To amend the Internal Revenue Code of 1986 to deny deduction for outsourcing payments.

Plain-English Summary

This bill would change federal tax law to prevent businesses from deducting certain costs associated with moving jobs or operations outside of the United States. Under current law, companies can generally write off many ordinary business expenses on their taxes, which can include costs related to relocating work overseas. This bill would eliminate that tax benefit specifically for "outsourcing payments" — meaning money spent to shift jobs or services to foreign workers or foreign-based operations.

The bill primarily affects American businesses that outsource work to other countries. Currently, these companies may receive a tax break that effectively lowers the cost of moving jobs abroad. If passed, this bill would remove that financial incentive by making those outsourcing-related expenses non-deductible, meaning companies would no longer be able to use them to reduce their taxable income.

The intended effect is to make outsourcing jobs overseas slightly more expensive for businesses from a tax standpoint, which supporters argue could discourage companies from moving American jobs abroad. Workers in industries where outsourcing is common — such as manufacturing, customer service, and technology — could potentially be affected if the bill influences business decisions about where to locate jobs. The bill has been referred to the House Committee on Ways and Means, which handles tax-related legislation, and has not yet advanced further in the legislative process.