Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

August 6, 2021

Report on recent US international tax developments 6 August 2021

Following months of negotiation, the United States (US) Senate this week took up the US$1.2 trillion1 bipartisan infrastructure bill, the Infrastructure Investment and Jobs Act (HR 3684). Senators during the week offered several hundred amendments to the bill, which slowed the debate process, although the Senate ultimately is expected to pass the legislation. The text of the bill was released on 1 August.

Senate Majority Leader Chuck Schumer filed a motion for cloture on the bill on 5 August, setting up a vote to cut off debate, and announced that the Senate would reconvene at noon on 7 August for the cloture vote which requires a 60-vote threshold. “And then we will follow regular order to finish the bill,” the Majority Leader said. The final passage vote could come early next week, or perhaps earlier if all senators agree to yield back time.

Under the Majority Leader’s timetable, after the infrastructure bill is completed, the Senate will immediately turn to a motion to proceed to the Democrats’ $3.5 trillion, fiscal 2022 budget resolution, followed by debate and amendment votes sometime next week. It is possible the House could interrupt its August recess to come back and vote on the Senate-passed budget blueprint for a “human infrastructure” bill that will center on health care, climate, and caregiving, generally to be paid for by corporate tax increases, taxes on capital income, and taxes on the wealthy. The budget resolution, when passed in identical form by both chambers, unlocks the 51-vote budget reconciliation mechanism, and House and Senate committees will work to flesh out their assigned pieces of the massive, Democrats-only bill in September and October.

The OECD2 this week released a peer review report on BEPS3 Action 5 (harmful tax practices) and issued a press release that indicated that the US Government has confirmed its intention to abolish the Foreign Derived Intangible Income (FDII) regime. The OECD noted that it therefore classified FDII as “in the process of being eliminated.”


For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP (United States), International Tax and Transaction Services, Washington, DC



  1. Currency references in this Alert are to the US$.
  2. Organisation for Economic Co-operation and Development.
  3. Base Erosion and Profit Shifting.

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more