Corporate Tax Fairness and Shareholder Rights Act of 2003

The Corporate Tax Fairness and Shareholder Rights Act of 2003 was designed to prevent American companies from avoiding U.S. taxes by reincorporating in foreign countries, a process known as "corporate inversion." Under this bill, companies that move their legal headquarters abroad while keeping the majority of their ownership and operations in the United States would still be treated as domestic corporations for tax purposes. Additionally, the bill aimed to protect investors by requiring companies to clearly disclose the potential impacts of these moves to shareholders and the Securities and Exchange Commission (SEC). For small business owners, the legislation also included temporary tax incentives to increase the amount of equipment and property costs they could immediately deduct from their taxes.