To amend the Internal Revenue Code of 1986 to provide that certain payments to foreign related parties subject to sufficient foreign tax are not treated as base erosion payments.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 1911 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 1911 To amend the Internal Revenue Code of 1986 to provide that certain payments to foreign related parties subject to sufficient foreign tax are not treated as base erosion payments. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES March 6, 2025 Mr. Conaway (for himself, Mr. Suozzi, and Mr. Van Drew) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to provide that certain payments to foreign related parties subject to sufficient foreign tax are not treated as base erosion payments. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. CERTAIN PAYMENTS TO FOREIGN RELATED PARTIES SUBJECT TO SUFFICIENT FOREIGN TAX NOT TREATED AS BASE EROSION PAYMENTS. (a) In General.--Section 59A of the Internal Revenue Code of 1986 is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: ``(i) Certain Payments to Foreign Related Parties Subject to Sufficient Foreign Tax Not Treated as Base Erosion Payments.-- ``(1) In general.--An amount shall not be treated as a base erosion payment if the taxpayer establishes to the satisfaction of the Secretary that-- ``(A) the foreign person to whom such amount is paid or incurred is subject to an effective rate of foreign income tax of at least 15 percent, and ``(B) such amount is subject to an effective rate of foreign income tax of at least 15 percent. ``(2) Determination of effective rate on basis of applicable financial statements.--Except as otherwise provided by the Secretary, the effective rate of foreign income tax may be established o