Press Releases

U.S. Rep. Nathaniel Moran (TX-01) today introduced the Deterring Adversarial Access to Americans’ Data Act, legislation to disincentivize the use of foreign adversary-controlled technology by denying key tax incentives to companies that use such technology. 

The legislation closes a gap in current law by amending the Internal Revenue Code to extend Foreign Entity of Concern (FEOC) restrictions to major business tax incentives. FEOC restrictions currently apply to certain energy incentives but do not extend to major business tax provisions. The bill would require companies to sever ties with foreign adversary-controlled technology in order to remain eligible for provisions such as bonus depreciation, research and development expenses, research tax credits, and interest deductibility.

“Taxpayer dollars should not subsidize business decisions that expose American data and supply chains to foreign adversaries,” Moran said. “Companies remain free to choose the technology they use, but eligibility for federal tax incentives is a privilege that should come with a responsibility to protect our economic and national security.”

Background:

Congressman Nathaniel Moran serves on both the House Ways and Means Committee and the House Select Committee on Strategic Competition between the United States and the Chinese Communist Party, giving him direct jurisdiction over U.S. tax policy and congressional efforts to confront foreign adversaries.

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