To amend the Internal Revenue Code of 1986 to deny certain tax credits and deductions to businesses that use foreign adversary-controlled technology, and for other purposes.

Sponsor: Nathaniel Moran (Republican-TX)February 11, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Ways and Means.

Businesses using technology controlled by foreign adversaries would lose certain tax benefits.

This bill would stop U.S. businesses from getting certain tax breaks if they use technology controlled by foreign adversaries or are linked to such entities. This means they would no longer qualify for deductions like bonus depreciation or credits for research, aiming to reduce reliance on potentially risky foreign tech. These changes would take effect for tax years starting about one year after the bill becomes law.

What Would Change

Today, businesses can claim various tax credits and deductions, like bonus depreciation and research credits. There are no specific restrictions related to using technology controlled by foreign adversaries. If this bill passes, businesses using such technology or linked to certain foreign entities would lose access to these tax benefits. These changes would start about one year after the bill becomes law.

Key Provisions

Changes tax rules to classify businesses using certain foreign technology as "foreign-influenced entities."
Blocks businesses from getting a bonus tax deduction (bonus depreciation) for technology controlled by foreign adversaries.
Ends a tax deduction for research and development if it involves foreign adversary-controlled technology or is done by a prohibited foreign entity.
Modifies how businesses calculate their taxable income for interest deductions if they use foreign adversary-controlled technology or are owned by a prohibited foreign entity.
Denies a tax credit for increasing research activities to businesses identified as specified foreign entities or foreign-influenced entities.

View on Congress.gov

HR 7509 · 119th Congress · February 11, 2026 · AI Summary by gemini-2.5-flash · 10/10

To amend the Internal Revenue Code of 1986 to deny certain tax credits and deductions to businesses that use foreign adversary-controlled technology, and for other purposes.

What Would Change

Key Provisions

Lobbying Activity