Growing and Preserving Innovation in America Act of 2025
Growing and Preserving Innovation in America Act of 2025
Plain Language Summary
# Growing and Preserving Innovation in America Act of 2025 - Plain Language Summary **What the Bill Does:** This bill would make permanent certain tax breaks for large U.S. corporations that earn income from intellectual property and investments overseas. Currently, these tax deductions are set to expire at the end of 2025 and decrease significantly.
The bill would keep the deductions at their higher current levels indefinitely. Specifically, it allows corporations to deduct 37.5% of foreign-derived intangible income (like patents and trademarks used abroad) and 50% of global intangible low-taxed income from their federal taxes. **Who It Affects:** This bill primarily benefits large multinational corporations with significant overseas operations and intellectual property holdings. Supporters argue it encourages American companies to invest in innovation and keeps them competitive globally, while critics contend it reduces federal tax revenue and mainly helps profitable corporations rather than small businesses or workers. **Current Status:** The bill was introduced in the 119th Congress by Representative Randy Feenstra (R-Iowa) and is currently in committee, meaning it has not yet been debated or voted on by the full House of Representatives.
CRS Official Summary
Growing and Preserving Innovation in America Act of 2025This bill makes permanent the increased percentage rates at which a domestic corporation may deduct (for federal tax purposes) foreign-derived intangible income and global intangible low-taxed income (GILTI).As background, for tax years beginning after 2017 and before 2026, a domestic corporation generally is allowed a tax deduction equal to the sum of (1) 37.5% of the corporation’s foreign-derived intangible income, and (2) 50% of the corporation’s GILTI and any dividends that are attributable to the corporation’s GILTI. However, under current law, the tax deduction decreases starting in 2026, to the sum of (1) 21.875% of the corporation’s foreign-derived intangible income, and (2) 37.5% of the corporation’s GILTI and any dividends that are attributable to the corporation’s GILTI.Under the bill, for tax years beginning in 2026, a domestic corporation generally may claim a tax deduction equal to the sum of (1) 37.5% of the corporation’s foreign-derived intangible income, and (2) 50% of the corporation’s GILTI and any dividends that are attributable to the corporation’s GILTI.
Latest Action
Referred to the House Committee on Ways and Means.