Bill > S1576

This bill, known as the "Stop Subsidizing Multimillion Dollar Corporate Bonuses Act", proposes to expand restrictions on tax deductions for excessive employee remuneration under Section 162(m) of the Internal Revenue Code. The legislation broadens the definition of "covered individual" to include any person performing services for a taxpayer after December 31, 2024, as well as previous high-ranking executives and top-compensated employees from 2016-2024. The bill modifies the definition of a publicly held corporation to include companies that were required to file certain financial reports during a three-year period. It grants the Secretary of the Treasury regulatory authority to create guidance preventing companies from circumventing these rules through alternative compensation structures, such as pass-through entities. Importantly, the bill aims to limit corporate tax deductions for extremely high executive compensation by expanding the types of employees and compensation arrangements subject to these restrictions. The changes will take effect for taxable years beginning after December 31, 2024, giving corporations time to adjust to the new requirements.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1576/all-info