Summary: H.R.4581 — 114th Congress (2015-2016)All Information (Except Text)

There is one summary for H.R.4581. Bill summaries are authored by CRS.

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Introduced in House (02/23/2016)

Stop Corporate Earnings Stripping Act of 2016

This bill amends the Internal Revenue Code to limit the tax deduction available to certain foreign-controlled U.S. multinational corporations for excess interest on debt incurred by such corporation (i.e., earnings stripping) by: (1) repealing the debt-to-equity ratio threshold required for such deduction, (2) reducing the permitted net interest expense threshold from 50% to 25% of the corporation's adjusted taxable income, (3) repealing the carryforward of excess amounts of interest, and (4) limiting to five years the carryforward of disallowed interest expense.