This bill restricts states from taxing the income of individuals who live in one state but work remotely for employers located elsewhere. It establishes that a state can only tax an individual's compensation if they are physically present within that state during the time the work is performed, preventing taxation based on where the employer is headquartered. The legislation specifically prohibits states from using "convenience of the employer" tests to claim taxing rights over workers who are physically located in another jurisdiction. These rules apply immediately upon enactment and affect nonresident employees and independent contractors, while leaving corporate taxes and unearned income regulations unchanged.
The Build America Fund Act creates a new government entity called the Manufacturing Sovereign Wealth Fund to invest billions of dollars in U.S. companies for the purpose of rebuilding domestic industrial capacity and reducing reliance on foreign supply chains. This fund will make loans and equity investments in strategic sectors like advanced manufacturing and technology, but it will require companies to keep operations and intellectual property within the United States for at least 50 years. In exchange for this capital, the fund will hold veto power over decisions to offshore production, sell to foreign buyers, or move research abroad, and it will enforce strict labor standards and prohibit stock buybacks. The bill also establishes an Industrial Sovereignty Council to oversee these investments and introduces new fees on corporate stock buybacks, high-volume trading, and specific offshoring activities to help finance the fund. Additionally, the legislation creates a future tax credit for eligible individuals funded by the fund's profits and increases the corporate tax rate to generate further revenue for the program.
The Data Center Tax Accountability and Disclosure Act of 2026 modifies tax rules and establishes reporting requirements for large data centers. It removes a tax incentive known as bonus depreciation for artificial intelligence data centers unless they meet specific green building standards, such as LEED Platinum or Gold certification. Additionally, the bill requires operators of data centers consuming at least 25 megawatts of power to submit detailed annual reports on their water and electricity usage, emissions, and backup power systems to state or federal agencies. These reports must be made public, and the law prohibits companies from using confidentiality agreements to hide this information. Operators who fail to comply with these reporting requirements face daily civil penalties of up to $100,000 for intentional violations.
The Business Activity Tax Simplification Act of 2026 updates federal rules to clarify when states can tax businesses operating across state lines, primarily affecting interstate companies and digital service providers. It expands the definition of taxable activities to include digital goods and services while clarifying that independent contractors do not create tax liability for their principal companies. The bill also establishes a minimum physical presence requirement, stating that states generally cannot tax businesses unless they have employees, agents, or property in the state for at least 15 days. Additionally, the law extends existing federal protections against state taxation to various "other business activity taxes" and provides specific guidelines for how states should calculate taxes on groups of affiliated companies. These changes are designed to take effect for taxable periods starting on or after January 1, 2026.
This bill increases the corporate tax rate on stock buybacks to 25 percent for large oil and gas companies that meet specific revenue and operational criteria. It targets corporations with an average annual gross receipt of at least $1 billion that are primarily engaged in producing, refining, processing, transporting, or distributing oil or natural gas. The higher tax rate applies only to stock repurchases made after the bill is enacted and before gasoline prices fall below $2.937 per gallon for five consecutive weeks. If gasoline prices drop below this threshold, the special tax provision ceases to apply, and companies may claim a partial reduction in their tax liability based on the duration of the high-price period.
The Afterschool for All Act significantly increases funding for the Community Learning Centers program, raising the annual appropriation from $1 billion to $10 billion for the fiscal years 2026 through 2035. This expansion aims to support after-school programs in elementary and secondary schools, directly benefiting students and educational institutions that rely on these grants. Additionally, the bill amends the name of the relevant section in the Elementary and Secondary Education Act to remove the term "21st Century," and it raises the corporate income tax rate from 21% to 22% for taxable years beginning after the law is enacted.
The Enhanced Small Business Growth Act of 2026 increases tax benefits for domestic manufacturers by raising the qualified business income deduction rate from 20 percent to 30 percent. To qualify, a business must derive at least 85 percent of its income from manufacturing tangible property, with at least 20 percent of production costs incurred within the United States. These changes apply to taxable years beginning after December 31, 2025, and modify how the deduction is calculated to ensure it is applied correctly.
The Small Business Tax Cut Act increases the qualified business income deduction from 20 percent to 23 percent for eligible taxpayers, directly affecting small business owners and investors. The bill modifies income thresholds that limit this deduction for higher earners and extends the phase-in rules for taxable income above certain limits. Additionally, it allows dividends from qualified business development companies to be treated similarly to qualified REIT dividends for deduction purposes. These changes apply to taxable years beginning after December 31, 2026.
This bill, the American Innovation Act of 2026, modifies federal tax rules for businesses starting new operations and those undergoing ownership changes. It allows businesses to deduct up to $20,000 of start-up and organizational costs in their first year, with the remaining costs amortized over 15 years, and adjusts these dollar amounts annually for inflation. Additionally, the bill preserves net operating losses and certain tax credits generated during a business's early years when the business is later sold to a new owner, preventing those tax benefits from being lost due to ownership transfers. These changes apply to business activities beginning after December 31, 2025, and are designed to provide tax relief to entrepreneurs and maintain the value of tax benefits for businesses that change hands.
This bill, titled the Ensuring Better Interest Treatment and Deductibility Act, would change how businesses calculate the limit on interest expenses they can deduct on their taxes. It directly affects corporations and other businesses that pay interest on loans by modifying the rules for determining adjusted taxable income. The key provision removes a specific clause from the tax code that currently limits how much interest can be deducted based on a company's earnings, effectively allowing more interest to be treated as a deductible business expense. These changes would apply to tax years starting after December 31, 2025, meaning businesses would need to adjust their financial planning for future tax filings.
