H.R. 7559 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Ways and Means, Feb 12, 2026
What this bill does
In plain words · AI-written from the official summaryBlocks tax breaks for overseas labor payments
This bill would change the tax rules so that companies can't deduct payments they make to foreign workers or service providers. Specifically, it targets payments for labor or services that end up benefiting U.S. customers. The idea is to remove a financial incentive that some companies might have for moving work overseas.
How it affects you
If you own or work at a business that outsources labor or services to foreign workers, your company would lose a tax deduction it might currently claim. For other people, this could indirectly affect the prices or availability of goods and services, though the summary doesn't detail exactly how that would play out.
Read the official summary (Introduced in House, Feb 12, 2026)
This bill disallows a federal tax deduction for outsourcing payments.
The bill defines outsourcing payments as any premium, fee, royalty, service charge, or other payment made
• in the course of a trade or business,
• to a foreign person (excluding a corporation or partnership organized under the laws of the United States or a U.S. possession), and
• for labor or services which benefit (directly or indirectly) U.S. consumers.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
2nd SessionH. R. 7559
A BILL
To amend the Internal Revenue Code of 1986 to deny deduction for outsourcing payments.
Sponsor: Rep. Austin Scott (R-GA-8) · Introduced Feb 12, 2026 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Feb 12, 2026: “Referred to the House Committee on Ways and Means.”