This bill closes a major tax loophole that allows large American companies to avoid U.S. taxes by moving their headquarters overseas. Here's what's happening: When a U.S. company gets bought by a foreign company (or restructures to become foreign-owned), it can sometimes claim it's now a foreign corporation and stop paying U.S. taxes on its worldwide income. This is called a "corporate inversion." The Stop Corporate Inversions Act of 2026 makes it much harder to pull off this trick. The bill lowers the ownership threshold from 60% to 80%—meaning if former U.S. shareholders still own more than 20% of the company after the deal, the IRS will treat it as a U.S. company for tax purposes, no matter where it's technically incorporated. The bill also targets companies that move their headquarters and management overseas while keeping most of their business and employees in America. If a company's executive leadership, employees, assets, or income are primarily based in the United States (at least 25% by any of these measures), it will be taxed as a U.S. corporation even if it's technically foreign. There's one exception: companies can escape these rules if they have substantial business operations in their new foreign country that are comparable to their U.S. operations. The goal is simple—prevent profitable American companies from dodging taxes by moving their legal address abroad while keeping their actual business here.