I 
119TH CONGRESS 
2D SESSION 
H. R. 7509 
To amend the Internal Revenue Code of 1986 to deny certain tax credits 
and deductions to businesses that use foreign adversary-controlled tech-
nology, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 11, 2026 
Mr. MORAN introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to deny certain 
tax credits and deductions to businesses that use foreign 
adversary-controlled technology, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Deterring Adversarial 
Access to Americans’ Data Act’’. 
SEC. 2. TAX TREATMENT OF ENTITIES USING FOREIGN AD-
VERSARY-CONTROLLED TECHNOLOGY. 
(a) ENTITIES USING FOREIGN ADVERSARY-CON-
TROLLED TECHNOLOGY ADDED TO LIST OF FOREIGN-IN-
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FLUENCED ENTITIES.—Section 7701(a)(51) of the Inter-
nal Revenue Code of 1986 is amended— 
(1) in subparagraph (D)(i), by striking ‘‘or’’ at 
the end of subclause (I), by striking the period at 
the end of subclause (II) and inserting ‘‘, or’’ and 
by adding at the end the following new subclause: 
‘‘(III) which uses foreign adver-
sary-controlled technology during the 
taxable year.’’, and 
(2) in subparagraph (I), by adding at the end 
the following new clause: 
‘‘(vii) 
FOREIGN
ADVERSARY-CON-
TROLLED
TECHNOLOGY.—The term ‘for-
eign 
adversary-controlled 
technology’ 
means any information and communica-
tions technology or service that is— 
‘‘(I) designed, developed, manu-
factured, or provided by a specified 
foreign entity or foreign-influenced en-
tity described in subclause (I) or (II) 
of subparagraph (D), or 
‘‘(II) dependent on, or interoper-
able 
with, 
any 
other 
hardware, 
firmware, 
operating 
system, 
middleware, driver, embedded soft-
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ware, cloud service, or network com-
ponent described in subclause (I) for 
core functionality. 
‘‘(viii) INFORMATION
AND
COMMU-
NICATIONS
TECHNOLOGY
OR
SERVICE.— 
The term ‘information and communica-
tions technology or service’ means any 
hardware, software, or other product or 
service primarily intended to fulfill or en-
able the function of information or data 
processing, storage, retrieval, or commu-
nication by electronic means, including 
transmission, storage, and display.’’. 
(b) BONUS DEPRECIATION DENIED FOR FOREIGN 
ADVERSARY-CONTROLLED TECHNOLOGY AND PROPERTY 
OWNED BY PROHIBITED FOREIGN ENTITIES.—Section 
168(k)(2) of such Code is amended— 
(1) in subparagraph (A)— 
(A) in clause (i)— 
(i) by striking ‘‘or’’ at the end of sub-
clause (III), 
(ii) by striking ‘‘and or’’ in subclause 
(V) and inserting ‘‘or’’, and 
(iii) by striking ‘‘and’’ at the end of 
subclause (VI), 
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(B) in clause (ii), by striking the period at 
the end and inserting a comma, and 
(C) by adding at the end the following new 
clauses: 
‘‘(iii) which is not foreign adversary- 
controlled technology, and 
‘‘(iv) which is not property owned by 
a prohibited foreign entity.’’, and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(I) REGULATORY AUTHORITY.—The Sec-
retary shall prescribe such regulations as may 
be necessary or appropriate to carry out the 
purposes of clauses (iii) and (iv) of subpara-
graph (A).’’. 
(c) DENIAL OF FULL EXPENSING OF DOMESTIC RE-
SEARCH AND EXPERIMENTAL EXPENDITURES FOR FOR-
EIGN ADVERSARY-CONTROLLED TECHNOLOGY AND PRO-
HIBITED FOREIGN ENTITIES.—Section 174A(d) of such 
Code is amended by adding at the end the following new 
paragraph: 
‘‘(4) FOREIGN ADVERSARY-CONTROLLED TECH-
NOLOGY; 
PROHIBITED
FOREIGN
ENTITIES.—This 
section shall not apply to any amount paid or in-
curred— 
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‘‘(A) for the acquisition or development of 
foreign adversary-controlled technology, or 
‘‘(B) by a prohibited foreign entity.’’. 
(d) MODIFIED CALCULATION OF ADJUSTED TAX-
ABLE INCOME FOR PURPOSES OF BUSINESS INTEREST 
DEDUCTION.— 
(1) IN GENERAL.—Section 163(j)(8)(A) of such 
Code is amended by striking ‘‘and’’ at the end of 
clause (v) and by inserting after clause (vi) the fol-
lowing new clause: 
‘‘(vii) any item of income, gain, de-
duction, or loss which is attributable to— 
‘‘(I) foreign adversary-controlled 
technology, or 
‘‘(II) a trade or business owned 
by a prohibited foreign entity, and’’. 
(2) 
REGULATORY
AUTHORITY.—Section 
163(j)(11) of such Code is amended by inserting 
‘‘and which items of income, gain, deduction, or loss 
are attributable to foreign adversary-controlled tech-
nology or a trade or business owned by a prohibited 
foreign entity under paragraph (8)(A)(vii)’’ before 
the period at the end. 
(e) DENIAL OF CREDIT FOR INCREASING RESEARCH 
ACTIVITIES IN THE CASE OF PROHIBITED FOREIGN EN-
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TITIES.—Section 41(d)(4) of such Code is amended by 
adding at the end the following new subparagraph: 
‘‘(D) RESTRICTIONS
RELATING
TO
PRO-
HIBITED FOREIGN ENTITIES.—No credit shall 
be allowed to a taxpayer under subsection (a) 
for any taxable year if the taxpayer is a speci-
fied foreign entity or a foreign-influenced enti-
ty.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date which is one year after the date of the enactment 
of this Act. 
Æ 
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