Impact Global Solutions

What is the

HIRE Act 2025?

The HIRE Act 2025 (Halting International Relocation of Employment Act), introduced by Senator Bernie Moreno (R–Ohio), would impose a 25% excise tax on payments to foreign workers serving U.S. consumers. These expenses would no longer be tax-deductible, with revenue directed to a Domestic Workforce Fund for training and reskilling programs. If enacted, the law would take effect January 1, 2026, reshaping outsourcing for U.S. companies

The proposed HIRE Act could dramatically change the cost of outsourcing and offshoring. While still in its early stages, CPA firms and businesses can get ahead of the curve by understanding the risks and preparing now.

bd0.2

We’ve created two tailored pathways:

For CPA & Accounting Firms

For Companies & Business Leaders

Position yourself as the advisor your clients turn to.

Program: HIRE Act Education & DIY Toolkit

Help your partners, managers, and clients stay informed — without needing to parse complex legislation.

How we Help:
• Webinar → Simple, clear explanation of the HIRE Act and its implications.
• Executive Briefing  → Co-branded summary you can share with your clients.
• FAQ Sheet → Answers to the most common client questions.
• Quarterly Updates → Stay ahead with ongoing legislative and regulatory insights.

How It Works:
• Co-branded or white-labeled so your firm looks like the thought leader.
• Educate internally and offer as a revenue-generating client service.
• Flexible model: host webinars for clients, distribute toolkits, or subscribe to regular updates.

Ideal For:
• Firms looking to educate clients, deepen relationships, and create new advisory revenue streams.

Understand your exposure and protect your business.

Program: HIRE Act Risk & Advisory Services

If your company uses offshore or outsourced services, the HIRE Act could impact your bottom line. We help you assess and plan.

How we Help:
Outsourcing Exposure Assessment → Quantify how your outsourcing spend could be affected under different scenarios.
Custom Briefings → Executive-friendly updates on the bill, what it means for your industry, and what to watch.
Advisory Support → Options to restructure vendor contracts, explore U.S. intermediary models, or leverage U.S. territories for compliance-friendly alternatives.
Ongoing Monitoring → Subscription service for timely updates as the bill progresses.

Ideal For:
• Mid-sized and large companies relying on offshore service providers (IT, finance, back-office, tax prep).
• Business leaders who want clarity on risk and actionable strategies.

Why Work With Us:

divider
  • Deep outsourcing expertise in CPA, professional services, and global operations.
  • Balanced perspective: Clear risks and opportunities.
  • Action-focused approach: Tools you can use today while preparing for tomorrow.

Contact Us

Thank you for your interest. In your message, please share your primary business problem so we can connect you with the most relevant consultant.







    Frequently Asked Questions

    The Halting International Relocation of Employment (HIRE) Act is a bill introduced in the U.S. Senate on September 5, 2025 by Sen. Bernie Moreno. It proposes a 25% excise tax on payments U.S. businesses make to foreign service providers when the services benefit American consumers, and it would also eliminate tax deductibility for those payments. 

    If passed, the bill generally applies to payments made after December 31, 2025.

    Likely yes. The bill covers any “outsourcing payment” made to a foreign person—including vendors, subsidiaries, and affiliates—if the services benefit U.S. consumers. If you are working with a US vendor who makes foreign “outsourcing payments” they will most likely raise rates or pass along costs.

    Those may be less clear. If the arrangement is pure technology licensing (SaaS without labor), it may fall under royalty or license categories rather than services. But many providers mix technology and labor, which could trigger the tax. Treasury may issue clarifying regulations.

    Because outsourcing costs would no longer be deductible and could carry a 25% surcharge, after-tax costs could nearly double for CPA firms using offshore accounting or tax prep services.

    No. The bill includes an apportionment mechanism: only the portion of services directed to U.S. consumers would be subject to the tax. 

    Yes. Entities organized under the laws of U.S. possessions (e.g., Puerto Rico, Guam) are excluded from being treated as foreign persons, offering potential planning flexibility.

    A newly proposed trust fund financed by the excise tax revenues, intended to support workforce development, apprenticeships, and reskilling programs in the U.S. 

    It’s too early to say. The bill has just been introduced and faces a long legislative road—committee review, amendments, House approval, and presidential signature. Many industry groups are already lobbying strongly against it. At this point, the law is not passed, so timing and scope remain uncertain.

    • Begin tracking outsourcing payments clearly, especially by geography and client benefit.
    • Perform a risk assessment to model cost scenarios if the Act passes.
    • Review and update vendor contracts for change-in-law provisions.
    • Monitor legislative progress and Treasury regulations closely.