(Idaho State) U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) and U.S. Senate Foreign Relations Committee Chairman Jim Risch (R-Idaho), along with their respective committee counterparts, Ranking Member Ron Wyden (D-Oregon) and Jeanne Shaheen (D-New Hampshire), introduced legislation to provide expedited double-tax relief on U.S.-Taiwan cross-border investment and to authorize the President to negotiate a tax agreement with Taiwan to provide broader bilateral tax relief. The legislation is a companion bill to H.R. 33, which passed the U.S. House of Representatives by a vote of 423-1 on January 15.
“Taiwan’s unique status requires a unique tax solution,” Finance Committee leaders Crapo and Wyden said. “This legislation strengthens the economic partnership between the U.S. and Taiwan by delivering treaty-like tax benefits for American and Taiwanese workers and businesses operating across our borders. The Finance Committee has expressed unanimous support for this effort in the past, and today’s introduction in the Senate demonstrates a bipartisan commitment to bolster our relationship with a key economic and strategic partner. We will continue our efforts to get this important measure enacted into law as soon as possible.”
“Taiwan is a close friend and partner of the United States as we look to support regional stability and secure supply chains that are critical for the American economy,” Foreign Relations Committee leaders Risch and Shaheen said. “This legislation will reduce unnecessary double taxation on our companies, spur American economic prosperity and innovation in technologies of the future and deepen our economic relationship with Taiwan. We are grateful to our colleagues for supporting this commonsense legislation.”
The bill incorporates provisions of the U.S.-Taiwan Expedited Double-Tax Relief Act and the U.S.-Taiwan Tax Agreement Authorization Act, legislation the Finance Committee and Foreign Relations Committee each passed in the 118th Congress, respectively.
In 2024, Idaho celebrated a 40-year partnership with Taiwan, which is Idaho’s second largest trading market. In 2023 alone, Idaho shipped $504 million worth of goods to Taiwan. Primary exports include electrical equipment and machinery, medical equipment, food and agriculture. Strengthening our economic partnership with Taiwan will encourage the export of Idaho’s products.
The text of the U.S-Taiwan tax legislation introduced today (S. 199) is available here.
