Growing and Preserving Innovation in America Act of 2025

HR1062 (Growing and Preserving Innovation in America Act of 2025) was introduced by Rep. Feenstra (R-IA) on February 6, 2025, and referred to the House Ways & Means Committee — an early-stage bill with 7 cosponsors. The bill makes permanent the current higher deduction rates (37.5% for FDII, 50% for GILTI) that are scheduled to drop in 2026 to 21.875% and 37.5% respectively. This is a tax preservation bill, not a new spending authorization — no direct funding amount is allocated. The mechanism is a pure tax code change that prevents a scheduled increase in the effective tax rate on foreign-derived intangible income for US corporations. The money trail is clear: for companies like Microsoft, Apple, Alphabet, and NVIDIA with substantial patent, software, and IP-based income from foreign markets, this bill preserves an effective tax rate of ~13.125% on foreign IP income rather than the scheduled ~16.4% starting in 2026. The benefit is direct after-tax margin expansion. Real market data shows mixed short-term performance for beneficiaries: MSFT (-0.85% 7-day) and AAPL (-0.9%) have dipped slightly, while GOOGL (+3.08%), NVDA (+5.27%), and INTC (+29.49%) have rallied strongly. The 30-day trends are broadly up across tech (MSFT +20.32%, GOOGL +27.5%, AMZN +30.28%, NVDA +27.25%, INTC +95.97%), reflecting broader market momentum rather than this bill specifically — it's too early-stage to have driven price action. Structural winners are US-headquartered multinationals with high GAAP profitability from foreign IP — primarily big tech, pharma, and branded consumer goods. The legislative path requires Ways & Means Committee markup, House floor vote, Senate consideration, and White House signature. As an early-stage bill with a Republican sponsor in a Republican-controlled House (119th Congress), it has alignment with the majority party's policy priorities, but passage is not guaranteed. The bill's permanence provision makes it a higher-impact structural change vs. a temporary extension. Executive actions provided (Presidential Memoranda on petroleum production and Air Force training) are not directly relevant to this tax bill and do not amplify or conflict with HR1062's provisions.