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Retain and Strengthen the Foreign-Derived Intangible Income (FDII) Deduction 

The Biden-Harris Administration has proposed eliminating the deduction for foreign-derived intangible income (FDII) that was part of the Tax Cuts and Jobs Act (TCJA). ACC members benefit from FDII, which replaced the domestic production deduction (former section 199) as an incentive to manufacture in the United States for export. FDII supports U.S. manufacturing and jobs. Eliminating the deduction for FDII would cost the U.S. chemical industry hundreds of millions per year. We urge Congress to retain and strengthen FDII to encourage businesses to export products from the United States.

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American Chemistry Council

The American Chemistry Council’s mission is to advocate for the people, policy, and products of chemistry that make the United States the global leader in innovation and manufacturing. To achieve this, we: Champion science-based policy solutions across all levels of government; Drive continuous performance improvement to protect employees and communities through Responsible Care®; Foster the development of sustainability practices throughout ACC member companies; and Communicate authentically with communities about challenges and solutions for a safer, healthier and more sustainable way of life. Our vision is a world made better by chemistry, where people live happier, healthier, and more prosperous lives, safely and sustainably—for generations to come.