The agreement preserves the value of the U.S. R&D tax credit and other Congressionally approved investment incentives.

Unclear

Evidence is incomplete or still developing; a future update may resolve it. Learn more in Methodology.

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Agreement text, implementing guidance, or official analyses demonstrate that Pillar Two measures will not reduce or override the U.S. R&D tax credit and specified Congressionally approved incentives for U.S. investment and job-creation.

Source summary
The U.S. Treasury, represented by Secretary Scott Bessent, announced that it reached an agreement with over 145 countries in the OECD/G20 Inclusive Framework to exempt U.S.-headquartered companies from the OECD Pillar Two rules. The Treasury says the deal keeps U.S. multinationals subject only to U.S. global minimum taxes, preserves the U.S. R&D tax credit and other congressional incentives, and affirms U.S. tax sovereignty. Treasury said it will continue engaging with foreign governments to implement the agreement and pursue further discussions on digital taxation.
Latest fact check

Available independent evidence does not yet clearly substantiate the U.S. Treasury’s claim that the newly announced agreement definitively “preserves” or “protects” the value of the U.S. R&D tax credit and other Congressionally approved investment incentives.

External analyses of the June 2025 G7 political agreement note that it was only an agreement in principle and specifically highlight that key details and exemptions, including the treatment of the U.S. R&D credit under the Pillar Two framework, remained unsettled and subject to ongoing OECD Inclusive Framework negotiations as of late 2025. For example, Grant Thornton’s July 29, 2025 analysis of that agreement lists “blessing the U.S. R&D credit as a compliant Pillar 2 credit” merely as one of several possible future paths, and emphasizes that the mechanics and scope of any exemption, and whether non-G7 countries would join it, were still unclear. No accessible OECD, G20, or multilateral legal texts or detailed term sheets currently corroborate that 145+ countries have concretely agreed to a final, implemented arrangement that fully shields the U.S. R&D credit and all other U.S. investment incentives from any erosion via Pillar Two top-up taxes.

Given that the only detailed external discussion portrays the deal as a high-level political understanding with unresolved technical design on precisely this point, and there is no independently verifiable documentation showing that all participating jurisdictions have accepted specific rules guaranteeing preservation of the U.S. R&D credit’s value, the accuracy of the statement cannot be confirmed at this time. The verdict is Unclear because credible third-party sources describe core aspects of the agreement as in principle and not yet technically or legislatively settled, particularly with respect to R&D and investment tax incentives.

4 months, 19 days
Next scheduled update: Jul 05, 2026
4 months, 19 days

Timeline

  1. Scheduled follow-up · Jul 05, 2026
  2. Completion due · Jul 05, 2026
  3. Update · Jan 06, 2026, 12:31 AMUnclear
    Available independent evidence does not yet clearly substantiate the U.S. Treasury’s claim that the newly announced agreement definitively “preserves” or “protects” the value of the U.S. R&D tax credit and other Congressionally approved investment incentives. External analyses of the June 2025 G7 political agreement note that it was only an agreement in principle and specifically highlight that key details and exemptions, including the treatment of the U.S. R&D credit under the Pillar Two framework, remained unsettled and subject to ongoing OECD Inclusive Framework negotiations as of late 2025. For example, Grant Thornton’s July 29, 2025 analysis of that agreement lists “blessing the U.S. R&D credit as a compliant Pillar 2 credit” merely as one of several possible future paths, and emphasizes that the mechanics and scope of any exemption, and whether non-G7 countries would join it, were still unclear. No accessible OECD, G20, or multilateral legal texts or detailed term sheets currently corroborate that 145+ countries have concretely agreed to a final, implemented arrangement that fully shields the U.S. R&D credit and all other U.S. investment incentives from any erosion via Pillar Two top-up taxes. Given that the only detailed external discussion portrays the deal as a high-level political understanding with unresolved technical design on precisely this point, and there is no independently verifiable documentation showing that all participating jurisdictions have accepted specific rules guaranteeing preservation of the U.S. R&D credit’s value, the accuracy of the statement cannot be confirmed at this time. The verdict is Unclear because credible third-party sources describe core aspects of the agreement as in principle and not yet technically or legislatively settled, particularly with respect to R&D and investment tax incentives.
  4. Original article · Jan 05, 2026

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