Patriotic Purchasing Act of 2002

The Patriotic Purchasing Act of 2002 was designed to prevent companies that move their legal headquarters overseas to avoid U.S. taxes—a process known as "corporate inversion"—from receiving federal government contracts. Under this bill, a foreign corporation would be ineligible for federal contracts if it acquired a U.S. company but remained primarily owned by the original American shareholders and lacked significant business operations in its new home country. The legislation aimed to ensure that taxpayer-funded contracts are awarded to companies that maintain their tax obligations within the United States.