News

Washington, D.C. – U.S. Representatives Darin LaHood (R-IL) and Drew Ferguson (R-GA), members of the House Ways and Means Committee, have reintroduced the Bringing Back American Jobs Through Intellectual Property Repatriation Act, which will unlock the door for American companies to return to the United States. As we work to strengthen America’s global competitiveness in the wake of COVID-19, this legislation will remove obstacles within the tax code that discourage businesses from returning intellectual property (IP) to the United States.

“COVID-19 has illuminated the significant dangers of losing domestic supply chains to countries around the globe, particularly China,” said Rep. LaHood. “Incentivizing the return of intellectual property to the United States will ensure that we remain the world’s leader in innovation, protect good American jobs, and enable businesses to better compete with foreign companies. I am proud to join Congressman Drew Ferguson to reintroduce this important bill.”

“As the global pandemic demonstrated, America must incentivize strong and robust domestic supply chains while protecting our nation’s intellectual property," Rep. Ferguson said. “In order for our country’s IP to remain secure and competitive, companies need tax policies that will support the ingenuity and innovation needed for a continued economic rebound. We know that manufacturers prefer to keep intellectual property tied to the physical location of their operations. The risks to the economy when secure or sensitive information is in the hands of foreign actors with nefarious intentions are too great not to address. If we can return IP to American shores, we can return the manufacturing along with it. That’s why Congressman LaHood and I are introducing legislation to protect our IP and incentivize the return of jobs and manufacturing to the United States.”

The full text of the legislation can be read HERE. For a one-page overview click HERE.

The Bringing Back American Jobs Through IP Repatriation Act unlocks the door for American companies that want to come back home.

• American companies can bring back their IP developed offshore without any immediate U.S. tax cost
• Companies would still have to pay tax if they sell the IP in the future
• Businesses could continue to hold and use formerly foreign IP within the United States to support U.S. production and associated research and development
• Supports high-paying jobs in production and applied research and, ultimately, a higher standard of living for all Americans

How it works:
This would only apply to IP held on the date of enactment. Why?

• It encourages taxpayers to bring IP home in the near future
• It discourages further development of IP and migration of high-tech jobs outside the United States

The legislation was introduced in the 116th Congress as part of the Ways and Means Republicans' Agenda for a Healthy American Economy.

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