On Sep. 17, 2026, Rep. Ron Estes, R-Kansas, introduced the U.S. Innovation and Global Competitiveness Act of 2026. The proposed bill would update certain U.S. international tax rules for multinational companies, including rules related to the base erosion and anti-abuse tax (BEAT), net CFC tested income (NCTI), foreign-derived deduction eligible income (FDDEI) and foreign tax credits (FTCs).
On Sept. 17, 2026, Rep. Ron Estes, R-Kansas, introduced the U.S. Innovation and Global Competitiveness Act of 2026, a proposed bill focused on U.S. international tax rules. The proposal addresses several provisions affecting companies with both U.S. and foreign operations, including an increase to the FDDEI deduction rate to 40%, BEAT changes that would exclude certain payments already subject to U.S. tax and create a high-tax exception, certain temporary intellectual property rules, and revisions to NCTI and FTC rules.
The proposed bill may provide favorable international tax provisions for multinational groups with foreign subsidiary income, related-party payments or offshore intellectual property arrangements. Multinational groups should monitor whether the bill advances and consider how the proposal could affect their cross-border tax profile.
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