What This Bill Does · Plain English
Summary · Congress.gov
Growing and Preserving Innovation in America Act of 2025 This 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.
Action Timeline
2025-02-06
Referred to the House Committee on Ways and Means.
2025-02-06
Introduced in House
2025-02-06
Introduced in House
Frequently Asked Questions
Did HR.1062 pass?
HR.1062 is still alive. Current stage: COMMITTEE. Pass likelihood: 28%.
What does HR.1062 do?
Growing and Preserving Innovation in America Act of 2025 This 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…
Who sponsored HR.1062?
HR.1062 was sponsored by Randy Feenstra (R-Iowa).
Full Bill Text
119 HR 1062 IH: Growing and Preserving Innovation in America Act of 2025 U.S. House of Representatives 2025-02-06 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 1062 IN THE HOUSE OF REPRESENTATIVES February 6, 2025 Mr. Feenstra (for himself and Mr. Morelle ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to repeal the scheduled reduction in the deduction for foreign-derived intangible income. 1. Short title This Act may be cited as the Growing and Preserving Innovation in America Act of 2025 . 2. Repeal of scheduled reduction in the deduction for foreign-derived intangible income (a) In general Section 250(a)(3) of the Internal Revenue Code of 1986 is amended by striking paragraph (1) and all that follows and inserting paragraph (1)(B) shall be applied by substituting 37.5 percent for 50 percent . . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act.
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