GOP Plan Would Let Companies Opt Out of Foreign Tax Credit Rules

A provision in House Republicans’ new tax proposal would allow companies to partly disregard Treasury Department rules on the foreign tax credit that have been the target of fierce complaints for a year and a half.

Under the provision, which is part of the GOP package issued Friday, companies could in many instances temporarily avoid the stricter standards for taking advantage of the credit that Treasury issued in 2021. Those rules narrow the kinds of foreign taxes that companies can credit against their US tax bills.

Republicans maintain their proposal would shorten US companies’ supply chains, boost their ...