Us Congress 2023-2024 Regular Session

Us Congress House Bill HB324 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	118THCONGRESS
3	3	1
4	4	STSESSION H. R. 324
5	5	To amend the Internal Revenue Code of 1986 to expand the denial of
6	6	deduction for certain excessive employee remuneration, and for other purposes.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	JANUARY12, 2023
9	9	Mr. D
10	10	OGGETT(for himself, Mr. BLUMENAUER, Ms. CHU, Mr. CICILLINE, Mr.
11	11	C
12	12	OHEN, Ms. DELAURO, Mr. DESAULNIER, Mr. ESPAILLAT, Mr.
13	13	G
14	14	ARAMENDI, Mr. GRIJALVA, Ms. MOOREof Wisconsin, Mr. POCAN, Ms.
15	15	S
16	16	CHAKOWSKY, and Mrs. WATSONCOLEMAN) introduced the following bill;
17	17	which was referred to the Committee on Ways and Means
18	18	A BILL
19	19	To amend the Internal Revenue Code of 1986 to expand
20	20	the denial of deduction for certain excessive employee
21	21	remuneration, and for other purposes.
22	22	Be it enacted by the Senate and House of Representa-1
23	23	tives of the United States of America in Congress assembled, 2
24	24	SECTION 1. SHORT TITLE. 3
25	25	This Act may be cited as the ‘‘Stop Subsidizing Mul-4
26	26	timillion Dollar Corporate Bonuses Act’’. 5
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29	29	•HR 324 IH
30	30	SEC. 2. EXPANSION OF DENIAL OF DEDUCTION FOR CER-1
31	31	TAIN EXCESSIVE EMPLOYEE REMUNERA-2
32	32	TION. 3
33	33	(a) I
34	34	NGENERAL.— 4
35	35	(1) E
36	36	XPANSION.—Section 162(m) of the Inter-5
37	37	nal Revenue Code of 1986 is amended— 6
38	38	(A) by striking ‘‘applicable employee remu-7
39	39	neration’’ each place it appears in paragraphs 8
40	40	(1), (4), and (5)(E) and inserting ‘‘applicable 9
41	41	remuneration’’, 10
42	42	(B) by striking ‘‘covered employee’’ each 11
43	43	place it appears in paragraphs (1) and (4) and 12
44	44	inserting ‘‘covered individual’’, and 13
45	45	(C) by striking ‘‘employee’’ each place it 14
46	46	appears in paragraph (1) and subparagraphs 15
47	47	(A), (C)(ii), and (E) of paragraph (4) and in-16
48	48	serting ‘‘individual’’. 17
49	49	(2) C
50	50	OVERED INDIVIDUAL.—Paragraph (3) of 18
51	51	section 162(m) of such Code is amended to read as 19
52	52	follows: 20
53	53	‘‘(3) C
54	54	OVERED INDIVIDUAL.—For purposes of 21
55	55	this subsection, the term ‘covered individual’ 22
56	56	means— 23
57	57	‘‘(A) any individual who performs services 24
58	58	(directly or indirectly) for the taxpayer (or any 25
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61	61	•HR 324 IH
62	62	predecessor) for any taxable year beginning 1
63	63	after December 31, 2020, or 2
64	64	‘‘(B) any employee— 3
65	65	‘‘(i) who was the principal executive 4
66	66	officer or principal financial officer of the 5
67	67	taxpayer (or any predecessor) at any time 6
68	68	during any preceding taxable year begin-7
69	69	ning after December 31, 2016, and before 8
70	70	January 1, 2021, or who was an individual 9
71	71	acting in such a capacity, or 10
72	72	‘‘(ii) the total compensation of whom 11
73	73	for any taxable year described in clause (i) 12
74	74	was required to be reported to shareholders 13
75	75	under the Securities Exchange Act of 1934 14
76	76	by reason of such individual being among 15
77	77	the 3 highest compensated officers for the 16
78	78	taxable year (other than any individual de-17
79	79	scribed in clause (i)). 18
80	80	Such term shall include any employee who would be 19
81	81	described in subparagraph (B)(ii) if the reporting 20
82	82	described in such subparagraph were required as so 21
83	83	described.’’. 22
84	84	(3) C
85	85	ONFORMING AMENDMENTS .— 23
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88	88	•HR 324 IH
89	89	(A) The heading for section 162(m) of the 1
90	90	Internal Revenue Code of 1986 is amended by 2
91	91	striking ‘‘E
92	92	MPLOYEE’’. 3
93	93	(B) The heading for section 162(m)(4) is 4
94	94	amended by striking ‘‘
95	95	EMPLOYEE’’. 5
96	96	(b) M
97	97	ODIFICATION OF DEFINITION OFPUBLICLY 6
98	98	H
99	99	ELDCORPORATION.—Section 162(m)(2) of the Internal 7
100	100	Revenue Code of 1986 is amended— 8
101	101	(1) by inserting ‘‘, with respect to any taxable 9
102	102	year,’’ after ‘‘means’’, and 10
103	103	(2) by striking subparagraph (B) and inserting 11
104	104	the following: 12
105	105	‘‘(B) that was required to file reports 13
106	106	under section 15(d) of such Act (15 U.S.C. 14
107	107	78o(d)) at any time during the 3-taxable year 15
108	108	period ending with such taxable year.’’. 16
109	109	(c) R
110	110	EGULATORYAUTHORITY.— 17
111	111	(1) I
112	112	N GENERAL.—Section 162(m) of the Inter-18
113	113	nal Revenue Code of 1986 is amended by adding at 19
114	114	the end the following new paragraph: 20
115	115	‘‘(7) R
116	116	EGULATIONS.—The Secretary may pre-21
117	117	scribe such guidance, rules, or regulations as are 22
118	118	necessary to carry out the purposes of this sub-23
119	119	section, including regulations— 24
120	120	‘‘(A) with respect to reporting, and 25
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123	123	•HR 324 IH
124	124	‘‘(B) to prevent avoidance of the purposes 1
125	125	of this section by providing compensation 2
126	126	through a pass-through or other entity.’’. 3
127	127	(2) C
128	128	ONFORMING AMENDMENT .—Paragraph (6) 4
129	129	of section 162(m) of such Code is amended by strik-5
130	130	ing subparagraph (H). 6
131	131	(d) E
132	132	FFECTIVEDATE.—The amendments made by 7
133	133	this section shall apply to taxable years beginning after 8
134	134	December 31, 2022. 9
135	135	Æ
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