TYLER, Texas (KLTV) – U.S. Rep. Nathaniel Moran (R-Tyler) introduced legislation to deny federal tax incentives to companies that use technology controlled by foreign adversaries.
The Deterring Adversarial Access to Americans’ Data Act would amend the Internal Revenue Code to extend ‘Foreign Entity of Concern’ restrictions to major business tax incentives.
“If you’re one of those countries and you have developed a software or hardware that we are using here in the United States to garner information, to gather information, that’s personal data, information of Americans, we’re going to stop that,” Moran said.
The bill would require companies to sever ties with foreign adversary-controlled technology to remain eligible for provisions such as bonus depreciation, research and development expenses, research tax credits and interest deductibility.
Moran said companies need to examine the software and hardware they use, whether they are intentionally or unintentionally using foreign entity of concern technology.
Cam Ray, chair of the Smith County Democratic Party, said the bill is still early in the evaluation process and questioned whether the legislation is necessary, noting the IRS statute already in place.
Ray said data protection is a significant issue but suggested the focus should also be on domestic concerns.
“I think particularly if you look at the case with DOGE, of all of the US citizens data that’s been taken by US citizens and has been provided to private corporations, that’s a huge concern,” Ray said. “So why are we not dealing more with that?”
Ray said the legislation is more focused on tax deductions than data protection.
“I think it’s interesting that he’s calling it a data bill because I don’t really feel it’s a data bill,” Ray said. “It is a tax deduction bill.”
The bill has been referred to the House Committee on Ways and Means.
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