What does Preamble of Stop Subsidizing Multimillion Dollar Corporate Bonuses Act do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to expand the denial of deduction for certain excessive employee remuneration, and for other purposes,' proposes amendments to the Internal Revenue Code of 1986. The bill's stated purpose is to expand the denial of deduction for certain excessive employee remuneration.

What does SHORT TITLE. of Stop Subsidizing Multimillion Dollar Corporate Bonuses Act do?

This bill is formally titled the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

What does EXPANSION OF DENIAL OF DEDUCTION FOR CERTAIN EXCESSIVE EMPLOYEE of Stop Subsidizing Multimillion Dollar Corporate Bonuses Act do?

This section amends Section 162(m) of the Internal Revenue Code of 1986 to modify the denial of deduction for excessive employee remuneration. The term 'applicable employee remuneration' is replaced with 'applicable remuneration'. The term 'covered employee' is replaced with 'covered individual'. The definition of 'covered individual' is revised to include individuals performing services for a taxpayer and those who held principal executive or financial officer positions. The definition of a 'publicly held corporation' is modified to require reporting under Section 15(d) of the Securities Exchange Act of 1934 during the three-taxable-year period ending with the taxable year. The Secretary is granted authority to prescribe regulations to carry out the purposes of the section, including regulations to prevent avoidance. The amendments apply to taxable years beginning after December 31, 2024.

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Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

Last updated: 5/1/2025 · Introduced: 5/1/2025

Author: Lloyd Doggett (D-TX)

TL;DR (AI)

The bill expands the denial of deduction for certain excessive employee remuneration under the Internal Revenue Code of 1986.
It revises the definition of 'covered individual' to include individuals performing services for a taxpayer and those who held principal executive or financial officer positions.
The amendments apply to taxable years beginning after December 31, 2024, and grant the Secretary authority to prescribe regulations to prevent avoidance.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

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