H.R. 3140

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3140 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 3140

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

May 1, 2025

Mr. Doggett (for himself, Mr. Casar, Ms. Chu, Mr. Cohen, Ms. DeLauro, 
Mr. Deluzio, Mr. Espaillat, Mr. Garamendi, Mr. Garcia 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.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Stop Subsidizing Multimillion Dollar 
Corporate Bonuses Act''.

SEC. 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.
<all>