Feenstra, Morelle Introduce Legislation to Spur Investment and Economic Growth in the United States
WASHINGTON, D.C. – Today, U.S. Reps. Randy Feenstra (R-Hull) and Joe Morelle (D-NY) introduced the Growing and Preserving Innovation in America Act, which would make permanent the reduced Foreign-Derived Intangible Income (FDII) tax rate for American businesses.
This provision was first authorized through the Tax Cuts and Jobs Act of 2017 and lowered the tax rate for U.S. companies’ FDII from 21% to 13.125%. Absent congressional action, that rate will increase to 16.4% in 2026.
“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. Fortunately, back in 2017, the Tax Cuts and Jobs Act included a provision – known as the FDII deduction – that helped return investment and IP development to our country, grew our economy, and created jobs. This policy now has a proven track record of success, and it’s important that we retain the current rate if we want that success to continue at the same pace.” said Rep. Feenstra. “As a member of the House Ways and Means Committee, I’m excited to introduce legislation to make the current tax rate on FDII permanent. This is just one of many tax policies that we must extend before the end of the year to deliver certainty for our business community and increase investment in our country – not overseas.”
“I've long championed investment in innovation as the key to growing our economy and enhancing our global competitiveness,” said Rep. Morelle. “This legislation will help accomplish that goal by incentivizing American companies to invest here at home instead of overseas, helping our local communities to grow and thrive. I’m grateful to Rep. Feenstra for introducing this legislation with me, and I look forward to our continued work together to support American businesses and American families.”
The Coalition for American Innovation issued the following statement in support of Feenstra’s Growing and Preserving Innovation in America Act:
“The Coalition for American Innovation applauds Congressmen Feenstra’s and Morelle’s introduction of the “Growing and Preserving Innovation in America Act of 2025” which recognizes the importance of the foreign-derived intangible income (FDII) provision and maintains it in its current form. Since enactment in 2017, FDII has been tremendously successful in encouraging the creation, ownership, and commercialization of intellectual property in the United States. The benefits of FDII have been far-reaching—spurring the growth of high-paying American jobs, boosting U.S. tax revenues, and solidifying the United States as a leading hub for pioneering future technologies. We appreciate the leadership on this vital issue.”
Legislative text can be found HERE.
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