The AI Tax and Work Protection Act imposes a new excise tax on companies that develop or sell artificial intelligence foundation models, with rates that increase based on the national unemployment level. The revenue generated from this tax is placed into a dedicated trust fund to finance a new federal jobs program administered by a newly created Office of Job Creation within the Department of Labor. This program awards grants to state, local, and tribal governments to hire permanent, full-time workers for specific public service roles, such as in education, healthcare, infrastructure, and community safety. To ensure the jobs created do not replace existing workers, the bill includes strict nondisplacement rules and mandates that grant recipients provide employees with strong labor protections, including collective bargaining rights, competitive wages, and paid leave. Additionally, the legislation directs the Bureau of Labor Statistics to study the impact of AI on the workforce and establishes an advisory committee to guide the implementation of the job creation initiatives.
The Curtailing Executive Overcompensation (CEO) Act imposes a new excise tax on large companies where the highest-paid CEO earns significantly more than the median worker. This tax applies to employers with over $100 million in annual revenue and over $10 million in wages, charging a fee equal to the lesser of 1% of the pay gap or 1% of the company's gross receipts. The law defines the pay gap as the difference between the CEO's average compensation and 50 times the median wage of all employees earning at least $5,000, with thresholds adjusted for inflation after 2027. Companies found to be manipulating their workforce to avoid the tax could face joint liability, and the IRS will issue regulations to prevent such avoidance.
The Small Business and Consumer Credit Act of 2026 changes how certain financial institutions can use tax losses to offset future profits. It allows these banks to carry forward net operating losses for up to 20 years, with additional rules allowing them to carry losses back to previous years starting in 2028. The law specifically applies to independent banks and certain affiliated groups, requiring them to make an irrevocable election on their tax returns to use these new provisions.
This bill creates the American A.I. Sovereign Wealth Fund by imposing an excise tax on large artificial intelligence companies, requiring them to transfer 50% of their equity to a new government trust. The legislation defines "applicable AI companies" as those with over $200 million in annual revenue from AI data centers, computing infrastructure, services, or advanced robotics. A newly established Independent Commission for Democratic AI would manage the fund's assets and use its voting rights to influence corporate governance, aiming to ensure the technology benefits the public. Additionally, the bill mandates that these companies undergo structural separation to operate solely in AI-related activities and prohibits the fund from using its resources to bail out any struggling firms.
The Business Activity Tax Simplification Act of 2026 updates federal rules to clarify when states can tax businesses operating across state lines, primarily affecting interstate companies and digital service providers. It expands the definition of taxable activities to include digital goods and services while clarifying that independent contractors do not create tax liability for their principal companies. The bill also establishes a minimum physical presence requirement, stating that states generally cannot tax businesses unless they have employees, agents, or property in the state for at least 15 days. Additionally, the law extends existing federal protections against state taxation to various "other business activity taxes" and provides specific guidelines for how states should calculate taxes on groups of affiliated companies. These changes are designed to take effect for taxable periods starting on or after January 1, 2026.
This bill proposes to exempt qualified religious institutions from a federal excise tax on excess investment income. To qualify for this exemption, an institution must be established after 1776, have at least 25% of its governing body appointed by or required to be members of a recognized religious organization, and maintain a mission statement based on religious beliefs. The changes would take effect for tax years beginning after December 31, 2025, with the Treasury Department required to issue guidance by the end of 2026.
This bill temporarily suspends a portion of the federal fuel excise tax when the national average price of gasoline rises above $3.99 per gallon. Instead of reducing government revenue, the money saved from this tax cut is transferred back into the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. Additionally, the legislation disallows certain tax credits and deductions for oil and gas companies for costs incurred or production occurring during these high-price months. These changes would only take effect for taxable years beginning after December 31, 2025.
The Diesel Prices Relief Act of 2026 eliminates the federal excise tax on diesel fuel for a period ending on January 1, 2027, directly affecting drivers and businesses that use diesel. To offset the lost revenue, the bill requires the Treasury Secretary to transfer money from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. The legislation also mandates that fuel producers and dealers pass these savings immediately to consumers and gives the Treasury authority to enforce this requirement.
HR 8803 establishes a temporary excise tax on crude oil extracted or imported into the United States by large producers, defined as those extracting or importing more than 100,000 barrels daily. The tax rate is calculated based on the price of West Texas Intermediate oil exceeding $75 per barrel and applies only until hostilities with Iran cease, the Strait of Hormuz is fully reopened, and oil prices fall below that threshold. Revenue generated from this tax is placed into a dedicated trust fund to finance gasoline price rebates for eligible U.S. individuals starting in 2026. The legislation also includes provisions to ensure that U.S. territories with their own tax systems receive appropriate funding or credits to offset the impact of these changes.
This bill, known as the PFAS Cleanup Act, aims to address the health and economic costs of per- and polyfluoroalkyl substances by introducing two main financial mechanisms. First, it imposes a 45% excise tax on the sale of PFAS chemicals by manufacturers, producers, and importers starting in 2027. Second, it creates a tax credit for public water systems that spend money removing PFAS from drinking water when contamination levels exceed EPA safety limits. The revenue from the tax is intended to help fund cleanup efforts, while the credit encourages water providers to remediate hazardous pollution.
