Cybersecurity Policy Report, House Bill Would Withhold Tax Breaks From Companies Using Untrustworthy Tech, (Feb 13, 2026)
Legislation that would withhold tax incentives from companies that use technologies controlled by foreign adversaries has been introduced in the House.
The Deterring Adversarial Access to Americans’ Data Act (H.R. 7509, 119th Cong. (2026)) would “disincentivize the use of foreign adversary-controlled technology by denying key tax incentives to companies that use such technology,” according to the bill’s sponsor, Rep. Nathaniel Moran (R., Texas).
The bill would expand Foreign Entity of Concern (FEOC) restrictions administered by the Department of Energy, which now largely apply to battery technology, to include a wider range of technologies that would be ineligible for certain tax breaks, Rep. Moran explained in a news release.
“The bill would require companies to sever ties with foreign adversary-controlled technology in order to remain eligible for provisions such as bonus depreciation, research and development expenses, research tax credits, and interest deductibility,” he said.
“Taxpayer dollars should not subsidize business decisions that expose American data and supply chains to foreign adversaries,” Rep. Moran said. “Companies remain free to choose the technology they use, but eligibility for federal tax incentives is a privilege that should come with a responsibility to protect our economic and national security.”
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