West OC Times

Reps. Michelle Steel (R-CA) and Joe Morelle (D-NY) have collaborated to introduce the Growing and Preserving Innovation in America Act. The purpose of this bill is to permanently preserve a vital pro-innovation tax rate that was established in the 2017 Tax Cuts and Jobs Act (TCJA).

The TCJA implemented a deduction rate of 37.5% for foreign-derived intangible income (FDII), aiming to incentivize U.S. companies to repatriate valuable intellectual property and reinvest it domestically for future development. Concerns have arisen due to the Biden Administration's indication of allowing the more competitive TCJA rate to lapse in 2025. This decision could potentially lead American companies to retain assets and income in foreign nations, diminishing the attractiveness of the United States as a hub for fostering groundbreaking technologies.

Rep. Michelle Steel emphasized, "As the Vice Chair of the Ways and Means Committee Tax Team on U.S. Innovation, I am committed to preserving pro-taxpayer policies that encourage domestic investment." She further highlighted the significance of the FDII rate in promoting domestic investment and economic growth, stating, "The TCJA’s competitive FDII rate ensures that American companies are encouraged to invest their profits here at home, creating jobs and developing new technologies that grow our economy."

In alignment with the bill's objectives, Rep. Joe Morelle shared his perspective, noting, "As the Representative of an innovative city like Rochester, New York, I’ve seen firsthand the immense power investment in local and American-based companies can have on cities, towns, and people." He emphasized the importance of facilitating American companies to invest domestically, asserting, "When we make it easier for American companies to invest their profits here at home instead of overseas, we bolster our country’s global competitiveness and provide better support for families."

The Growing and Preserving Innovation in America Act aims to ensure that the United States maintains its status as a premier destination for nurturing global solutions and technologies. The collaborative efforts of Reps. Steel and Morelle underscore a bipartisan commitment to supporting American businesses and fostering innovation within the nation.