Growing and Preserving Innovation in America Act of 2025
Summary
What This Bill Does
The Growing and Preserving Innovation in America Act amends Internal Revenue Code section 250. Its operative change preserves the higher foreign-derived intangible income deduction percentage by substituting 37.5 percent where the scheduled law would reduce the deduction. FDII is aimed at income from serving foreign markets with U.S.-held intangible property, so the bill benefits U.S. corporations with export-oriented intellectual property and foreign-derived sales while reducing expected federal revenue compared with the scheduled reduction.
Who Benefits and How
U.S. corporations with foreign-derived intangible income benefit from a larger continuing deduction. Export-oriented technology and manufacturing firms benefit if the deduction lowers tax on foreign-market income tied to U.S. intangibles. Tax planners benefit from preserving a more favorable section 250 percentage instead of adapting to the scheduled reduction. Innovation policy advocates benefit if the lower effective tax rate encourages companies to keep intangible property in the United States.
Who Bears the Burden and How
Federal taxpayers bear revenue loss compared with the scheduled reduction in the deduction. Treasury revenue estimators must account for a larger FDII deduction after enactment. IRS corporate tax examiners must administer the preserved deduction percentage. Domestic-only firms do not receive the same foreign-derived income tax advantage.
Key Provisions
- Amends section 250 to preserve a 37.5 percent FDII deduction percentage.
- Repeals the scheduled reduction in the deduction for foreign-derived intangible income.
- Applies the change on the date of enactment.
- Maintains a lower effective tax rate for qualifying foreign-derived intangible income.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Repeals the scheduled reduction in the foreign-derived intangible income deduction by keeping the section 250 percentage at 37.5 percent after enactment.
Key Policy Areas
Tax, International Business, Innovation
Primary Purpose
Repeals the scheduled reduction in the foreign-derived intangible income deduction by keeping the section 250 percentage at 37.5 percent after enactment.
Policy Domains
Resolution provisions
Identified Gains
- U.S. corporations with FDII
- Export-oriented technology firms
- Tax planners
- Innovation policy advocates
Identified Costs
- Federal taxpayers
- Treasury revenue estimators
- IRS corporate tax examiners
- Domestic-only firms
Sponsors
Legislative Progress
In CommitteeMr. Feenstra (for himself and Mr. Morelle) introduced the following …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
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