H.R. 3140

119 HR 3140 IH: Stop Subsidizing Multimillion Dollar Corporate Bonuses Act
 U.S. House of Representatives
 2025-05-01
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  1st Session  H. R. 3140  IN THE HOUSE OF REPRESENTATIVES   May 1, 2025   Mr. Doggett  (for himself,  Mr. Casar ,  Ms. Chu ,  Mr. Cohen ,  Ms. DeLauro ,  Mr. Deluzio ,  Mr. Espaillat ,  Mr. Garamendi ,  Mr. García of Illinois ,  Mr. Johnson of Georgia ,  Ms. Lee of Pennsylvania ,  Mr. Magaziner ,  Ms. Moore of Wisconsin ,  Ms. Norton ,  Mr. Raskin ,  Ms. Salinas ,  Ms. Schakowsky ,  Ms. Stansbury ,  Mr. Takano ,  Ms. Tlaib ,  Ms. Tokuda , and  Mrs. Watson Coleman ) introduced the following bill; which was referred to the  Committee on Ways and Means    A BILL
To amend the Internal Revenue Code of 1986 to expand the denial of deduction for certain excessive employee remuneration, and for other purposes.
1.
Short title
This Act may be cited as the   Stop Subsidizing Multimillion Dollar Corporate Bonuses Act  .
2.
Expansion of denial of deduction for certain excessive employee remuneration
(a)
In general
(1)
Expansion
 Section 162(m)  of the Internal Revenue Code of 1986 is amended—
(A)
by striking  applicable employee remuneration  each place it appears in paragraphs (1), (4), and (5)(E) and inserting  applicable remuneration ,
(B)
by striking  covered employee  each place it appears in paragraphs (1) and (4) and inserting  covered individual , and
(C)
by striking  employee  each place it appears in paragraph (1) and subparagraphs (A), (C)(ii), and (E) of paragraph (4) and inserting  individual .
(2)
Covered individual
Paragraph (3) of section 162(m) of such Code is amended to read as follows:
(3)
Covered individual
For purposes of this subsection, the term  covered individual  means—
(A)
any individual who performs services (directly or indirectly) for the taxpayer (or any predecessor) for any taxable year beginning after December 31, 2020, or
(B)
any employee—
(i)
who was the principal executive officer or principal financial officer of the taxpayer (or any predecessor) at any time during any preceding taxable year beginning after December 31, 2016, and before January 1, 2021, or who was an individual acting in such a capacity, or
(ii)
the total compensation of whom for any taxable year described in clause (i) was required to be reported to shareholders under the Securities Exchange Act of 1934 by reason of such individual being among the 3 highest compensated officers for the taxable year (other than any individual described in clause (i)).
 Such term shall include any employee who would be described in subparagraph (B)(ii) if the reporting described in such subparagraph were required as so described.
 .
(3)
Conforming amendments
(A)
The heading for  section 162(m)  of the Internal Revenue Code of 1986 is amended by striking
employee  .
(B)
The heading for section 162(m)(4) is amended by striking
employee  .
(b)
Modification of definition of publicly held corporation
 Section 162(m)(2)  of the Internal Revenue Code of 1986 is amended—
(1)
by inserting  , with respect to any taxable year,  after  means , and
(2)
by striking subparagraph (B) and inserting the following:
(B)
that was required to file reports under section 15(d) of such Act ( 15 U.S.C. 78o(d) ) at any time during the 3-taxable year period ending with such taxable year.
 .
(c)
Regulatory authority
(1)
In general
 Section 162(m)  of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(7)
Regulations
The Secretary may prescribe such guidance, rules, or regulations as are necessary to carry out the purposes of this subsection, including regulations—
(A)
with respect to reporting, and
(B)
to prevent avoidance of the purposes of this section by providing compensation through a pass-through or other entity.
 .
(2)
Conforming amendment
Paragraph (6) of section 162(m) of such Code is amended by striking subparagraph (H).
(d)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2024.