset location within the U.S.
Key provisions
- Reclassifies foreign corporations that acquire substantially all of a domestic corporation or its assets as domestic corporations if they meet certain criteria related to management and control.
- Establishes a threshold of 25% for employee presence, compensation, assets, and income within the U.S. to determine ‘significant domestic business activities.’
- Defines ‘inverted domestic corporation’ based on stock ownership by former shareholders or partners, and the location of management and control.
- Requires that more than 50% of the stock of an inverted corporation be held by former shareholders or partners, or that management and control occur primarily within the U.S.
- Provides for regulations to determine management and control, with a focus on executive officers and senior management being based in the U.S.
- Allows the Secretary of the Treasury to adjust the thresholds for determining significant domestic business activities.
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours