Stop Corporate Inversions Act of 2024

The Stop Corporate Inversions Act of 2024 targets tax avoidance strategies where U.S. companies merge with foreign entities to relocate their tax residence. It defines an "inverted domestic corporation" as a foreign entity that acquired a U.S. business after May 8, 2014, and either has over 50% of its stock held by former U.S. shareholders or maintains management control primarily in the U.S. with at least 25% of its business activities (employees, compensation, assets, or income) based in the U.S. Such corporations would then be treated as U.S. domestic entities for tax purposes, subjecting them to standard U.S. corporate tax rates. The bill includes an exception if the corporation has substantial foreign business activities, per existing 2017 regulations.