Stop Corporate Inversions Act of 2026

The Stop Corporate Inversions Act of 2026 (HR7493) was introduced in the House on February 11, 2026, and subsequently referred to the House Committee on Ways and Means. This bill seeks to amend the Internal Revenue Code of 1986 to modify rules relating to inverted corporations. Specifically, it proposes to treat a foreign corporation as a domestic corporation for tax purposes if, after an acquisition of a domestic entity, more than 50 percent of the stock is held by former shareholders/partners of the domestic entity, or if management and control primarily occur within the United States with significant domestic business activities. The bill also changes the ownership threshold for a surrogate foreign corporation from 60 percent to 80 percent. This bill does not authorize or appropriate any specific funding amount. Instead, its mechanism is regulatory, aiming to alter the tax landscape for companies that engage in corporate inversions. The intent is to eliminate tax benefits previously associated with such transactions, thereby increasing the tax burden and reducing the profitability of companies that have inverted or are considering doing so. The policy area is taxation, and the direct financial impact would be through increased tax liabilities for affected corporations. Structural losers under this proposed legislation would be companies that have previously inverted or those in sectors like healthcare and technology that have historically utilized inversions for tax advantages. Companies such as Medtronic plc ($MDT) are examples of firms that have completed inversions. While the bill is in its early stages, its potential enactment could negatively impact the financial structures and profitability of such companies. Conversely, domestic corporations that have not inverted, or those that compete with inverted companies, could see a relative advantage if their inverted competitors face higher tax burdens. Looking at recent market data, Medtronic plc ($MDT) has seen a 7-day change of -0.83% and a 30-day change of -5.47%, with its current price at $85.93, near its 52-week low of $79.55. Pfizer Inc. ($PFE) has a 7-day change of -3.45% and a 30-day change of +0.22%, currently at $27.12. Stryker Corporation ($SYK) shows a 7-day change of +0.61% and a 30-day change of -9.31%, with its current price at $330.62. Bristol-Myers Squibb Company ($BMY) has a 7-day change of -3.94% and a 30-day change of -3.37%, currently at $58.27. Elevance Health, Inc. ($ELV) has a 7-day change of +6.4% and a 30-day change of +7.54%, currently at $311.48. The bill's early stage means these movements are not directly attributable to HR7493, but the legislation introduces a potential headwind for companies with inversion structures. The next legislative steps for HR7493 involve consideration by the House Committee on Ways and Means. Given its early stage, the bill would need to pass out of committee, then be voted on by the full House, and subsequently go through a similar process in the Senate. The existence of an identical bill, S3847, in the Senate, sponsored by Senator Reed, indicates a coordinated legislative effort and potentially increases the probability of this policy being advanced.