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HR 4581 114th Congress House

Stop Corporate Earnings Stripping Act of 2016

Official title: To amend the Internal Revenue Code of 1986 to prevent earnings stripping of corporations which are related to inverted corporations.

Introduced: February 23, 2016 See on congress.gov
Taxation Corporate finance and managementForeign and international corporationsIncome tax deductionsInterest, dividends, interest rates
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This bill died when the 114th Congress ended
It never became law before the 114th Congress (2015–2016) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 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
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 Latest action February 23, 2016

Referred to the House Committee on Ways and Means.

 Plain-English summary Congressional Research Service

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.

 Related & companion bills 1
  • S 2666 Related bill Corporate Inverters Earnings Stripping Reform Act of 2016
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Cosponsors 2
All 2 Democratic 2
D
Thompson, Mike
California · Feb 23, 2016
 D
Van Hollen, Chris
Maryland · Feb 23, 2016
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 4581: Stop Corporate Earnings Stripping Act of 2016. 114th Congress. Open America. https://openamerica.io/bill/114-HR-4581/
MLA
"H.R. 4581: Stop Corporate Earnings Stripping Act of 2016." 114th Congress, 2026, Open America, https://openamerica.io/bill/114-HR-4581/.
Bluebook (legal)
H.R. 4581, 114th Cong. (2026), https://openamerica.io/bill/114-HR-4581/.
Markdown link
[H.R. 4581: Stop Corporate Earnings Stripping Act of 2016](https://openamerica.io/bill/114-HR-4581/)
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