Offshore HQs may nix contracts

The House Appropriations Committee approved legislation barring U.S. companies that re-incorporate offshore from being awarded federal contracts.

The measure passed 41-17, with several Republicans joining 29 Democrats on the committee to vote in favor of the language, which was incorporated into an appropriations measure for the Treasury Department and other federal agencies.

The amendment was introduced by Rep. Rosa DeLauro, D-Conn., who cited recent moves by companies to incorporate in Bermuda to reduce federal taxes while enjoying the benefits of being U.S.-based businesses.

"They look like U.S. companies, the principle market their stock is traded in is the United States, and their physical assets are protected by our armed forces," DeLauro said. "They just refuse to pay for the benefits [that] every other U.S. citizen and company does."