Deterring Adversarial Access to Americans’ Data Act
Impact
If enacted, this bill would specifically prohibit businesses from claiming tax benefits if they depend on foreign adversary-controlled technology. This amendment would require companies to reevaluate their technology adoption strategies, potentially leading to a shift towards domestic or allied technology solutions. The changes would also encourage businesses to invest in secure technologies that are less likely to be influenced by foreign adversaries, thereby aligning business interests with national security goals.
Summary
House Bill 7509, titled the 'Deterring Adversarial Access to Americans’ Data Act', proposes significant amendments to the Internal Revenue Code of 1986. The bill's main objective is to deny certain tax credits and deductions to businesses that utilize technology controlled by foreign adversaries. As such, it aims to enhance national security and protect Americans' data from potentially harmful foreign influences.
Contention
The bill is expected to face considerable debate regarding its implications for business operations and international trade. Critics may argue that the restrictions could impose burdens on businesses that rely on global supply chains and international partnerships. Additionally, the definition of 'foreign adversary-controlled technology' could lead to disputes over compliance and eligibility for tax benefits, raising concerns over the bill's clarity and scope. Proponents, however, assert that the protection of American data and infrastructure is paramount, justifying the restrictions placed on businesses.
House Substitute for SB 51 by Committee on Legislative Modernization - Authorizing the chief information security officer to receive audit reports, updating statutes related to services provided by the chief information technology officer and authorizing the office of information technology services to provide certain services to political subdivisions and hospitals.