HR 4581
114th Congress
House
Taxation
Corporate finance and management
Foreign and international corporations
Income tax deductions
Interest, dividends, interest rates
Stop Corporate Earnings Stripping Act of 2016
Introduced: February 23, 2016
See on congress.gov
Everywhere this bill has been
2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Feb 23, 2016
Referred to the House Committee on Ways and Means.
Feb 23, 2016
Introduced in House
Plain-English summary
Stop Corporate Earnings Stripping Act of 2016
This bill amends the Internal Revenue Code to limit the tax deduction available to certain foreign-controlled U.S. multinational corporations for excess interest on debt incurred by such corporation (i.e., earnings stripping) by: (1) repealing the debt-to-equity ratio threshold required for such deduction, (2) reducing the permitted net interest expense threshold from 50% to 25% of the corporation's adjusted taxable income, (3) repealing the carryforward of excess amounts of interest, and (4) limiting to five years the carryforward of disallowed interest expense.
What's happening now
Referred to the House Committee on Ways and Means.
Committees of jurisdiction
1