Sioux City Times

U.S. Representatives Randy Feenstra and Joe Morelle have introduced the Growing and Preserving Innovation in America Act, a bill aimed at making permanent the reduced Foreign-Derived Intangible Income (FDII) tax rate for American businesses. This provision, initially part of the Tax Cuts and Jobs Act of 2017, lowered the FDII tax rate from 21% to 13.125%. Without legislative intervention, this rate is set to rise to 16.4% in 2026.

Rep. Feenstra emphasized the importance of maintaining the current tax rate, stating, "America is the world’s leader in research and innovation, and the Intellectual Property that results from that leadership should be held here – supporting jobs and expanding the tax base." He added that as a member of the House Ways and Means Committee, he is eager to ensure this policy continues to support economic growth within the United States.

Rep. Morelle highlighted his long-standing advocacy for investment in innovation as crucial for economic growth and global competitiveness. He remarked, "This legislation will help accomplish that goal by incentivizing American companies to invest here at home instead of overseas."

The Coalition for American Innovation expressed its support for the act, acknowledging its role in encouraging intellectual property development within the U.S., which has led to job creation and increased tax revenues.

The legislative text for this proposed act is available online.