Deterring Adversarial Access to Americans’ Data Act | ChamberLight
Bills · HR 7509
IN COMMITTEE· 119TH CONGRESS
House BillHR 7509Taxation
Deterring Adversarial Access to Americans’ Data Act
INTRO FEB 11· LAST ACTION FEB 11
READING
4MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
Voters should care about this bill because it aims to address national security concerns related to data privacy and the integrity of U.S. supply chains. By financially discouraging the use of technology from foreign adversaries, the bill intends to reduce the risk of foreign governments gaining access to American data or disrupting critical infrastructure. This could mean more secure digital environments for individuals and businesses.
If this bill becomes law, businesses might face higher costs if they continue to use 'foreign adversary-controlled technology' or if they choose to switch to new, potentially more expensive, providers. If it doesn't pass, businesses would continue to receive existing tax benefits regardless of where their technology originates, which some argue leaves doors open for potential security risks. The bill could accelerate a shift towards diversifying technology supply chains away from certain countries, impacting global trade and technological development.
KEY PROVISIONS
4AI-extracted
PROVISION 01
Expands the definition of 'foreign-influenced entities' in the tax code to include any business that uses 'foreign adversary-controlled technology' during a tax year.
This expansion is crucial because it triggers the denial of various tax benefits for businesses falling under this new classification.
PROVISION 02
Denies 'bonus depreciation' for businesses that acquire 'foreign adversary-controlled technology' or if the property is owned by a 'prohibited foreign entity.'
Bonus depreciation allows businesses to write off a large portion of new asset costs immediately, so denying it significantly increases the taxable cost of such technology.
PROVISION 03
Denies the ability to fully expense (deduct immediately) domestic research and experimental costs if they are for 'foreign adversary-controlled technology' or incurred by a 'prohibited foreign entity.'
This disincentivizes U.S. companies from developing or acquiring technology considered a security risk by removing a key tax advantage for such expenditures.
PROVISION 04
Denies the tax credit for increasing research activities if the taxpayer itself is a 'specified foreign entity' or a 'foreign-influenced entity' (as expanded by this bill).
This further restricts tax benefits for entities deemed to have foreign adversarial influence, affecting their ability to innovate with U.S. tax support.
Voters should care about this bill because it aims to address national security concerns related to data privacy and the integrity of U.S. supply chains. By financially discouraging the use of technology from foreign adversaries, the bill intends to reduce the risk of foreign governments gaining access to American data or disrupting critical infrastructure. This could mean more secure digital environments for individuals and businesses.
If this bill becomes law, businesses might face higher costs if they continue to use 'foreign adversary-controlled technology' or if they choose to switch to new, potentially more expensive, providers. If it doesn't pass, businesses would continue to receive existing tax benefits regardless of where their technology originates, which some argue leaves doors open for potential security risks. The bill could accelerate a shift towards diversifying technology supply chains away from certain countries, impacting global trade and technological development.
KEY PROVISIONS
AI-extracted
high
Expands the definition of 'foreign-influenced entities' in the tax code to include any business that uses 'foreign adversary-controlled technology' during a tax year.
This expansion is crucial because it triggers the denial of various tax benefits for businesses falling under this new classification.
high
Denies 'bonus depreciation' for businesses that acquire 'foreign adversary-controlled technology' or if the property is owned by a 'prohibited foreign entity.'
Bonus depreciation allows businesses to write off a large portion of new asset costs immediately, so denying it significantly increases the taxable cost of such technology.
med
Denies the ability to fully expense (deduct immediately) domestic research and experimental costs if they are for 'foreign adversary-controlled technology' or incurred by a 'prohibited foreign entity.'
This disincentivizes U.S. companies from developing or acquiring technology considered a security risk by removing a key tax advantage for such expenditures.
med
Denies the tax credit for increasing research activities if the taxpayer itself is a 'specified foreign entity' or a 'foreign-influenced entity' (as expanded by this bill).
This further restricts tax benefits for entities deemed to have foreign adversarial influence, affecting their ability to innovate with U.S. tax support.
One year after the date of the enactment of this Act.
The amendments made by this bill apply to taxable years beginning after this date.
GLOSSARY
AI-written
Foreign adversary-controlled technology
Any information and communications technology or service (like hardware, software, or cloud services) that is designed, developed, manufactured, or provided by specific foreign entities or those influenced by them, or is heavily reliant on such technology for its main functions.
Foreign-influenced entities
Organizations or businesses that are significantly controlled or influenced by certain foreign governments or individuals. This bill expands the definition to include businesses using 'foreign adversary-controlled technology'.
Bonus depreciation
A tax incentive that allows businesses to deduct a large percentage of the cost of eligible new business property (like equipment or machinery) in the year it's placed in service, rather than spreading the deduction over many years.
Full expensing
A tax rule that allows businesses to deduct the entire cost of certain expenditures, like research and development costs, in the year they are incurred, rather than capitalizing them (spreading them out) over time.
Business interest deduction
A tax deduction that allows businesses to subtract the interest paid on their business loans from their taxable income, subject to certain limits based on their adjusted taxable income.
Information and communications technology or service
ACTION TIMELINE
2 EVENTS
FEB 11
Introduced in House
INTROREFERRAL
FEB 11
Referred to the House Committee on Ways and Means.
Any product or service, including hardware and software, that is primarily used for processing, storing, retrieving, or communicating information or data electronically.
