Budget & Taxes (Business Taxes)

The U.S. Innovation and Global Competitiveness Act of 2026 amends federal tax laws to adjust how multinational corporations are taxed on foreign earnings, primarily by increasing the deduction rate for foreign-derived intangible income from 33.34 percent to 40 percent. The bill modifies the base erosion minimum tax by exempting certain payments made to foreign entities that face a high effective tax rate or operate in jurisdictions with discriminatory taxes, such as digital services taxes. It also eliminates specific inclusions of foreign base company sales and services income while allowing corporations to carry forward net tested losses from controlled foreign corporations for up to five years. Additionally, the legislation expands the research tax credit to all taxpayers rather than just small businesses and provides special rules for transferring intangible property from foreign subsidiaries to U.S. shareholders.

This bill, titled the No Federal Tax Dollars for Illegal Aliens Health Insurance Act of 2026, amends the Affordable Care Act to restrict the use of federal taxpayer funds for health insurance coverage. It directly affects states that receive funding under the ACA and individuals seeking health insurance coverage through federal programs. The key provision prohibits states from using pass-through funding to pay for health insurance or related benefits for individuals who are not U.S. citizens, nationals, or lawfully present aliens. Additionally, the bill requires the Secretary of Health and Human Services to rescind any existing waivers that would have allowed such funding for unauthorized individuals had the new restrictions been in place at the time of approval.

This joint resolution reinstates provisions of District of Columbia (DC) tax law to conform with federal tax law. As background, DC generally automatically adopts changes to federal tax law (known as rolling conformity). Therefore, upon enactment of the 2025 reconciliation act (commonly known as the One Big Beautiful Bill Act), many of its tax provisions became DC law. DC subsequently enacted its own legislation (the DC Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025) that decoupled DC tax law from these federal provisions. This joint resolution nullifies the DC legislation, thereby generally realigning DC tax law with the tax provisions of the 2025 reconciliation act. Specifically, the joint resolution reinstates for DC provisions that •    increase the higher basic standard deduction; •    increase deductible charitable cash contributions (for taxpayers who take the standard deduction); •    establish a $6,000 tax deduction for taxpayers 65 years and older; •    allow a tax deduction of qualified tips, qualified overtime pay, and qualified car loan interest; •    authorize an elective 100% depreciation allowance for nonresidential real property; and •    authorize businesses to deduct 100% of research and experimental costs retroactive to tax year 2022. The DC legislation also amended several other provisions of DC tax law, including restoring the DC child tax credit. The joint resolution negates these changes.

HR 549 repeals a tax credit for clean fuel production from the Internal Revenue Code. It directly affects companies that produce clean fuel, removing a financial incentive they previously received. The bill eliminates Section 45Z of the tax code, which provided this credit, meaning businesses will no longer qualify for this specific tax benefit. The repeal takes effect for tax years beginning after December 31, 2024.

The ELITE Vehicles Act repeals federal tax credits for purchasing new electric vehicles, used clean vehicles, and commercial clean vehicles. It also eliminates the tax credit for installing electric vehicle charging infrastructure. These changes apply to vehicles purchased or with a binding contract entered into 30 days after the bill's enactment. The bill directly affects consumers and businesses that previously used these credits to offset the cost of electric vehicles and charging stations.

This bill creates a tax incentive for U.S. corporations to distribute company stock to employees. To qualify, corporations must have 500+ full-time U.S. employees, be U.S.-domiciled, and meet specific share distribution requirements (e.g., distributing at least 1% of shares to employees or maintaining a 5% "SHARE ratio" of shares granted). Eligible corporations receive a 3% reduction in corporate income tax and can deduct the fair market value of distributed stock. Employee stock received under these plans is excluded from taxable income, directly benefiting workers at qualifying companies while lowering tax liability for the corporations.

The ELITE Vehicles Act repeals three key tax credits for electric vehicles under the Internal Revenue Code: the clean vehicle credit (Section 30D), the credit for previously-owned clean vehicles (Section 25E), and the credit for qualified commercial clean vehicles (Section 45W). It also excludes electric vehicle recharging property from the alternative fuel vehicle refueling credit. These changes directly affect individuals and businesses purchasing new or used electric vehicles, as well as those installing EV charging infrastructure, by eliminating the associated tax benefits. The repeal applies to vehicles purchased or under binding contract after 30 days following the bill's enactment.

HR 1347, the AIMM Act, permanently extends a tax provision allowing businesses to deduct depreciation, amortization, or depletion when calculating their business interest expense limit. This change directly affects manufacturers and other businesses that use these deductions for tax purposes. The bill amends the tax code to remove the previous expiration date (which applied only to years before 2022), making the deduction rule permanent for all future taxable years. The key change is eliminating a temporary provision, providing ongoing certainty for business tax calculations.

This bill repeals multiple tax credits for renewable energy projects, including solar, wind, and clean transportation fuels, which currently provide financial incentives to businesses. It directly affects companies that claim these credits, such as renewable energy developers and manufacturers, by eliminating their eligibility for these tax benefits starting in 2025. Key provisions remove specific sections of the tax code (like Sections 45, 45Q, and 48) and adjust related references to reflect the repeal. The changes apply to taxable years beginning after December 31, 2024, with no new provisions added - only the removal of existing credits.

The CREATE JOBS Act (S 2056) changes U.S. tax rules to accelerate business deductions. It allows immediate 100% expensing for qualified property (like equipment) placed in service after 2017, eliminating step-by-step depreciation. For residential and commercial real estate, it introduces a "neutral cost recovery" adjustment that modifies annual depreciation deductions based on economic changes. It also eliminates the option to amortize research and experimental expenses over 60 months, requiring businesses to deduct these costs immediately in the year incurred. These changes directly affect businesses purchasing equipment, owning rental properties, or conducting R&D, aiming to boost investment and cash flow.