I
118THCONGRESS
1
STSESSION H. R. 324
To amend the Internal Revenue Code of 1986 to expand the denial of
deduction for certain excessive employee remuneration, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY12, 2023
Mr. D
OGGETT(for himself, Mr. BLUMENAUER, Ms. CHU, Mr. CICILLINE, Mr.
C
OHEN, Ms. DELAURO, Mr. DESAULNIER, Mr. ESPAILLAT, Mr.
G
ARAMENDI, Mr. GRIJALVA, Ms. MOOREof Wisconsin, Mr. POCAN, Ms.
S
CHAKOWSKY, and Mrs. WATSONCOLEMAN) 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.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Stop Subsidizing Mul-4
timillion Dollar Corporate Bonuses Act’’. 5
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•HR 324 IH
SEC. 2. EXPANSION OF DENIAL OF DEDUCTION FOR CER-1
TAIN EXCESSIVE EMPLOYEE REMUNERA-2
TION. 3
(a) I
NGENERAL.— 4
(1) E
XPANSION.—Section 162(m) of the Inter-5
nal Revenue Code of 1986 is amended— 6
(A) by striking ‘‘applicable employee remu-7
neration’’ each place it appears in paragraphs 8
(1), (4), and (5)(E) and inserting ‘‘applicable 9
remuneration’’, 10
(B) by striking ‘‘covered employee’’ each 11
place it appears in paragraphs (1) and (4) and 12
inserting ‘‘covered individual’’, and 13
(C) by striking ‘‘employee’’ each place it 14
appears in paragraph (1) and subparagraphs 15
(A), (C)(ii), and (E) of paragraph (4) and in-16
serting ‘‘individual’’. 17
(2) C
OVERED INDIVIDUAL.—Paragraph (3) of 18
section 162(m) of such Code is amended to read as 19
follows: 20
‘‘(3) C
OVERED INDIVIDUAL.—For purposes of 21
this subsection, the term ‘covered individual’ 22
means— 23
‘‘(A) any individual who performs services 24
(directly or indirectly) for the taxpayer (or any 25
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•HR 324 IH
predecessor) for any taxable year beginning 1
after December 31, 2020, or 2
‘‘(B) any employee— 3
‘‘(i) who was the principal executive 4
officer or principal financial officer of the 5
taxpayer (or any predecessor) at any time 6
during any preceding taxable year begin-7
ning after December 31, 2016, and before 8
January 1, 2021, or who was an individual 9
acting in such a capacity, or 10
‘‘(ii) the total compensation of whom 11
for any taxable year described in clause (i) 12
was required to be reported to shareholders 13
under the Securities Exchange Act of 1934 14
by reason of such individual being among 15
the 3 highest compensated officers for the 16
taxable year (other than any individual de-17
scribed in clause (i)). 18
Such term shall include any employee who would be 19
described in subparagraph (B)(ii) if the reporting 20
described in such subparagraph were required as so 21
described.’’. 22
(3) C
ONFORMING AMENDMENTS .— 23
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•HR 324 IH
(A) The heading for section 162(m) of the 1
Internal Revenue Code of 1986 is amended by 2
striking ‘‘E
MPLOYEE’’. 3
(B) The heading for section 162(m)(4) is 4
amended by striking ‘‘
EMPLOYEE’’. 5
(b) M
ODIFICATION OF DEFINITION OFPUBLICLY 6
H
ELDCORPORATION.—Section 162(m)(2) of the Internal 7
Revenue Code of 1986 is amended— 8
(1) by inserting ‘‘, with respect to any taxable 9
year,’’ after ‘‘means’’, and 10
(2) by striking subparagraph (B) and inserting 11
the following: 12
‘‘(B) that was required to file reports 13
under section 15(d) of such Act (15 U.S.C. 14
78o(d)) at any time during the 3-taxable year 15
period ending with such taxable year.’’. 16
(c) R
EGULATORYAUTHORITY.— 17
(1) I
N GENERAL.—Section 162(m) of the Inter-18
nal Revenue Code of 1986 is amended by adding at 19
the end the following new paragraph: 20
‘‘(7) R
EGULATIONS.—The Secretary may pre-21
scribe such guidance, rules, or regulations as are 22
necessary to carry out the purposes of this sub-23
section, including regulations— 24
‘‘(A) with respect to reporting, and 25
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•HR 324 IH
‘‘(B) to prevent avoidance of the purposes 1
of this section by providing compensation 2
through a pass-through or other entity.’’. 3
(2) C
ONFORMING AMENDMENT .—Paragraph (6) 4
of section 162(m) of such Code is amended by strik-5
ing subparagraph (H). 6
(d) E
FFECTIVEDATE.—The amendments made by 7
this section shall apply to taxable years beginning after 8
December 31, 2022. 9
Æ
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