Stop Corporate Inversions Act of 2021

The Stop Corporate Inversions Act of 2021 aims to prevent American companies from relocating their legal headquarters abroad to avoid paying U.S. corporate income taxes. Under this bill, a company that merges with a foreign firm would still be taxed as a U.S. corporation if the original American owners retain more than 50% of the new company or if the business continues to be managed and operated primarily within the United States. By tightening these definitions, the legislation seeks to ensure that large corporations contribute to the domestic tax base used to fund public services and infrastructure.