Lawmakers could use the tax code in unprecedented fashion to extend friendly tax treatment to Taiwanese firms operating in the U.S. and American companies doing business in Taiwan, a reflection of the island’s unique position and backing in Washington.
A draft bill that all four of Congress’ top tax writers endorsed would add a new section to the tax code and could mark the first time that this level of tax treaty-like treatment would be extended by domestic law.
Experts say it’s a novel approach that comes as the U.S. looks to unlock investment in microchip factories at home and support Taiwan while operating within the confines of U.S. policy.
